Parul University

Faculty of Engineering and Technology

Department of Applied Science & Humanities
Academic Year 2024-25
Subject: Quant and Reasoning (303105311)
Branch: CSE & IT

Unit 7: Profit & Loss, partnerships, S.I & C.I

1) Cost Price: It is the price at which a product is purchased.

2) Selling Price: It is the price at which a product is sold.
3) Profit or gain: If the selling price of a product is more than the cost price, there will be profit in the deal.
Therefore, Profit or Gain = S.P. - C.P.
4) Loss: If the selling price of a product is less than the cost price, the seller will incur a loss.
Therefore, Loss = C.P. - S.P.

Some Basic Formula:

𝑃𝑟𝑜𝑓𝑖𝑡 𝑋 100
1) Profit % Or Gain % =
𝐶.𝑃

𝐿𝑜𝑠𝑠 𝑋 100
2) Loss% =
𝐶.𝑃

3) If there is a profit or gain in the deal or transaction;

100+𝑃𝑟𝑜𝑓𝑖𝑡%
Selling Price (S.P.) =
100
X C.P
100
And, the Cost Price (C.P.) = X S.P.
100 + 𝑃𝑟𝑜𝑓𝑖𝑡%

4) If there is a loss in the deal or transaction;

Selling Price (S.P.) =

100−𝐿𝑜𝑠𝑠% X C.P
100
100
And, the Cost Price (C.P.) = X S.P.
100−𝐿𝑜𝑠𝑠%
5) If an article is sold at a gain of say X%, then S.P. = [100 + X] % of C.P.

6) If an article is sold at a loss of say, X% then S.P. = [100 – X] % of C.P.

7) When a seller sells two similar items one at X% gain and another one at same X % loss, the seller always
incurs a loss in the deal which is given by:
𝑋 2 𝑋2
Loss % = (10) = %
100

8) If a seller claims that he is selling goods at cost price but uses false weight to earn profit;

𝑇𝑟𝑢𝑒 𝑊𝑒𝑖𝑔ℎ𝑡−𝐹𝑎𝑙𝑠𝑒 𝑊𝑒𝑖𝑔ℎ𝑡

Profit % = [ ( ) X 100] %
𝐹𝑎𝑙𝑠𝑒 𝑊𝑒𝑖𝑔ℎ𝑡

Questions:
1) Alfred buys an old scooter for Rs. 4700 and spends Rs. 800 on its repairs. If he sells the scooter for Rs. 5800,
his gain percent is:

Cost Price (C.P.) = Rs. (4700 + 800) = Rs. 5500.

Selling Price (S.P.) = Rs. 5800.
Gain = (S.P.) - (C.P.) = Rs.(5800 - 5500) = Rs. 300.

300 5
Gain %= (5500 x 100) % = 5 11 %

2) A shopkeeper sold an article for Rs. 2500. If the cost price of the article is 2000, find the profit percent.
C.P. = Rs. 2000
S.P. = Rs. 2500
Profit or Gain = S.P. -C.P.
= 2500 - 2000 = 500.
500
Gain %= (2000 x 100) % = 25%

3) A man purchases a TV for Rs. 8000 and sells it at 10% loss. What is the selling price of T.V?

C.P. of the TV = Rs. 8000

S.P. of the TV =?
Loss incurred = 10%
Apply formula:
Selling Price (S.P.) =
100−𝐿𝑜𝑠𝑠% X C.P
100
Therefore, S.P. = 7200 Rs.

4) Ramesh bought a chair for Rs. 1540 and sold it to Suresh. If Ramesh earned a profit of 25%, find the selling
price of chair.
C.P. of the chair = Rs. 1540
S.P. of the chair =?
Profit earned = 25%
100+𝑃𝑟𝑜𝑓𝑖𝑡%
Selling Price (S.P.) =
100
X C.P
Therefore, S.P. = 1925 Rs.

5) A shopkeeper purchases a table and sells it for Rs. 4200. If he incurs a loss of 20%, find the cost price
of table.
S.P. of the table = Rs. 4200

C.P. of the table =?

Loss incurred = 20%

100
Cost Price (C.P.) = X S.P.
100−𝐿𝑜𝑠𝑠%

C.P = 5250 Rs.

6) Suresh bought a cell phone from a shop. If he sells it at Rs. 8400 to Mahesh and earns a profit of 12%, find
the price at which Suresh bought the cell phone.
S.P of the cell phone = Rs. 8400
C.P. of the cell phone =?
Profit earned = 12 %
100
Cost Price (C.P.) = X S.P.
100 + 𝑃𝑟𝑜𝑓𝑖𝑡%

C.P = 7500 Rs.

