Profit, Loss, Interest and Discount — Practice

Question 1

An article bought for ₹200 is sold for ₹250. What is the profit percentage?
(a) 25% (b) 20% (c) 50% (d) 12.5%

Accepted Answer

(a) 25%.

Profit = 250 − 200 = ₹50. Profit% = (50/200) × 100 = 25%, taken on the cost price.

Question 2

An article marked at ₹500 is sold at a 10% discount. What is the selling price?
(a) ₹450 (b) ₹490 (c) ₹400 (d) ₹460

Accepted Answer

(a) ₹450.

SP = MP × (1 − discount%/100) = 500 × 0.90 = ₹450.

Question 3

By selling an article for ₹360, a trader makes a 20% profit. What was the cost price?
(a) ₹300 (b) ₹288 (c) ₹340 (d) ₹320

Accepted Answer

(a) ₹300.

CP = SP ÷ (1 + profit%/100) = 360 ÷ 1.20 = ₹300. Subtracting 20% from 360 would be wrong — you must divide by the factor.

Question 4

Find the simple interest on ₹1,000 at 5% per annum for 2 years.
(a) ₹100 (b) ₹110 (c) ₹50 (d) ₹200

Accepted Answer

(a) ₹100.

SI = PRT/100 = (1000 × 5 × 2) / 100 = ₹100.

Question 5

An article costing ₹800 is sold for ₹680. What is the loss percentage?
(a) 15% (b) 12% (c) 18% (d) 20%

Accepted Answer

(a) 15%.

Loss = 800 − 680 = ₹120. Loss% = (120/800) × 100 = 15%, on the cost price.

Question 6

A shopkeeper marks his goods 40% above cost and then allows a 25% discount. What is his profit percentage?
(a) 5% (b) 15% (c) 10% (d) 4%

Accepted Answer

(a) 5%.

Let CP = 100. Marked price = 140. SP after 25% discount = 140 × 0.75 = 105. Profit = 105 − 100 = 5 on 100, so profit% = 5%.

Question 7

Find the compound interest on ₹1,000 at 10% per annum for 2 years, compounded annually.
(a) ₹210 (b) ₹200 (c) ₹221 (d) ₹100

Accepted Answer

(a) ₹210.

A = 1000 × (1.1)² = 1000 × 1.21 = ₹1,210. CI = 1,210 − 1,000 = ₹210 (compared with ₹200 simple interest).

Question 8

The difference between the compound interest and the simple interest on a sum for 2 years at 10% per annum is ₹50. Find the sum.
(a) ₹5,000 (b) ₹4,500 (c) ₹5,500 (d) ₹2,500

Accepted Answer

(a) ₹5,000.

For 2 years, CI − SI = P(R/100)² = P × (0.1)² = 0.01P. Setting 0.01P = 50 gives P = ₹5,000.

Practice — Profit, Loss, Interest and Discount

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