Jawahar Navodaya Vidyalaya Selection Test (JNVST)

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Profit & Loss: Calculating profit, loss, and percentage profit/loss

🚀 Profit and Loss are essential concepts in mathematics that help us understand how much money we gain or lose in a transaction. These concepts are widely used in daily life, especially in buying and selling goods. Let's explore these concepts with examples from a local Indian market.

Examples💡

Example 1: Ramesh bought a bicycle for Rs. 2000 and sold it for Rs. 2500. To find the profit, we subtract the cost price from the selling price: Profit = Selling Price - Cost Price = Rs. 2500 - Rs. 2000 = Rs. 500. To find the percentage profit, we use the formula: Percentage Profit = (Profit / Cost Price) * 100 = (500 / 2000) * 100 = 25%.
Example 2: Sita bought 10 kg of rice at Rs. 30 per kg and sold it at Rs. 35 per kg. First, calculate the cost price: Cost Price = 10 kg * Rs. 30 = Rs. 300. Then, calculate the selling price: Selling Price = 10 kg * Rs. 35 = Rs. 350. The profit is: Profit = Selling Price - Cost Price = Rs. 350 - Rs. 300 = Rs. 50. The percentage profit is: Percentage Profit = (Profit / Cost Price) * 100 = (50 / 300) * 100 = 16.67%.
Example 3: A shopkeeper bought a batch of notebooks for Rs. 1500 and sold them for Rs. 1200. To find the loss, we subtract the selling price from the cost price: Loss = Cost Price - Selling Price = Rs. 1500 - Rs. 1200 = Rs. 300. To find the percentage loss, we use the formula: Percentage Loss = (Loss / Cost Price) * 100 = (300 / 1500) * 100 = 20%.

Common Mistakes to Avoid⚠️

  • Confusing cost price and selling price, leading to incorrect profit or loss calculations.
  • Forgetting to multiply by 100 when calculating percentage profit or loss.
  • Using the wrong formula for percentage calculations, such as dividing by selling price instead of cost price.