IBPS Quantitative Aptitude Online Course Chapter 6

This is sixth chapter of IBPS Quantitative Aptitude Online Course. In this chapter I will cover Profit and Loss and Interest. Profit and loss and Interest is an important chapter from exams point of view. You get good amount of questions from this topic.

Candidates also face problem in this topic. So I will be giving some key formulas in easy to understand manner. If you missed chapter 5 then read it from this link.

Click to read chapter 5

Profit and Loss

In below formulas I will be using CP for Cost Price and SP for Sell Price. Cost price is price at which item is bought. Sell price is price at which item is sold.

Formula 1

Profit = SP – CP

Loss = CP – SP

Profit % = 100 * Profit / CP

Loss % = 100 * Loss / CP

SP = [(100 + Profit %) * CP] / 100

SP = [(100 – Loss %) * CP] / 100

CP = (100 * SP) / (100 + Profit %)

SP = (100 * SP) / (100 – Loss %)

Formula 2

If a shopkeeper gives a discount of a% and b% successively on a item price then the final discount is always less than (a+b)%

If a% and b% are two successive discount on an item then the total discount given on the item is

[a + b – (ab/100)]%

Sale Price after two discount of a% and b% is

List Price * [(100-a)/100] * [(100-b)/100]

Formula 3

In false weight problem the percentage profit is given by

Profit % = [{(claimed weight – actual weight) / actual weight} – 1] * 100

For example if shop keeper is using 975 gm weight for 1kg then 1 kg is claimed weight and 975 gm is actual weight.

Formula 4

If a ,b and c are three successive discount on an item then the final discount given on the item is

[100 – (100-a)(100-b)(100-c)]/ (100*100) %

Formula 5

If you buy an item of price x and get an item of price y free then the effective discount you get is

[y/(x+y)]*100

Interest

Formula 1

Amount = Principal + Interest

Simple Interest is given by = PRT/100 where P is principal , R is rate of interest and T is time period

Compound Interest is given by

[P * {(1+ r/100) to the power t} – P]

where P is principal , R is rate of interest and T is time period.

Formula 2

If P is the present population r is the rate on increase in population and you need to find out population after t years then

population after t years = P*(1+ r/100) to the power t

If P is the present population r is the rate on increase in population and you need to find out population before t years then

population before t years = P*(1 – r/100) to the power t

Formula 3

If an item is depreciating at rate or r per year and initial value is P then after t years the value of item will be

value after t years = P*(1 – r/100) to the power t

Formula 4

Simple Interest and Compound Interest is same for first year if the rate of interest R and Principal P are  same.

The difference between compound interest and simple interest after two years is given by

[(P*R*R) / (100*100)]

Formula 5

Annuity is fixed sum of money paid at certain intervals. The interest paid on Annuity will always be  Compound Interest.

So we have covered Interest and Profit loss in this chapter. We will cover remaining topics in the next chapter. Keep reading and sharing.