QUESTIONS ON PROFIT & LOSS (PART-IV)

QUERY 32

A man buys a watch for Rs 1950 in cash and sells it for Rs 2200 at a credit of 1 year. If the rate of interest is 10%pa. Find profit or loss of that man.

A) gain 55
B) gain 50
C) lose 50
D) gain 30

MAHA GUPTA
First you should know that the interest earned is no profit; it’s just a compensation for the period for which a sum is lent. For profit/loss to find one needs to know the difference of the amount for a thing is bought and the marked price on which the interest is to be charged..

Obviously the interest is on the marked price
Now the marked price = 2200*(100/110) = 2000

It’s more than the buying price, so it’s a gain
Therefore the gain = 2000 – 1950 = 50 (option ‘B’)

QUERY 33

A shopkeeper on purchasing deceives the seller by 10% and on selling deceives the customer by 5%. What is the overall % gain in whole transaction?

A) 12%
B) 14.65%
C) 15%
D) 15.5%

MAHA GUPTA
Let the shopkeeper buys 100 gm of a thing. As he cheats 10% on buying he must have got 100 + 10% = 110 gm of that thing while buying. But he also cheats 5% while selling. Means he sells that 110 gm for 110 + 5% of 110 = 110 + 5.5 gm = 115.5 gm. It’s now clear he sells 100 gm of a thing for 115.5 gm. Hence his profit is 15.5% (option ‘D’)

QUERY 34

A shopkeeper sold sarees at Rs 2185 each after giving 5% discount on labelled price. Had he not given the discount, he would have earned a profit of 15% on the cost price. What was the cost price of each saree?

A) Rs 2000
B) Rs 1995
C) Rs 2105
D) Rs 2224

MAHA GUPTA
2185 is 100 – 5 = 95% of the labelled price
Therefore the labelled price = 2185(100/95) = 2300

Had he not given the discount it would have been the selling price, and his profit would have been 15% on the cost price

So the cost price = 2300(100/115) = 2000 (option ‘A’)

QUERY 35

A shopkeeper buys 10 dozen eggs at Rs 18 per dozen at wholesale price. He finds 10 dozen of eggs broken and hence declares them a waste. If he spends Rs 24 on the transportation, at what price per egg should he sell so that there is a profit of 10%?

A) 2
B) 2.25
C) 2.04
D) 2.50

MAHA GUPTA
Cost PRICE = Purchase Price + Expense on Transport = 10*18 + 24 = 204

So the selling price if the shopkeeper wants 10% of profit = 204*(110/100)

Number of eggs that can be sold = Total eggs – Broken eggs = 10*12 – 10 = 110

Therefore the selling price per egg = Selling price/Number of eggs to be sold = [204(110/100)]/110 = Rs 2.04 (option ‘C’)

QUERY 36

Some toffees were bought at the rate of 11 for Rs 10 and same number at the rate of 9 for Rs 10. If the whole lot was sold at 1 rupee per toffee, then gain and loss in the whole transaction was?

A) Re 1
B) Re 1.20
C) Rs 2
D) Rs 2.20

MAHA GUPTA
It will be easier if the number of bought items of each kind is taken equal to the LCM of each. LCM of 11 and 9 = 99

So, let each kind of toffees bought = 99
Therefore the cost price (CP) of toffees 11 for Rs 10 = 99(10/11) = 90
and the CP of toffees 9 for Rs 10 = 99(10/9) = 110

Therefore total CP = 90 + 110 = Rs 200

Now, the total number of toffees bought = 99 +99 = 198
But all the toffees were sold at 1 for Re 1
So the selling price (SP) = 198*1 = Rs 198

Therefore the loss = CP – SP = 200 – 198 = Rs 2 (answer ‘C’)

QUERY 37

A shopkeeper gains 20% while buying goods and 30% while selling them. Find his total gain percent?

A) 51%
B) 54%
C) 55%
D) 56%

MAHA GUPTA
Selling price method here will only confuse; better to do this as it’s here:

Let the shopkeeper buys 100 gm of a thing. As he gains 20% on buying he must have got 100 + 20% = 120 gm of that thing while buying. But he also gains 30% while selling. Means he sells that 120 gm for 120 + 30% of 120 = 120 + 36 gm = 156 gm. It’s now clear he sells 100 gm of a thing for 156 gm. Hence his profit is 56%. (option ‘D’)

QUERY 38

Sanjay sold a bicycle to Mohit at 46% profit. Mohit spent Rs 40 on repairs and sold it to Sunil for Rs 1500. In this deal Mohit made neither profit nor loss. What is the cost price for Sanjay?

A) 1000
B) 900
C) 960
D) 1060

MAHA GUPTA
As the deal was for no profit, no loss,
Total cost for Sanjay = Selling price = 1500

But this total cost includes expense on repairs also; so cost excluding repairs = 1500 – 40 = 1460

But this amount of 1460 includes profit of 46%

Therefore cost price for Sanjay = (100/146)*1460 = 1000 (option ‘A’)

NOTE: This question can be solved by the answer options in seconds.

QUERY 39

A watch was sold at a profit of 15%. If its cost had been 5% less and it had been sold for Rs 21 less, then the profit would have been 10%. Find the cost price of the watch.

A) 400
B) 190
C) 200
D) None of these

MAHA GUPTA
Better to avoid algebraic method as far as possible as it consumes more time. In an objective exam Maths is best done when done orally as far as possible. This solution may be helpful in that:

Let the cost price = 100
Then 1st selling price = 115 (Profit 15%)

The second cost price = 95 (cost price was 5% less)
The second selling price = 95 + 10% of 95 = 104.50

Therefore the difference in selling prices = 115 – 104.50 = 10.50
But the actual difference is 21

If difference is 10.50, the cost price = 100
If difference is 21 the cost price = (100/10.50)*21 = 200 (option ‘C’)

QUERY 40

By using a false weight, a dealer defrauds his customer by 5% in purchasing and by 5% in selling. His gain percent in?

A) 10
B) 2.5
C) 10.25
D) 25

MAHA GUPTA
Let the shopkeeper wants to buy 100 gm of a thing. As he cheats in weight he must have got 100+5% = 105 gm of that thing while buying. But he cheats 5% of weight again while selling. Means he sells that 105 gm for 105+ 5% of 105 = 110.25 gm. It’s now clear he sells 100 gm of a thing for 110.25 gm. Hence his profit is 10.25%. (option ‘C’)