BANK & INSURANCE (PROFIT LOSS AND DISCOUNT) PART 1

Total Questions: 70

11. The profit earned when a book is sold for Rs. 600 is thrice the profit earned when the same book is sold for Rs. 400. What should be the selling price if seller wants to earn 60% profit?

Correct Answer: (d) Rs. 480
Solution:Let the cost price be x.
ATQ, 600 - x = 3(400 - x)
2x = 600
x = 300
Therefore, selling price to earn 60% profit
= 300 × 1.6 = Rs. 480

12. Arun bought an old computer and spent Rs. 110 on its repairs. He then sold it to Bhola at a profit of 20%. Bhola sold it to Chandan at a loss of 10%. Chandan finally sold it for Rs.1188 at a profit of 10%. How much did Arun pay for the article?

Correct Answer: (b) Rs. 890
Solution:Let the sum of the amount paid and the amount spent on repairs by Arun be x.
Selling price of computer for Arun = 1.2x
Selling price for Bhola = 1.2x × 0.9 = 1.08x
Selling price for Chandan = 1.08x × 1.1
= 1.188x = 1188
x = 1000
Amount paid by Arun = 1000 - 110 = 890

13. Sumit bought a book from flipkart at Rs. 500 but flipkart also charged an additional, Rs. 25 for packaging and Rs. 50 for delivering the book. For what amount Sumit should sell his book to get a profit of 16%?

Correct Answer: (a) Rs. 667
Solution:Total cost price (C.P) of book
= 500 + 25 + 50 = Rs. 575
Therefore, selling price of book to earn 16% profit
= 116% of C.P.
= 116/100 × 575 = Rs. 667

14. I bought two houses in Mumbai, the total cost was Rs. 7 crore. Later on, I sold the first house at a profit of 15% and the second house at a loss of 5 %. Thus the total gain was 12 %. The selling price of the first house is:

Correct Answer: (c) Rs.6,84,25,000
Solution:Let cost of 1st house be Rs. x crore.
Cost of 2nd house is Rs. (7 - x) crore
Selling price of 1st house = 1.15x
Selling price of 2nd house = 0.95(7 - x)
Total gain is 12% of 7 crore = Rs. 0.84 crore
Total Selling price of two houses = Rs. 7.84 crore
1.15x + 6.65 - 0.95x = 7.84
0.2x + 6.65 = 7.84
0.2x = 1.19 => x = 5.95
Thus, Selling price of 1st house = Rs. 6.8425 crore or Rs. 6,84,25,000.

15. The cost of accessories of a car is 25% of the cost of the car itself. The cost of car is increased by 40% but the cost of accessories decreases by 60%, then what is the percent change in the cost of car with accessories, if the cost of car with accessories is equal to the sum of the cost of car and cost of accessories?

Correct Answer: (c) 20%
Solution:Let the cost of car be Rs. 100, then the cost of accessories = Rs. 25.
So the total cost of car with accessories = Rs. 125.
Now, the new cost of car = Rs. 140 and the new cost of accessories = Rs. 10.
Therefore, the new cost of car with accessories = Rs. 150.
Percentage change in cost of car with accessories = 25/125 × 100 = 20%

16. A trader cheats both his supplier and customer by using faulty weights. When he buys from the supplier, he takes 30% more than the indicated weight. If he sells at cost price (i.e. charges the cost price of the indicated weight), what is his profit percent?

Correct Answer: (d) 85.71%
Solution:

Let the quantity to be bought by trader be 100 gms for Rs. 100
Actual quantity taken = 130 gms for Rs. 100
Quantity to be sold be 100 gms for Rs. 100
Quantity sold for Rs. 100 is 70 gms
sp of 1gm = 10/7
cp of 1gm = 10/13
10/7 - 10/13
Profit % = ((10/7 - 10/13)/10/13) × 100
= 85.71%

17. The cost of packaging of apples is 20% of the cost of the apples themselves. The cost of apples is increased by 40% but the cost of packaging decreases by 50%, then what is the percent change in the cost of packed apples, if the cost of packed apples is equal to the sum of the cost of apples and cost of packaging?

Correct Answer: (b) 25%
Solution:Let the cost of apples be Rs. 100
Cost of packaging the apples = 20% of 100 = Rs. 20
Total cost of packed apples = 100 + 20 = Rs. 120
Now, the new cost of apples = 1.4 × 100 = Rs. 140
New cost of packaging the apples = Rs. 10
New total cost of packed apples = 140 + 10
= Rs. 150
Percentage change in cost of packed apples
= (150 - 120)/120 × 100
= 30/120 × 100 = 25%

18. A camera was sold at a profit of 5%. If its cost price was 10% less and it was sold for Rs. 15 more, the gain would have 25%. Find the cost price of the camera?

Correct Answer: (a) Rs. 200
Solution:Let cost price be Rs. x
((105x/100 + 15) - 90x/100) = (90/100) × (25/100)
4(1.05x + 15 - 0.9x) = 0.9x
4(0.15x + 15) = 0.9x
0.9x - 0.6x = 60
x = 60/0.3 = 200

19. Virat bought two books for an unknown amount S. He sold book A at 30% profit and book B at 30% loss. In the whole deal, he lost Rs. 30. What is the original cost of book B so that when he sells book B for a 20% loss, he experiences no profit and no loss in the whole deal?

Correct Answer: (b) Rs. 300
Solution:Let x be the cost of Book A and ‘y’ be the cost of Book B. Then the following equations can be written:
(i) x + y = s
(ii) 1.3x + 0.7y = s - 30
(iii) 1.3x + 0.8y = s
We have three equations and three unknowns.
Solving, we get x = 200, y = 300 and s = 500.
Therefore, the cost of Book B is Rs. 300. Hence, option b

20. A shopkeeper has 500 kg of wheat. He sold the whole wheat in two parts, one part of x kg at 8% profit and the rest of y kg at 18% profit. He gains 14% on the whole deal. y is greater than x by what percent?

Correct Answer: (b) 50%
Solution:

By the rule of allegation, we have:
8% 18%
\ /
14%
/ \

x = (18 - 14) = 4 y = (14 - 8) = 6
Ratio of 1st and 2nd parts = 4:6 = 2:3
Quantity of first kind = x = (2/5 × 500) = 200kg
Quantity of second kind = y = (3/5 × 500) = 300kg
Percentage difference = (100/200) × 100 = 50%