# Profit and Loss Quiz Set 016

### Question 1

Mr. X purchased a machine at a cost of Rs. 7800. After spending Rs. 1200 on its repairs, he sells it at a price of Rs 10620. What is the profit percentage?

A

18%.

B

19%.

C

17%.

D

20%.

Soln.
Ans: a

The profit is sale price - total cost = \$10620 - (7800 + 1200)\$ = 1620. Percent profit is \${1620/9000} × 100\$, which gives 18%.

### Question 2

An item has a printed price of Rs. 8500 which includes the shopkeeper's profit of 25%. What is the cost price of the shopkeeper?

A

Rs. 6800.

B

Rs. 6810.

C

Rs. 6795.

D

Rs. 6805.

Soln.
Ans: a

If the sale price is (100 + 25), i.e. Rs. 125, then cost is Rs. 100. So if the sale is Rs. 8500, the cost = \$100/125\$ × 8500 = Rs. 6800.

### Question 3

A profit of 20%, as calculated on the cost price, is made by selling an item for Rs. 96. What is the profit in rupees?

A

Rs. 16.

B

Rs. 17.

C

Rs. 15.

D

Rs. 18.

Soln.
Ans: a

If cost is C, profit is P% and sale is S, then we know that C = \$S/(1 + P/100)\$. So the profit in rupees would be S - C = S - \$S/(1 + P/100)\$, which simplifies to \${S × P}/{100 + P}\$, which is \${96 × 20}/{100 + 20}\$ = Rs. 16.

Shortcut Method: If sale is 120, profit is Rs. 20. So if sale is 96, profit = Rs. \$20/120\$ × 96 = Rs. 16.

### Question 4

What should be the marked price of an item if a profit of 70% is to be made after allowing a discount of 15%?

A

Rs. 200.

B

Rs. 210.

C

Rs. 190.

D

Rs. 220.

Soln.
Ans: a

If the cost is 100, the sale price would be 100 + 70 = Rs. 170. If M is the marked price, then sale price is (100 - 15)% of M = 170. Which gives 85M/100 = 170, which gives M = Rs. 200

### Question 5

A loss of 5% is made by selling an article at Rs. 475. What is the cost of the article?

A

500.

B

510.

C

520.

D

495.

Soln.
Ans: a

Build it like this: if the sale is 100 - 5 = 95, the cost is Rs. 100. So, when the sale is 475 the cost should be \${100/95} × 475\$ = Rs. 500. 