The following terms are useful in profit and loss questions:

(a) The cost price (abbreviated as C.P) of a product is the price paid by a person who wishes to sell it again.

(b) There may be an allowance or trade discount reducing the C.P.

(c) The list price or marked price is the price at which the product is listed or marked to be sold.

(d) There may be a discount or series of discounts (usually expressed as a percent) on the list price.

(e) The selling price (abbreviated as S.P) or sales price is the price at which the product is finally sold.

(f) If the S.P is greater than the C.P, there has been a profit.

(g) If the S.P is lower than the C.P, there has been a loss.

(h) If the product is sold at the same price as the cost, there has been no loss or profit.

(i) A percentage profit or loss may be based either on the C.P or on the S.P.

(j) Profit or loss may be stated in terms of Rs. and paisas or in terms of percent.

(k) Overhead expenses include such items as rent, salaries, etc., and may be added to C.P or to the profit to increase the S.P.

**Important Formulae**

-> Profit/Gain = S.P - C.P

-> Loss = C.P - S.P

-> Profit/Loss Percentage = S.P-C.P/C.P * 100

-> Loss % = Loss*100/C.P

-> Profit % = (Profit * 100)/C.P

** 1) A shopkeeper buys a watch for Rs. 350 and sells it for Rs. 392. Find his percentage of profit?**

(A) 10%

(B) 12%

(C) 15%

(D) 18%

** 2) A man bought a bicycle for Rs. 750 and sold it for Rs. 675. Find his percentage loss.**

(A) 5%

(B) 8%

(C) 10%

(D) 13%

** 3) John purchased a car for Rs. 25,000. He spent Rs. 5000 on its repairs, then sold it for Rs. 33,000. Find his gain percent.**

(A) 10%

(B) 20%

(C) 25%

(D) 35%

** 4) A man sells two houses for Rs. 2 lakh each. On one he gained 20% and on the other he lost 20%. His total profit or loss% in the transaction will be**

(A) 4% profit

(B) 5% loss

(C) 6 2/3% profit

(D) 4% loss

** 5) If a car is sold for Rs. 50000 the profit is 17%, what would be profit percentage if sold for Rs. 47000.**

(A) 14.85%

(B) 15.98%

(C) 16.20%

(D) 14.50%

** 6) A retailer buys a fridge for Rs. 4500. For how much should he sell so that there is gain of 8%?**

(A) Rs. 4000

(B) Rs. 4200

(C) Rs. 4860

(D) Rs. 5300

** 7) A dealer marks his goods 20% above his cost price. If he gives a discount of 10% on his marked price, the profit he earns on his goods:**

(A) 7.5%

(B) 8%

(C) 10%

(D) 12%

** 8) A boy buys an article at 75% of its value and sells it for 20% more than its value, his percent profit based on cost will be.**

(A) 50%

(B) 60%

(C) 70%

(D) 75%