7) If selling price is doubled then, the profit triples. What is profit per cent?

Let the C.P be Rs.100 and S.P be Rs.x,

ThenThe profit is (x−100).
Now the S.P is doubled, then the new S.P is 2x.
New profit is (2x−100).
Now as per the given condition;
=> 3(x−100) = 2x−100.
By solving, we get, x = 200.
Then the Profit percent = [(200−100)/100]
= 100.
Hence the profit percentage is 100%.

8) On selling 15 balls at Rs 400 there is loss equal to Cost Price of 5 balls. The cost price of a ball is?
Let the cost price of 1 ball be x.
According to the problem, the loss incurred on selling 15 balls at Rs 400 is equal to the cost price of 5 balls.
This can be written as:
Loss = Cost price of 5 balls.
15x−400 = 5x
10x = 400
x = 40.
Therefore, the cost price of 1 ball is Rs 40.

9) A person buys 18 pens for 12 Rs and sells 12 pens for 18 rupees. Find his profit percentage.

Let the cost price of 1 pen be x.

The person buys 18 pens for 12 Rs,
so the cost of 1 pen is:
x = 12/18
= 2/3 Rs.
The selling price of 12 pens is 18 Rs, so the selling price of 1 pen is: 18/12 = 3/2 Rs.
The profit made on selling 1 pen is: Profit = Selling price−Cost priceProfit = 3/2−2/3
Profit = 5/6 Rs.
The profit percentage can be calculated using the formula: Profit percentage = (Profit/Cost price)×100.
Substituting the values, we get:
Profit percentage = [(5/6)/ (2/3)] ×100.
Profit percentage = 125%.
Therefore, the profit percentage is 125%.

10) Cost price of 12 articles is equal to the selling price of 8 articles. Find the profit / loss %?

Let the cost price of 1 article be x.

Therefore, the cost price of 12 articles will be 12x.
Given that the cost price of 12 articles is equal to the selling price of 8 articles.
12𝑥 3𝑥
So, the selling price of 1 article will be = .
8 2
𝑆.𝑃−𝐶.𝑃
Profit% = X 100
𝐶.𝑃

3𝑥
2
−𝑥
= X 100
𝑥

Profit% = 50%.

Therefore, the profit percentage is 50%.

11) The cost price of 20 articles is the same as the selling price of x articles. If the profit is 25%, then the value
of x is:
Let C.P. of each article be Re. 1 C.P. of x articles = Rs. x.
S.P. of x articles = Rs. 20.
Profit = Rs. (20 - x).

20−𝑥
X 100 = 25
𝑥

x = 16.

12) In a certain store, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains
constant, approximately what percentage of the selling price is the profit?

Let C.P.= Rs. 100. Then, Profit = Rs. 320, S.P. = Rs. 420.
New C.P. = 125% of Rs. 100 = Rs. 125
New S.P. = Rs. 420.
Profit = Rs. (420 - 125) = Rs. 295.

295
Required % = X 100 = 70% ( Approx)
420

13) A vendor bought toffees at 6 for a rupee. How many for a rupee must he sell to gain 20%?
C.P. of 6 toffees = Rs. 1.
6
S.P Of 6 toffees = 120% of Rs 1 = Rs. .
5
6
For Rs , toffees sold = 6.
5

6
For 1 Rs, toffees sold = 6 X = 5.
5

14) The percentage profit earned by selling an article for Rs. 1920 is equal to the percentage loss by selling the
same article for Rs. 1280. At what price should the article be sold to make 25% profit?

Let the cost price of the article be C.

According to the question, the percentage profit earned by selling the article for Rs.1920 is
equal to the percentage loss by selling the same article for Rs. 1280. Mathematically, we can write:

1920−𝐶 𝐶−1280
X 100 = x 100
𝐶 𝐶
Simplifying the above equation, we get:
1920−C = C−1280
2C = 3200
C = 1600
So, the cost price of the article is Rs. 1600.
Now, we need to find the selling price that will give a 25% profit.
Let the selling price be S.
𝑆−𝐶
Profit percentage = 𝐶 ×100.
We need to find the selling price 'S' that will give a profit of 25%.
𝑆−1600
Therefore,25 = x 100.
1600
Solving for 'S',
we get S = Rs.2000.
Therefore, the article should be sold for Rs.2000 to make a 25% profit.

15) A dishonest shopkeeper pretends to sell his goods at cost price but uses false weights and gains 111/9%.
Find the false weight he is using instead of 1kg weight.
Let the false weight be x gm.
Gain % = [(True weight – False weight)/ False weight] × 100
⇒ 100/9 = [(1000 – x)/x] × 100
⇒ 10 x = 9000
⇒ x = 900
∴ the shopkeeper is using weights of 900 gm instead of 1kg.

