Formula for Cracking Aptitude Questions on Profit and Loss

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Reduce the problem to one equation and use the formula: Selling Price = Cost Price (1 + 0.01 x profit percentage)





Question: Alfred buys an old scooter for Rs.4700 and spends Rs.800 on its repairs. If he sells the scooter for Rs.5800, what is his gain percent?

Solution:

Net C.P. = Cost + Repairs= Rs.4700 + 800= Rs.5500

S.P. = Rs.5800

Now, 5800= 5500(1+0.01p)

=> p = 300/(550x0.01)= 5.45 %





Question: By selling a Jeans for $ 432, John loses 4%. For how much should John sell it to gain 6%?

Solution:

For the first transaction, we have:

=> 432 = C.P. (1-0.04) = C.P. * 0.96 => C.P. = 432/0.96

For the second transaction, we have:

=> S.P. = C.P. (1+0.06) = (432/0.96) * 1.06

=> S.P.= $477

Note: All the problems on profit and loss can be reduced to a single step that can be solved directly using the formula S.P. =C.P. (1±0.01x), where x is the profit/loss percent. Remember that the ’+’ve sign is used when a profit is incurred and the ‘-’ve sign is used when a loss is incurred.





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