Module 3 · RBI Grade B Quantitative Aptitude

Profit, Loss & Discount

CP/SP, markup, discount.
CP/SP · Markup & Discount
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Learning Objectives

  • Understand the fundamental concepts of Profit, Loss & Discount
  • Apply key formulas and techniques to solve problems
  • Practice with exam-level questions to build speed and accuracy

Key Concepts

What is Profit, Loss & Discount?

Profit and loss is a core commercial arithmetic topic that deals with buying and selling goods. Questions from this topic appear regularly in SSC CGL Tier 1 and involve cost price (CP), selling price (SP), profit percentage, loss percentage, discounts, and marked price (MP).

Key Concepts

1. Basic Formulas: Profit = SP - CP (when SP > CP). Loss = CP - SP (when CP > SP). Profit% = (Profit/CP) * 100. Loss% = (Loss/CP) * 100.

2. Discount: Discount is always calculated on the Marked Price (MP). Discount% = (Discount/MP) * 100. SP = MP - Discount. Alternatively, SP = MP * (100 - d%)/100.

3. Successive Discounts: If two discounts of x% and y% are offered, single equivalent discount = x + y - (xy/100). SP = MP * (100-x)/100 * (100-y)/100.

4. False Weight / Dishonest Shopkeeper: Profit% = [(True Weight - False Weight) / False Weight] * 100. If a shopkeeper sells at cost price but uses a false weight, his profit% is the percentage of the weight difference.

Solved Examples

Example 1 (Basic Profit)
A shopkeeper buys an article for Rs.800 and sells it for Rs.960. What is his profit percentage?

a) 15% b) 18% c) 20% d) 25%
Solution: c) 20%. Profit = 960 - 800 = 160. Profit% = (160/800) * 100 = 20%.
Example 2 (Discount)
The marked price of a shirt is Rs.1200. A 15% discount is offered. What is the selling price?

a) Rs.1000 b) Rs.1020 c) Rs.1050 d) Rs.1080
Solution: b) Rs.1020. Discount = 15% of 1200 = 180. SP = 1200 - 180 = 1020.
Example 3 (Dishonest Shopkeeper)
A shopkeeper sells rice at cost price but uses a weight of 900g instead of 1kg. What is his profit percentage?

a) 10% b) 11.11% c) 12.5% d) 9.09%
Solution: b) 11.11%. Profit% = (1000 - 900)/900 * 100 = 100/9 = 11.11%.

Shortcut Techniques

  • If CP and SP are both given, profit% can be found by dividing profit by CP and multiplying by 100.
  • For "if sold at Rs.x there is a loss/profit of p%" type questions, solve using CP as 100 units.
  • When two items are sold at the same price, one at x% profit and one at x% loss, there is always a net loss of (x^2/100)%.
  • For discount problems, use the formula: MP = SP * 100/(100 - d%) directly.
Pro Tip: SSC CGL frequently asks questions involving "cost price of x items = selling price of y items". Use the ratio method: Profit% = [(x - y)/y] * 100%.

Advanced Applications

Modern exams feature questions combining multiple quantitative concepts. Master these by practicing previous year papers.

Shortcut Methods

Percentages: Use fraction table (12.5%=1/8, 20%=1/5, 25%=1/4). SI/CI: For 2 years, CI-SI = P(r/100)^2. Time Work: Use LCM of time periods. Average Speed: 2ab/(a+b) for equal distances.

Pro Tip
Write key formulas on rough sheet immediately after the exam bell while memory is fresh.

Advanced Applications

Modern exams feature questions combining multiple quantitative concepts. Master these by practicing previous year papers.

Shortcut Methods

Percentages: Use fraction table (12.5%=1/8, 20%=1/5, 25%=1/4). SI/CI: For 2 years, CI-SI = P(r/100)^2. Time Work: Use LCM of time periods. Average Speed: 2ab/(a+b) for equal distances.

Pro Tip
Write key formulas on rough sheet immediately after the exam bell while memory is fresh.

Advanced Applications

Modern exams feature questions combining multiple quantitative concepts. Master these by practicing previous year papers.

Shortcut Methods

Percentages: Use fraction table (12.5%=1/8, 20%=1/5, 25%=1/4). SI/CI: For 2 years, CI-SI = P(r/100)^2. Time Work: Use LCM of time periods. Average Speed: 2ab/(a+b) for equal distances.

Pro Tip
Write key formulas on rough sheet immediately after the exam bell while memory is fresh.

Advanced Applications

Modern exams feature questions combining multiple quantitative concepts. Master these by practicing previous year papers.

Shortcut Methods

Percentages: Use fraction table (12.5%=1/8, 20%=1/5, 25%=1/4). SI/CI: For 2 years, CI-SI = P(r/100)^2. Time Work: Use LCM of time periods. Average Speed: 2ab/(a+b) for equal distances.

Pro Tip
Write key formulas on rough sheet immediately after the exam bell while memory is fresh.

Practice Questions

← Percentage Time & Work →