16) A dishonest shopkeeper professes to sell pulses at the 20% profit , also he uses a false weight of 800gm for
a kg, His actual gain is____%.

Let CP of 1000g item =Rs.1000.

CP of 800g item =Rs.800.
SP of 800g item =Rs.1000.
Profit by false weight = 1000−800 = 200.
Profit by selling = 20% of 1000 = 200.
P% = [400/800] × 100
=50%.

Partnership:
Working partner: A partner who is actively involved in the business and manages the business is known
as an active partner.

Sleeping partner: A partner who invests money but does not involve or look after the business is known
as a sleeping partner.

If two partners invest capital C1 and C2 for the periods T1 and T2, respectively, the ratio of their profits is given
by:

Similarly, if three partners A, B, and C invest Rs. C1, Rs. C2 and Rs. C3 for different periods T1, T2, and T3
respectively then the ratio of their profits is given by:
Profit of A: Profit of B: Profit of C = C1*T1: C2*T2: C3*T3.

If three partners invest capital in the ratio C1: C2: C3 and earn a profit in the ratio P1:P2: P3, the ratio of the
time for which they have invested capital is given by:

𝑃1 𝑃2 𝑃3
T1: T2: T3= : : .
𝐶1 𝐶2 𝐶3

Questions:

1) A, B and C are partners. They have invested Rs.35000, Rs. 25000 and 10,000 respectively for the same
period. If the total profit is Rs. 18000, find the share of A.

Profit of A: Profit of B: Profit of C = C1*T1: C2*T2:C3*T3

So, Profit of A: Profit of B: Profit of C = C1: C2: C3
= 35000:25000:10000
= [Link]
A's share = (A's ratio/ sum of all three ratios)* total profit

2) Arun, Kamal and Vinay invested Rs. 8000, Rs. 4000 and Rs. 8000 respectively in a business. Arun left after six
months. If after eight months, there was a gain of Rs. 4005, then what will be the share of Kamal?

Profit Ratio Of Arun : Kamal : Vinay = (8,000 x 6) : (4,000 x 8) : (8,000 x 8)

= 48 : 32 : 64
=[Link]

2
Kamal’s Share = X 4005 = Rs 890.
5

3) Simran started a software business by investing Rs. 50,000. After six months, Nanda joined her with a capital
of Rs. 80,000. After 3 years, they earned a profit of Rs. 24,500. What was Simran's share in the profit?

Simran : Nanda = (50000 x 36) : (80000 x 30) = 3 : 4.

4
Simran’s Share = X (24,500) = Rs. 10,500
7
4) A and B started a business in partnership investing Rs. 20,000 and Rs. 15,000 respectively. After six months,
C joined them with Rs. 20,000. What will be B's share in total profit of Rs. 25,000 earned at the end of 2 years
from the starting of the business?

A : B : C = (20,000 x 24) : (15,000 x 24) : (20,000 x 18) = 4 : 3 : 3.

3
B’s Share = X (25,000) = Rs 7500
10

5) A and B started a partnership business investing some amount in the ratio of 3 : 5. C joined then after six
months with an amount equal to that of B. In what proportion should the profit at the end of one year be
distributed among A, B and C?

Let the initial investments of A and B be 3x and 5x.

A : B : C = (3x x 12) : (5x x 12) : (5x x 6) = 36 : 60 : 30 = 6 : 10 : 5.

6) A and B invest in a business in the ratio 3 : 2. If 5% of the total profit goes to charity and A's share is Rs. 855,
the total profit is:

Let the total profit be Rs. 100.

3
After paying to charity, A’s Share = 95 x = 57 Rs.
5

If A's share is Rs. 57, And total profit = Rs. 100, So

(100 × 855)
If A's share is Rs. 855, then total profit = = 1500.
57

7) A, B and C jointly thought of engaging themselves in a business venture. It was agreed that A would invest
Rs. 6500 for 6 months, B, Rs. 8400 for 5 months and C, Rs. 10,000 for 3 months. A wants to be the working
member for which, he was to receive 5% of the profits. The profit earned was Rs. 7400. Calculate the share of
B in the profit.

For managing, A received = 5% of Rs. 7400 = Rs. 370.

Balance = Rs. (7400 - 370) = Rs. 7030.
Ratio of their investments = (6500 x 6) : (8400 x 5) : (10000 x 3)
= 39000 : 42000 : 30000
= 13 : 14 : 10
 14
B’s Share = 7030 X = Rs 2660.
37

8) Three partners shared the profit in a business in the ratio 5 : 7 : 8. They had partnered for 14 months, 8
months and 7 months respectively. What was the ratio of their investments?

