###

**Solving Profit and Loss Problems can be quite a challenge in SBI PO and IBPS Exams. So here is a concept that
will simplify this complex topic for you.**

If Profit and Loss Problems scare you, or you just skip problems on Profit and Loss by merely reading the question in exams, then this smart method is for you! It is not a good idea to use the Profit and Loss Formula to solve questions in Banking and SSC Exams since it is time taking and involves a lot of calculations.

This is 4th Smart Method in the series of blog posts about tricks that will help you
solve questions in 5- 10 seconds that would otherwise take 30- 45 seconds.
###
**What is Profit and Loss?**

The price at which an article is purchased by the seller is
called its cost price (CP).
The price at which an article is sold is called its Selling
Price (SP).
Profit or Gain: The
difference between SP and C.P (if SP is greater than CP)
Loss: The difference between CP and SP (if
CP is greater than SP)

Now, this is a list that we all know by heart since childhood
and have sworn by it while solving all profit and loss problems.
###

**List of Formulas used for Solving Profit and Loss Problems**

###
**Example of a Profit and Loss Problem**

Sameer
sold an article Rs 460 and earned a profit of 15%. At what price should it have
been sold so as to earn a profit of 20%?
1) Rs 465 2) Rs 480 3) Rs 498 4) Rs 485 5) None of these

###
**Solving Profit and Loss Problems Using the
Conventional Method**

Your first
reaction on reading any question to solve in Profit and Loss is going to be to
look at the list of Profit and Loss formula and find the formula which has the solution to the
above problem. After you have identified correct one, which is actually the
fifth formula in this case, you will grab a pen and paper and substitute the
values to get the following-
Step
1:
Initial
SP= 460, Initial Profit= 15%
Step
2:
CP=
(100x 460)/ (100+ 15)
Step
3:
CP=
(100x 460)/ 115= 400
Step
4:
Desired
Profit= 20%
Step
5:
Required
SP= (100+ 20)x 400/ 100
Step
6:
(120x 400)/100= 480
No doubt that the Profit and Loss Formula took you to the correct answer but , this
is just too many calculations and so many steps to reach the
answer in 45- 60 seconds. No wonder you don’t look forward to solving problems
in Profit and Loss.

And that big list of Profit and Loss Formula is surely not easy to remember!
###

###
**Solving Profit and Loss Problems without the Profit
and Loss Formula**

Is the above
method recommended? No.. Never..
Time to dump
this almost ancient method! Adopt a smart method to solve profit
and loss problems by using proportionality.
We know that
Initial Profit= 15%, Desired Profit= 20%
Step
1:
Initial
Selling Price= 115%= 460 and Desired Selling Price= 120%?
Using
Proportionality we get:
Step
2:
115:120
:: 460:x
On
cross multiplication we get Desired Selling Price:
Step
3:
(120 x 460)/ 115= 480 which is our answer
Two simple
steps and you get the answer in 5 seconds, no formulae, no calculation just the
simple idea that *an equation of proportionality is written in the form a:b :: c:d when
the two ratios are equal and then solved by cross multiplication. *

No more
struggling with formulae and big calculations. Use this smart method to solve more such questions:

Question 1: Arjun sold an article Rs 1200 and earned a profit of 25%. At what price should it have been sold so as to earn a profit of 30%?

1) Rs 1356 2) Rs 1428 3) Rs 1248 4) Rs 1225 5) None of these

Question 2: Smita sold an article Rs 230 and earned a profit of 15%. At what price should it have been sold so as to earn a profit of 20%?

1) Rs 240 2) Rs 244 3) Rs 200 4) Rs 220 5) None of these

Leave your answers in the comments below and do tell us how long you took to solve these questions.

**Solving Profit and Loss Problems can be quite a challenge in SBI PO and IBPS Exams. So here is a concept that will simplify this complex topic for you.**

If Profit and Loss Problems scare you, or you just skip problems on Profit and Loss by merely reading the question in exams, then this smart method is for you! It is not a good idea to use the Profit and Loss Formula to solve questions in Banking and SSC Exams since it is time taking and involves a lot of calculations.

This is 4th Smart Method in the series of blog posts about tricks that will help you solve questions in 5- 10 seconds that would otherwise take 30- 45 seconds.

This is 4th Smart Method in the series of blog posts about tricks that will help you solve questions in 5- 10 seconds that would otherwise take 30- 45 seconds.

###
**What is Profit and Loss?**

The price at which an article is purchased by the seller is
called its cost price (CP).

The price at which an article is sold is called its Selling
Price (SP).

Profit or Gain: The
difference between SP and C.P (if SP is greater than CP)

Loss: The difference between CP and SP (if
CP is greater than SP)

Now, this is a list that we all know by heart since childhood
and have sworn by it while solving all profit and loss problems.

###

**List of Formulas used for Solving Profit and Loss Problems**

###
**Example of a Profit and Loss Problem**

Sameer
sold an article Rs 460 and earned a profit of 15%. At what price should it have
been sold so as to earn a profit of 20%?

1) Rs 465 2) Rs 480 3) Rs 498 4) Rs 485 5) None of these

###
**Solving Profit and Loss Problems Using the
Conventional Method**

Your first
reaction on reading any question to solve in Profit and Loss is going to be to
look at the list of Profit and Loss formula and find the formula which has the solution to the
above problem. After you have identified correct one, which is actually the
fifth formula in this case, you will grab a pen and paper and substitute the
values to get the following-

Step
1:

Initial
SP= 460, Initial Profit= 15%

Step
2:

CP=
(100x 460)/ (100+ 15)

Step
3:

CP=
(100x 460)/ 115= 400

Step
4:

Desired
Profit= 20%

Step
5:

Required
SP= (100+ 20)x 400/ 100

Step
6:

(120x 400)/100= 480

No doubt that the Profit and Loss Formula took you to the correct answer but , this
is just too many calculations and so many steps to reach the
answer in 45- 60 seconds. No wonder you don’t look forward to solving problems
in Profit and Loss.

And that big list of Profit and Loss Formula is surely not easy to remember!

And that big list of Profit and Loss Formula is surely not easy to remember!

###
**Solving Profit and Loss Problems without the Profit
and Loss Formula**

Is the above
method recommended? No.. Never..

Time to dump
this almost ancient method! Adopt a smart method to solve profit
and loss problems by using proportionality.

We know that
Initial Profit= 15%, Desired Profit= 20%

Step
1:

Initial
Selling Price= 115%= 460 and Desired Selling Price= 120%?

Using
Proportionality we get:

Step
2:

115:120
:: 460:x

On
cross multiplication we get Desired Selling Price:

Step
3:

(120 x 460)/ 115= 480 which is our answer

Two simple
steps and you get the answer in 5 seconds, no formulae, no calculation just the
simple idea that

*an equation of proportionality is written in the form a:b :: c:d when the two ratios are equal and then solved by cross multiplication.*

No more
struggling with formulae and big calculations. Use this smart method to solve more such questions:

Question 1: Arjun sold an article Rs 1200 and earned a profit of 25%. At what price should it have been sold so as to earn a profit of 30%?

1) Rs 1356 2) Rs 1428 3) Rs 1248 4) Rs 1225 5) None of these

Question 2: Smita sold an article Rs 230 and earned a profit of 15%. At what price should it have been sold so as to earn a profit of 20%?

1) Rs 240 2) Rs 244 3) Rs 200 4) Rs 220 5) None of these

Leave your answers in the comments below and do tell us how long you took to solve these questions.

## 0 comments:

## Post a Comment