Question

• A trader makes 20% profit in selling a washing ma-
chine at 12000 rupees. How much would he have in-
vested in the machine? During new year sales, its price
in reduced by 1200 rupees. Is the sale now at a profit
or loss? What is the percent?​

Answer 1

To solve profit and loss question, we need to understand the concept of percentage as well as the concept of selling price, cost price and profit.

Recall that:

$\text{Profit } = \text{Selling Price} - \text{Cost Price}$

$\text{Selling Price } =\text{Cost Price} + \text{Profit}$

$\text{Cost Price } =\text{Selling Price} - \text{Profit}$

$\text{Profit or Loss Percentage } = \dfrac{\text{Profit or Loss}}{\text{Cost Price}} \times 100\%$

Given:

Selling Price of the washing machine = Rs 12000

Profit made for selling the washing machine = 20%

Find the cost price:

$\text {Cost Price } = 100\%$

$\text {Profit } = 20\%$

$\text {Selling Price } = 100\% + 20\%$

$\text {Selling Price } = 120\%$

$\text {Selling Price } = 120\%$

$\text {Selling Price } = \text{Rs }12000$

$120\% = \text {Rs }12000$

$1\% = \text {Rs }12000 \div 120$

$1\% = \text {Rs }100$

$1\% = \text {Rs }100$

$100\% = \text {Rs }100 \times 100$

$100\% = \text {Rs }10000$

Answer i) The cost price of the washing machine s Rs 10000

Given:

Discount on the selling price = Rs 1200

Find the new Selling Price:

$\text {Discount } = \text {Rs }1200$

$\text {Selling Price } = \text {Rs }12000 - \text {Rs }1200$

$\text {Selling Price } = \text {Rs }10800$

Find the profit/loss:

$\text {Profit} = \text {Selling Price } - \text {Cost Price }$

$\text {Profit} = \text {Rs } 10800 - \text {Rs }10000$

$\text {Profit} = \text {Rs } 800$

Find the profit percentage:

$\text{Profit Percentage } = \dfrac{\text{profit}}{\text{cost price}} \times 100\%$

$\text{Profit Percentage } = \dfrac{\text{800}}{\text{10000}} \times 100\%$

$\text{Profit Percentage } = 8\%$

Answer: ii) The profit is Rs 800 and the profit percentage is 8%.