Aptitude question and answer on Profit and loss

In this section we are going to discuss about profit and loss problems. Not just the overview of the topic, but also you are going to learn the important formulas on profit and loss along with explanation which is easy to understand.

1
If C.P. of 21 oranges is equal to S.P. of 18 Oranges , then profit precent is
A.    \(7{1 \over 7} \%\)
B.    \(5{5 \over 9} \%\)
C.    \(16{2 \over 3} \%\)
D.    \(7{1 \over 3} \%\)

Answer : C.  \(16{2 \over 3} \%\)

Explanation:
\({S.P.-C.P. \over S.P. } \times 100 \% = {3 \over 18 } \times 100 = 16{2 \over 3}\%\)

2

A man sold two horses for Rs. 3000 each gaining 25 % on the one and losing 25% on the other. His loss percent is 

A.    \(7{1 \over3} \%\)
B.    \(6{1 \over 4} \%\)
C.    \(7{1 \over 3} \%\)
D.    \(5{5 \over 9} \%\)

Answer : B.   \(6{1 \over 4} \%\)

Explanation:

3
What is the single profit equivalent to two successive profits of 20 % and 15 % ?
A.    38%
B.    35%
C.    30%
D.    20%

Answer : A.  38%

Explanation:
\(100 {20\% \over (+)20} 120 {+18\% \over 18.00}138.\)
\(\dot{..}\) Single Profit equivalent = 38 %

4
The cost price of 20 articles is the same as the selling price of x articles. If the profit is 25%, then the value of x is:
A.    15
B.    16
C.    18
D.    25

Answer : B.   16

Explanation:
Let C.P. of each article be Re. 1 C.P. of x articles = Rs. x.

S.P. of x articles = Rs. 20.

Profit = Rs. (20 - x).

\(\dot{..}\)\(\bigg ({ {20-x }\over x} \times x=25 \bigg)\)

=> 2000 - 100x = 25x

=> 
x=16

5
If books bought at prices ranging from Rs. 200 to Rs. 350 are sold at prices ranging from Rs. 300 to Rs. 425, what is the greatest possible profit that might be made in selling eight books ?
A.    Rs. 600
B.    Rs. 1200
C.    Rs. 1800
D.    None of these

Answer : C.  Rs. 1800

Explanation:
Least Cost Price = Rs. (200 x 8) = Rs. 1600.

Greatest Selling Price = Rs. (425 x 8) = Rs. 3400.

Required profit = Rs. (3400 - 1600) = Rs. 1800.

6
The percentage profit earned by selling an article for Rs. 1920 is equal to the percentage loss incurred by selling the same article for Rs. 1280. At what price should the article be sold to make 25% profit?
A.    2000
B.    2200
C.    2400
D.    Data inadequate

Answer : A.  2000

Explanation:
Let C.P. be Rs. x.

Then,

=> \({1920- x \over x} \times 100\)=\({x- 1280 \over x} \times 100\)

=> 1920 - x = x - 1280

=>2x = 3200

\(\dot{..}\) Required S.P. = 125% of Rs. 1600 =\(Rs. \bigg({125 \over 100} \times 100 \bigg)\)

= Rs 2000



7
By selling 45 lemons for Rs 40, a man loses 20 %. How many should he sell for Rs 24 to gain 20 % in the transaction ?
A.    16
B.    18
C.    20
D.    22

Answer : B.   18

Explanation:
Let S.P. of 45 lemons be Rs. x.

Then, 80 : 40 = 120 : x or   x =\({40 \times 120 } \over 80 \) = 60

For Rs.60, lemons sold = 45

For Rs.24, lemons sold  =\({45 \over 60} \times 24\)= 18.

8
A trader mixes 26 kg of rice at Rs. 20 per kg with 30 kg of rice of other variety at Rs. 36 per kg and sells the mixture at Rs. 30 per kg. His profit percent is:
A.    5%
B.    8%
C.    10%
D.    No profit, no loss

Answer : A.  5%

Explanation:
C.P. of 56 kg rice = Rs. (26 x 20 + 30 x 36)

= Rs. (520 + 1080) = Rs. 1600.

S.P. of 56 kg rice = Rs. (56 x 30) = Rs. 1680.

Gain =\(\bigg({80 \over 1600} \times 100 \bigg)\)% = 5%