Comparing Quantities
Profit and loss
Work out profit, loss and discount, and give a profit or loss as a percentage of the cost price.
A shopkeeper pays one price for something and asks a different price when selling it. The price paid is the cost price; the price asked is the selling price. If the selling price is higher there is a profit, and if it is lower there is a loss.
Always out of the cost price
Profit = selling price - cost price. Loss = cost price - selling price. And profit per cent compares the profit with the cost price, never with the selling price. A profit of ₹50 on something that cost ₹250 is 20%, because 50 is a fifth of 250.
Worked example
A book is bought for ₹250 and sold for ₹300. What is the profit per cent?
Find the profit: 300 - 250 = 50.
Before any percentage can be worked out, you need the actual amount gained.
Try it together
Now let us find a selling price. A cupboard bought for ₹1500 is sold at a profit of 12%.
This one runs the other way round: you are given the percentage and asked for the money.
1.First work out the profit itself. What is 12% of 1500?
Have a go
Have a go on your own: a pen bought for ₹20 is sold for ₹25. What is the profit per cent? Give just the number.
Hint: The profit is 5, and it is compared with the 20 it cost.
Ready to practise?
Eight questions on what you have just read. Nothing is timed, and you can play as many times as you like.