Profit and Loss Problems - Exam Prep Insights

Profit and Loss Problems - Common Mistakes

Q. A car is bought for $20,000 and sold for $18,000. What is the loss percentage?

Solution

Loss = Cost Price - Selling Price = 20000 - 18000 = 2000. Loss Percentage = (Loss/Cost Price) * 100 = (2000/20000) * 100 = 10%.

Correct Answer: A — 10%

Q. A man bought two articles for $300 and $500. If he sells both for $600 each, what is his overall profit percentage?

Solution

Total Cost Price = 300 + 500 = 800. Total Selling Price = 600 + 600 = 1200. Profit = 1200 - 800 = 400. Profit Percentage = (400/800) * 100 = 50%.

Correct Answer: B — 20%

Q. A man sells a book for $80, making a profit of 60%. What was the cost price of the book?

Solution

Let Cost Price = x. Selling Price = x + 60% of x = 1.6x. 1.6x = 80. x = 80/1.6 = 50.

Correct Answer: B — $40

Q. A product is marked at $500 and sold at a discount of 20%. What is the selling price?

Solution

Discount = 20% of 500 = 100. Selling Price = Marked Price - Discount = 500 - 100 = 400.

Correct Answer: B — $450

Q. A trader bought 100 kg of sugar at $2 per kg and sold it at $2.50 per kg. What is the profit percentage?

Solution

Cost Price = 100 * 2 = 200. Selling Price = 100 * 2.5 = 250. Profit = 250 - 200 = 50. Profit Percentage = (50/200) * 100 = 25%.

Correct Answer: B — 25%

Q. If a man makes a profit of 25% on selling a shirt for $200, what was the cost price?

Solution

Let Cost Price = x. Selling Price = x + 25% of x = 1.25x. 1.25x = 200. x = 200/1.25 = 160.

Correct Answer: A — $160

Q. If a man sells a bicycle for $300 at a loss of 10%, what was the cost price of the bicycle?

Solution

Let Cost Price = x. Selling Price = x - 10% of x = 0.9x. 0.9x = 300. x = 300/0.9 = 333.33. Therefore, Cost Price = $333.33.

Correct Answer: A — $270

Q. If a person invests $1000 at a simple interest rate of 5% per annum for 3 years, what will be the total amount at the end?

Solution

Simple Interest = Principal * Rate * Time = 1000 * 5/100 * 3 = 150. Total Amount = Principal + Interest = 1000 + 150 = 1150.

Correct Answer: A — $1150

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