Let their investments be Rs. x for 14 months, Rs. y for 8 months and Rs. z for 7 months respectively.
Then, 14x : 8y : 7z = 5 : 7 : 8.

14𝑥 5 14𝑥 5
Now = & =
8𝑦 7 7𝑧 8

49𝑥 16𝑥
Y= &z=
20 5

49𝑥 16𝑥
X: Y: Z = X: : = [Link].
20 5

9) The profit – sharing ratio of A to B is 4 : 11. If A invests 12000 rupees on the first day of the business, what
should B invest after 6 months to maintain the profit – sharing ratio.

The profit – sharing ratio = 4 : 11 The investment of A = 12000 for 12 months

Let the investment of B be x rupees for 6 months.
(12000 * 12) : (6*x) = 4 : 11
144000 / 6x = 4 / 11
X = 144000 / 24 * 11 = 66000 rupees.

10) A began a business with Rs. 85,000. He was joined afterwards by B with Rs. 42,500. For how much period
does B join, if the profits at the end of the year are divided in the ratio of 3 : 1?

Suppose B joined for x months. Then,

85000 𝑋 12 3
Then =
42500 𝑋 𝑥 1

X = 8.
So B joined for 8 months.
 Simple interest

The borrower has to pay interest according to some percent(interest rate) of principle for
the fixed period of time. This percentage is known as Interest Rate. For example, the rate
of interest is 10% per annum means the interest payable on Rs 100 for one year is Rs
10.

Some Basic Formulas

If A = Amount P = Principle
I = Interest
T = Time in years
R = Rate of interest per year, then Amount = Principle + Interest
A=P+I

Compound Interest

In Compound Interest, every year interest value is added to principle and then interest is
calculated on the amount.
To understand compound interest clearly, let’s take an example.
Ram borrowed Rs 1000 from Sham for 3 years. What will be the interest value ?
 Year Principle Interest Amount
(10%)
1st 1000 100 1100
2nd 1100 110 1210
3rd 1210 121 1331

Some Basic Formulas

If A = Amount
P = Principle
C.I. = Compound Interest
T = Time in years
R = Interest Rate Per Year

Shortcut Formulas
If rate of interest is R1% for first year, R2% for second year and R3% for third
year,
Then

Rule
If principle = P, Rate = R% and Time = T years, then
1. If the interest is compounded annually:

2. If the interest is compounded half yearly (two times in year):

3. If the interest is compounded quarterly (four times in year):

Example 1:
Find the simple interest on Rs. 7000 at 50/3% for 9 months.
Solution:
𝑃×𝑅×𝑇 7000×50×9
S.I. = = = 875
100 100×12×3

Example 2:

If A lends Rs.3500 to B at 10% p.a. and B lends the same sum to C at 11.5% p.a.,
then the gain of B (in Rs.) in a period of 3 years is

Solution:
3500 × 11.5 × 3 3500 × 10 × 3
Gain of B = −
100 100

= 157.50
Example 3:
An automobile financier claims to be lending money at simple interest, but he
includes the interest every six months for calculating the principal. If he is charging
an interest of 10%, the effective rate of interest becomes:

Solution:
Let the sum be Rs.100 , then
100×10×1
S.I. for first 6 months = Rs.[ ] = Rs.5
100×2
105×10×1
S.I. for last 6 months = Rs. [ ]= Rs. 5.25
100×2
So, amount at the end of 1 year = Rs. (100 + 5 +5.25) = Rs.110.25
 So, effective rate = (110.25 - 100) = 10.25%
Example 4:

A lent Rs. 5000 to B for 2 years and Rs. 3000 to C for 4 years on simple
interest at the same rate of interest and received Rs. 2200 in all from both
of them as interest. The rate of interest per annum is:

Solution:
Let the rate be R% per Annum
5000×2×𝑅 3000×4×𝑅
Then [ ]+[ ] = 2200
100 100
∴100R + 120R = 2200
2200
R= = 10
220
So, rate = 10%

Example 5:

A sum of Rs. 725 is lent in the beginning of a year at a certain rate of interest.
After 8 months, a sum of Rs. 362.50 more is lent but at the rate twice the
former. At the end of the year, Rs. 33.50 is earned as interest from both the
loans. What was the original rate of interest?

