Table of Contents

Chapter Pg.
Topic
No No.

1. Percentage
1.1 Percentage 1

S 1.2 Basic Percentage Terms 1

1.3 Percentage Basic Solved Examples 4
P ,P L 1.4 Important Percentage Formulae 6

i
nEx
amsAf
ter+2 1.5 More Solved Examples 8
2. Profit & Loss
2. 1 Profit & Loss 12
2. 2 Important Profit & Loss Formulae 13
2.3 Solved Examples 16
Chapter 1: Percentage = 
3 3
100 = 37.5 %
8 8

1.1 Percentage 2. Percent to Fraction: Reversing the earlier operation

A decimal fraction is one in which the denominator of the will convert a percent to a fraction - i.e. divide the
fraction is a power of 10 i.e. 10, 100, and 1000 etc. That percent by 100.
decimal fraction which has 100 as its denominator is e.g. 40 % = 40 = 0.4,
100
known as Percentage. The numerator of such a fraction 55 % = 55
= 0.55 = 55: 100
is known as Rate Per Cent. 100
(ii) Percentage Increase or Decrease of a Quantity:
15 % and 15 mean one and the same quantity. Any
100 Here, one point is to be noted, that the increase or the
number written in the form of a fraction with 100 as the decrease is always on the original quantity. If the
denominator is a percentage. increase or decrease is given in absolute and the %age
e.g. 13 = 1300 = 1300 %, increase or decrease is to be calculated, then the
100
following formula is applied to do so.
3
= 60
= 60 %,
5 100
%increase /decrease= Quantity Increase or Decrease
 100
62 .5
= 62.5 % Original Quantity
100
XY
The point worth remembering is that the denominator is
Alternatively, X % of a number Y = the ORIGINAL QUANTITY.
100
e.g. 16 2
% of 300 = 50
 300
= 50 Illustration: The salary of a man goes up from Rs 100 to
3 3 100
Rs 125. What is the percentage increase in his salary?
1.2 Basic Percentage Terms
Sol. Increase = 125 – 100 = Rs. 25.
(i) Conversion from a Fraction to Percent and vice versa
% increase = 25  100 % = 25 %
100
1. Fraction to Percent: Multiply the fraction by 100 to
convert it into a percent.
e.g. 0.2 = 0.2  100 = 20 %

1 2
 Alternatively, if the salary of the same man had
been reduced from Rs. 125 to Rs 100, what is the
percentage decrease in his salary?
Decrease = 125 – 100 = Rs. 25
% decrease = 25  100 % = 20 %.
125
Note that for the same quantity of increase or decrease
the % increase and % decrease have two different
answers. The change in the denominator – which is the
original value changes in the above two situations and
hence the difference.
(iii) To Increase a Number by x %:
If a number is increased by 10 %, then it becomes 1.1
times of itself.
If a number is increased by 20 %, then it becomes 1.2
times of itself.
If a number is increased by 30 %, then it becomes 1.3
times of itself.
If a number is increased by 40 %, then it becomes 1.4
times of itself.
(iv) To Decrease a Number by x %:
If a number is decreased by 10 %, then it becomes 0.90
times of itself.
If a number is decreased by 20 %, then it becomes 0.80
times of itself.

3
If a number is decreased by 30 %, then it becomes 0.70 2. What percentage is Rs 13 out of a total sum of Rs
times of itself. 65?
If a number is decreased by 40 %, then it becomes 0.60
Sol. 13
 100 = 20 %
times of itself. 65
3. A student obtained 82.5 % marks in a certain
(v) Equivalent Percentages of some commonly used
examination. If the maximum marks is 600 find the
Fractions:
total marks obtained by her.
1 50 % 3 75 % 2
22 2 %
2 4 9 9
Sol. 82 .5
 600 = 495
1
33 1 % 4 80 % 1 2
6 %
100
3 3 5 15 3 4. The annual sales of company X were Rs 72,000 in
1 25 % 1
12 1 % 1 5% fiscal year 94-95 and Rs 84,000 in fiscal 95-96.
4 8 2 20
1 20 % 1
8 %
1 1 4% What was the % increase in turnover?
5 12 3 25
1 2 3 1 1 2% Sol. Here Increase = 84,000 – 72,000 = 12,000
16 % 37 2 % 12,000  100
6 3 8 50 % Increase = = 1
100 = 16.67 %
72,000 6
2 40 % 5
62 1 % 4 1
133 3 %
5 8 2 3
5. The price of a Sajaj Scooter is Rs 25,000 which is
3 60 % 7
87 1
% 5
125 % 20 % lesser than a SMS Scooter. What is the price
5 8 2 4
2 2 1 11.11 % 6
120 % of a SMS Scooter?
3 66 % 9 5
3
Sol. Here note that the % given is defined in terms of
1.3 Percentage Basic Solved Examples the price of SMS Scooter and not Sajaj Scooter.
Computing the price of SMS as 1.2 times Sajaj’s
1. What is 25 % of Rs 50?
price will give incorrect answer. The data given is
Sol. 25
 50 = Rs 12.5 100  20 
SMS = Sajaj = 25,000
100 100

4 5
 SMS = 25,000  100 = Rs 31,250.
80
Or you can simply do 25,000
= 31250
0 .8
(20% less means it is 0.80 times of the other one)

1.4 Important Percentage Formulae

(i) Salary/Weight/Income More.
If A’s income is R % more than B, then B is income
is less than that of A by 100  R %. Given below
100  R
are some of the important results in that context
(ii) Salary/Weight/Income Less.
If A’s income is R% less than B, then B’s income is
more than that of A by 100  R %.
100  R
Given below are some important results in that
context.
If A is 16 2 % less than B, then B is 20 % more than A.
3
If A is 20 % less than B, then B is 25 % more than A.
If A is 25 % less than B, then B is 33 1 % more than A.
3
Note: If the question is - the price of a commodity is
increased by R %, by what percent its consumption
should be decreased, so that the total expenditure
remains the same. Then the way to solve such
question is the same. I.e. if the price is increased

