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Profit and Loss Questions

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If a man reduces the selling price of a fan from 400 to 380 his loss increases by 20% .What is the cost price of fan ?


A400

B500

C450

D550

Answer: Option B

Explanation:

Lets assume the cost price = x.
So, initial loss = (x - 400).
Given, 20% ( x - 400) = 20
=> (x - 400) = 100
=> x = 500

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The cost of two varieties of paint is Rs. 3969 per 2 kg and Rs. 1369 per 2 kg respectively. After how many years the value of both paint will be the same, if variety 1 appreciates at 26% per annum and variety 2 depreciates at 26% per annum?


A2 years.

B3 years.

C2 1/2 years

DNone of these

Answer: Option A

Explanation:

Simply appreciates variety 1 by 26% and depreciates variety 2 by 26% as:
3969(1+1/26)^n=1369(1+1/26)^n
For n = 2 we get both values equal.
Variety 2 Variety1
3969.00 1369 Initially
2937.06 1724.94 after I year
2173.42 2173.42 after II year
So the price become same after 2 years.

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A man purchased a watch for Rs.400 and sold it at a gain of 20% of the selling price. The selling price of the watch is:


ARs. 500

BRs. 460

CRs. 480

DRs. 440

Answer: Option A

Explanation:

Given Cost price of watch = 400
and Gain% = 20% of SP
20%of SP = SP - CP
CP = SP(1-20/100)
=> CP = SP*4/5
=> SP = CP * 5/4
=>SP = 400*5/4
=> SP = Rs. 500

NOTE:
If the question if it would have given like"purchased for Rs. 400 and sold it at a gain of 20% of the Cost price ?"
Then
Given Cost price of watch = 400
and Gain% = 20%
Gain = 400 * 20/100 = 80
Cost price = (400 + 80) = 480


As in this questions it has given "purchased for Rs. 400 and sold it at a gain of 20% of the Selling price ?"

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100 oranges are bought at the rate of Rs. 350 and sold at the rate of Rs. 48 per dozen. The percentage of profit or loss is:


A100/7% gain

B15% gain

C100/7% loss

D15 % loss

Answer: Option A

Explanation:

C.P. of 100 orange=350



S.P. of 12 is 48 i.e, 4 of each now of 100 will be 400



So profit = 400 - 350 = 50



Profit = profit * 100% cp = 100/7% gain

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A tv manufacturer has decided to increase the sale to beat the economic slow down it decides to reduce the price of tv sets of 25% as a result of which the sales increased by 20 % what is the effect on total revenue of company


ADecrease by 20%

BIncrease by 20%

CIncrease by 10%

DDecrease by 10%

Answer: Option D

Explanation:

Lets assume cost price of T.V = Rs. 100
so,marked price of T.V = Rs. 75
=> Final price = 120% of 75 = Rs. 90
Hence, Decrease in price = (100-90) = 10
Decrease by 10%.

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A salesman has the liberity to sell a hair dryer in his store at a price between Rs. 300 and Rs. 700. Profit earned by selling the hair dryer for Rs. 650 is twice the loss incurred when it is sold for Rs. 350. What is the cost price of the hair dryer ?


ARs. 550

BRs. 450

CRs. 350

DRs. 150

Answer: Option B

Explanation:

Lets assume loss = Rs. X
So Loss x = C.P - S.P
=> X=C.P-350 -----------(1)
2X=650-C.P ------------- (2)
By solving the above eq. (1) & (2)
=> C.P = Rs. 450

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The marked price of coat was 40% less than the suggested retail price. Eesha purchased the coat for half of the marked price at the 15th anniversary sale. What percent less than the suggested retail price did Eesha pay?


A0.6

B0.2

C0.7

D0.3

Answer: Option C

Explanation:

Let the retail price = 100
So the market price will be = (100 - 40)% (100) = 60
Easha purchased price = 60/2 = 30
So she bought it for 70% less than retail price.

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Raj earns 25% on an investment but loses 10% on another investment. If the ratio of thetwo investments is 3:5, what is the gain or loss on the two investments taken together?


A13.125% loss

B6.25 % loss

C3.125% gain

D3.123% gain

Answer: Option C

Explanation:

2 investments to be 3x and 5x
Total income of Raj = (3x)*1.25+(5x)*0.9 = 8.25
Therefore gain% = 0.25/8*100 = 3.125%

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Eesha has a wheat business. She purchases wheat from a local wholesaler of a particular cost per pound. The price of the wheat of her stores is $3 per kg. Her faulty spring balance reads 0.9 kg for a KG. Also in the festival season, she gives a 10% discount on the wheat. She found that she made neither a profit nor a loss in the festival season. At what price did Eesha purchase the wheat from the wholesaler?


A3

B2.5

C2.43

D2.7

Answer: Option C

Explanation:

Faulty spring balance reads 0.9 kg for a kg" means that she sells 1 kg for the price of 0.9 kgs,
so she looses 10% of the price because of the faulty spring balance. She looses another 10% because of the discount.
So, she actually sells 1 kg for $3)0.9*0.9=$2.43 and since at that price she made neither a profit nor a loss,
Then Eesha purchase the wheat from the wholesaler for $2.43.

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The value of a scooter depreciates in such a way that its value of the end of each year is 3/4 of its value of the beginning of the same year. If the initial value of the scooter is Rs.40,000, what is the value at the end of 3 years ?


ARs.13435

BRs.23125

CRs.19000

DRs.16875

Answer: Option D

Explanation:

40,000(34)3=16875

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