Solution:
Let the original rate be R%. Then, new rate = (2R)%
Note: Here original rate is for 1 year (s); the new rate is for only 4 months, i.e
1
year
3

725×1×𝑅 362.50×1×2𝑅
So, [ ]+[ ] = 33.50
100 100×3
(2175 + 725)R = 33.50 × 100 × 3
(2175 + 725)R = 10050
(2900)R = 10050
R= 3.46
Example 6 : What is the difference between the compound interests on Rs. 5000 for
1
1 years at 4% per annum compounded yearly and half-yearly?
2

Solution:
1
4 ×4
2
C.I. when interest compounded yearly = 𝑅𝑠. [5000 × (1 + ) × (1 + 100)]
100

26 51
= 𝑅𝑠. (5000 × × )
25 50

= Rs. 5304.
2 3
C.I. when interest is compounded half-yearly = 𝑅𝑠. [5000 × (1 + ) ]
100

51 51 51
= 𝑅𝑠. (5000 × × × )
50 50 50
= Rs. 5306.04
Difference = Rs. (5306.04 - 5304) = Rs. 2.04

Example 7 : The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347.
The period (in years) is:

Solution: Amount = Rs. (30000 + 4347) = Rs. 34347.

Let the time be n years.

7 𝑛
Then, 30000 (1 + ) = 34347
100

107 n 34347 11449 107 2

⇒( ) = 30000 = 10000 = (100)
100

n = 2 years.

Example 8 : At what rate of compound interest per annum will a sum of Rs. 1200
become Rs. 1348.32 in 2 years?
Solution: Let the rate be R% p.a.

𝑅 2
Then, 1200 x (1 + ) = 1348.32
100

𝑅 2 134832 11236
⇒ (1 + ) = =
100 120000 10000

𝑅 2 106 2
(1 + 100) = (100)

𝑅 106
⟹ 1+ =
100 100

⟹ R = 6%

Example 9 : Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2
years at compound interest rate 5 p.c.p.a. How much amount will Albert get on
maturity of the fixed deposit?

Solution:

5 2
Amount = Rs. [8000 × (1 + ) ]
100

21 21
= 𝑅𝑠. (8000 × × )
20 20

= Rs. 8820.
 EXERCISE:
1. A sum of money at simple interest amounts to Rs. 815 in 3 years and to
Rs. 854 in 4 years. The sum is:
a) Rs. 650 b) Rs. 690 c) Rs. 698
d) Rs. 700 e) None of these

2. Mr. Thomas invested an amount of Rs. 13,900 divided in two different

schemes A and B at the simple interest rate of 14% p.a. and 11% p.a.
respectively. If the total amount of simple interest earned in 2 years be Rs.
3508, what was the amount invested in Scheme B?
a) 6400 b) 6500 c) 7200 d) 7500

3. How much time will it take for an amount of Rs. 450 to yield Rs. 81 as
interest at 4.5% per annum of simple interest?
a) 3.5 years b) 4 years c) 4.5 years d) 5 years

4. Reena took a loan of Rs. 1200 with simple interest for as many years as the rate of
interest. If she paid Rs. 432 as interest at the end of the loan period, what was the rate of
interest?
a) 3.6 b) 6 c) 18 d) Data indequate

5. A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of

simple interest. What is the rate of interest?
a) 3% b) 4% c) 5% d) 6%

6. An amount of Rs.1,00,000 is invested in two types of shares. The first

yields an interest of 9% p.a. and the second, 11% p.a. If the total interest
3
at the end of one year is 9 %, then the amount invested in each share
4
was :
a) Rs.52,500, Rs.47,500 b) Rs.62,500, Rs.37,500
c) Rs.72,500, Rs.27,500 d) Rs.82,500, Rs.17.500
e ) None of these

7. The compound interest on a sum of money for 2 years is Rs.832 and the simple interest
on the same sum for the same period is Rs.800. The difference between the compound
Interest and the simple interest for 3 years will be;
a) Rs.4 b) Rs.66.5 c) Rs.98.56 d) Data inadequate e) None of these
8. On a sum of money, the simple interest for 2 years is Rs.660, while the compound
interest is Rs.696.30, the rate of interest being the same in both the cases. The rate of
interest is :

a) 10% b) 10.5% c) 12%

d) Data inadequate e) None of these

9. A lends Rs.2500 to B and a certain sum to C at the same time at 7% p.a. simple
interest. If after 4 years, A altogether receives Rs.1120 as interest from B and C,
then the sum lent to C is :
a) Rs.700 b) Rs.1500 c) Rs.4000
d) Rs.6500 e) None of these

10. If a sum of money at simple interest doubles in 6 years, it will

become 4 times in :
a) 12 years b) 14 years c) 16 years
d) 18 years e) None of these

ANSWERS :
1) C 2) A 3) B 4) B 5) D 6) B 7) C 8) E (11%) 9) B 10) D