Solved Questions on Profit and Loss
1. Ronald sold a smartwatch for $376 at a loss of 6%. Find the cost price of the smartwatch.
a) $400
b) $350
c) $300
d) $250
Answer: a) $400
Explanation: Cost price = Selling price x 100/(100 - loss%)
= $376 × 100/(100-6)
= $376 × 100/94 = $400
2. A boy buys 9 apples for $9.60 and sells them at 11 for $12. Find his gain or loss percent.
a) 2%
b) 2.75%
c) 2.83%
d) 3%
Answer: c) 2.83%
Explanation: CP of 9 apples = $9.60
CP of 1 apple = $9.60/9 = 1.06
SP of 11 apples = $12
SP of 1 apple = 12/11 = 1.09
Clearly,
SP of 1 apple > CP of 1 apple
We get profit on selling apples = SP - CP = 0.03
Gain% = (0.03/1.06) x 100
= 2.83%
3. A dealer buys furniture for $225 and spends $15 on its repairs. If he sells the same for $300, find his profit percentage.
a) 10%
b) 15%
c) 20%
d) 25%
Answer: d) 25%
Explanation: A dealer buys furniture for $225
Money spent on repairing the furniture = $15
Total expenses = $(225 + 15) = $240
Here, we consider total expenses as CP.
CP = $240
SP = $300
Profit = SP – CP = $(300 - 240) = $60
Profit% = (60/240) x 100
= 25%
4. Profit after selling a commodity for $425 is same as loss after selling it for $355. The cost of the commodity is:
a) $385
b) $390
c) $395
d) $400
Answer: b) $390
Explanation: Let CP = $x
Profit on $425 = Loss on $355
SP – CP = CP – SP
425 – x = x – 355
2x= 780
x = $390
5. A merchant marks his goods up by 75% above his cost price. What is the maximum discount% that he can offer so that he ends up selling at no profit or no loss?
a) 42.85%
b) 40.04%
c) 39.82%
d) 33.45%
Answer: a) 42.85%
Explanation: Let us assume that the cost price of the article = $100
Therefore, the merchant would have marked it as $100 + 75% of $100 = 100 + 75 = 175.
Now, if he sells it at no profit or no loss, he sells it at the cost price.
Discount = 175 – 100 = 75
i.e., he offers a discount of $75 on his selling price of $175
Therefore, his discount% = (75/175) x 100 = 42.85%
Practice Questions on Profit and Loss
1. Annie purchased a building set for $10000 and paid $500 for the transportation of furniture. After 2 years, she sells the same building set for $10150, and finds her profit or loss percentage.
a) 25%
b) 3.33%
c) 23%
d) 22%
Answer: b) 3.33%
2. Sam bought a gold chain from a shop. If he sells it at $8400 to Max and earns a profit of 12%, find the price at which Sam bought the gold chain.
a) $7100
b) $7250
c) $7350
d) $7500
Answer: d) $7500
3. A shopkeeper sold a sculpture for $2500. If the cost price of the sculpture is $2000, find the profit percent.
a) 23%
b) 25%
c) 27%
d) 29%
Answer: b) 25%
4. A shopkeeper purchases a silver table and sells it for $4200. If he incurs a loss of 20%, find the cost price of the silver table.
a) $5250
b) $5150
c) $5052
d) $5200
Answer: a) $5250
5. If the cost price of 120 dragon fruits is equal to the selling price of 100 dragon fruits, what is the profit percent in this transaction?
a) 15%
b) 17%
c) 20%
d) 22%
Answer: c) 20%
6. The owner of the cell phone shop charges 23% more than the cost price. If a customer paid $7011 for a cell phone, find the cost price of the cell phone.
a) $3200
b) $4300
c) $4900
d) $5700
Answer: d) $5700
7. The marked price of a ceiling platinum plated fan is $1250 and the shopkeeper allows a discount of 6% on it. Find the selling price of the fan.
a) $1175
b) $1125
c) $1224
d) $1899
Answer: a) $1175
8. A shopkeeper purchases a watch for $3200 and sells it at 15% profit. What is the selling price of the watch?
a) $3600
b) $3680
c) $3720
d) $3800
Answer: b) $3680
9. Ronald buys a geyser for $3680 and sells it at a gain of 7.5%. For how much does he sell it?
a) $2989
b) $3674
c) $3956
d) $4122
Answer: c) $3956
10. A pen is purchased for 20 cents and is sold for 26 cents. What is the percentage profit earned?
a) 10%
b) 20%
c) 30%
d) 40%
Answer: c) 30%
