Be thorough with profit and loss problems

Hyderabad: This article is in continuation to the last article on preparation for the Sub-Inspector of Police recruitment exam. Here are some practice questions, answers and explanations on the Profit and Loss topic.

1. A man buys a cycle for Rs 1400 and sells it at a loss of 15%. What is the selling price of the cycle?
A. Rs 1090 B. Rs 1160 C. Rs 1190 D. Rs 1202
Ans: C
Explanation:
Cost price = 1400

SP = 15% loss on Cost Price

= (100-15)% of Rs 1400

= Rs 85/100 × 1400 = Rs 1190

2. The selling price of 10 oranges is the cost price of 13 oranges. Then the profit percentage is

A. 30% B. 10% C. 13% D. 3%

Ans: A
Explanation:
Let the CP of 1 orange = Rs 1

The CP of 10 oranges = Rs 10

The CP of 13 oranges = Rs 13

The SP of 10 oranges = Rs 13

Gain per cent = (13-10)/10 * 100 = 30%

3. A man buys 12 articles for Rs 12 and sells them at the rate of Rs 1.25 per article. His gain percentage is:
A. 20 B. 25 C. 15 D. 18

Ans: B

Explanation:

Cost Price = 12
Selling Price = 12 × 1.25 = 15
Total Profit = 15-12 = Rs 3

% gain = (3/12) x 100 = 25%
4. A horse and a cow were sold for Rs 12,000 each. The horse was sold at a loss of 20% and the cow at gain of 20%. His entire transaction resulted in?

A. No loss or gain B. Gain of Rs 1000
C. Loss of Rs 1000 D. Gain of Rs 2000
Ans: C
Explanation:
Total SP = Rs 24000

CP = 100/(100-loss%) × SP

CP of horse = Rs [(100/80) × 12000] = 15000
CP = 100/(100 gain%) × SP
CP of cow = Rs[(100/120) × 12000] = 10000

Total C.P. = Rs 25000

Loss = Rs (25000-24000) = Rs 1000

5. A shopkeeper expects a gain of 22.5% on his cost price. If in a week, his sale was of Rs 392, what was his profit?

A. Rs 18.20 B. Rs 70

C. Rs 72 D. Rs 88.25

Ans: C

Explanation:

Selling Price = 392
CP = 100/(100 gain%) × SP
CP = Rs (100/122.5 × 392) = Rs (1000/1225 × 392) = Rs 320

Profit = Rs (392-320) = Rs 72

6. What profit/loss per cent did Ramu earn if he purchased an item of Rs 5,600 and sold it at three-fourth of its cost price?

A. Loss of 20 per cent B. Gain of 25 per cent

C. Neither gain or loss D. None of the above

Ans: D

Explanation:

CP = Rs 5600
SP = Rs 5600 × ¾ = Rs 4200
Loss = Rs 5600-4200 = Rs 1400
Loss percentage = 1400 × 100/5600 = 25%

By Banda Ravipal Reddy

Director, SIGMA

Sai Institute of General Mental Ability

Hyderabad