6
 100  R in population growth (things like cattle
then consumption should be decreased by .
(100  R )
population, steel production output growth). In this
If the price is decreased, then consumption should
section, we will be primarily concerned with
100  R
be increased by compound growth related to population.
(100  R )
(iii) Increase and Decrease by the same % age. If P is the population of a country and if it grows at
If a number is increased by R %, then this number is r % per annum, then the population after n years
n
decreased by R %, then in total there would be a will be A = P 100  r 
 100 
R2
decrease of %.
100 1.5 More Solved Examples
(iv) Increase and Decrease by different% age. 6. The price of rice increases by 30 %. In order to keep
If a number is decreased by X %, then this is again the expenses on rice constant as before, by what
increased by Y %. Then the total increase in the percentage should a person cut down his
number will be X+Y+ XY . consumption?
100
The above-mentioned formula is very important. It Sol. Here apply the formula
100  R
(the price has
has its application in so many other questions. In (100  R )

case instead of increase, there is a decrease, increased)

simply put a negative value in its place. You will get Consumption should be reduced b y
100  30 1
the right answer, even when both the decreases are  23 %
(100  30) 13
given. What you will get after solving the formula, if
it is positive, there is an increase, and if it is 7. Tom’s income is 20 % less than Jerry’s. How much
negative, there is a decrease. is Jerry’s income more than Tom’s?
(v) Compound Growths. 100  R
Sol. Apply the formula (income is R% less)
(100  R )
Typically compound growths are used in 100  20
investment growth analysis (compound interest) or Jerry’s income is more by = 25 %
(80)

7 8
8. A traveling salesman carried 75 % of his money in
traveler’s cheque’s and 25 % in cash. During one of
his journeys, he lost his entire cash and spent from
his traveler’s cheques. On completion of the
journey, he returned 30% of the traveler’s cheques,
which amounted to Rs 180. What was the total
money that he carried?
Sol. 30 % of TC = Rs 180
100 % of TC s = 100  180 = Rs 600
30
Since TC s accounted for 75% of the total money
that he had carried, the total money that he carried
100
is  600 =Rs 800
75
9. A number is increased by 20%, then it is decreased
by 30%, what is the net change in the number?
Sol. Using the formula XY
XY
.  20  (30)  20  30 = -16.
100 100
This means there is a decrease of 16%.
10. A square is converted into a rectangle by
increasing one of its sides by 5 % and reducing the
other by 5 %. What will be the % change in the
area of the two figures?
Sol. Let the side of the square = a

9
 Its area = a2 ; When the square is being converted Sol: Let the registered votes = X
to a rectangle, the length becomes 1.05a and the A got 48 8 9 % of X = 440 9 % of X = 4 .4
9
X
width becomes 0.95a.  New area = 1.05a  0.95a Since A got 400 votes more than B, B got 4 .4 X–
= 0.9975a2
9
400
Change in area = a decrease of 0.0025a2
Total votes registered = X = A + B + Invalid votes
0.0025a 2  100
% decrease in area = = 0.25 % X = 4.4 9 X + 4.4 9 X – 400 + 500  X = 8.8 9 X + 100
a2
 X = 4500. Since the poll turnout was only 90%,
11. If the population of a town is 231525 and it has
the total number of eligible voters = 100  4500 =
been growing annually at 5 %, what was the 90

population 3 years ago? 5000

Number of votes A got = 4 .4  4500 = 2200
Sol. Let the population three years earlier be X 9
3 Number of votes B got = 2200 – 400 = 1800.
X ×  100  5  = 231525  X × 105  105  105  = 231525
 100  100 100 100  13. It was annual performance incentive time at Motak
 X ×  20  20  20  = 231525 Kahindra. A’s incentive was 10% less than B, B’s
 21 21 21 
was 33 1 3 % more than C and C’s was 16 2 3 % less
X = 231525   20  20  20  = 200,000
 21 21 21  than D. What is D’s incentive as a % of A’s
12. In an election there were two candidates A and B. incentive?
The poll turnout was only 90 %. 500 of the Sol: A = 0.9 B = 9/10B,
registered votes were declared invalid. A won by a B = 10/9 A.
margin of 400 votes and got 48 8 9 % of the registered B = 1.333 C = 4/3C,  C = 3/4B = 3/4  10/9 A
votes. Find the total number of eligible voters and C = 5/6 D,
the number of votes received by each of the  D = 6/5C = 6/5 3/4 10/9A = A.
candidates. Therefore, D’s incentive is 100 % of A’s or is equal
to A’s.

10 11
Chapter 2: Profit & Loss  Loss: When the selling price is less than the cost
price there is loss in the transaction. The excess of
2.1 Profit & Loss cost price over the selling price is the loss in the
 Cost Price (CP): All overhead expenses such as transaction.
transportation, taxes etc. are also included in the LOSS = COST PRICE – SELLING PRICE
cost price. E.g. The cost price of a score of mangoes is Rs. 220. The
fruit vendor retails each mango for Rs. 10, then
 Selling Price (SP): The sum of money, which is
Cost price = Rs. 220 / score = Rs. 11 / mango
finally received for the product.
(1 score = 20 nos.)
 Marked Price (MP): The price, which is listed or Selling price = Rs. 10 / mango
marked on the product, this is also known as  Loss = Rs. 11 – Rs. 10 = Re. 1 per mango
printed price/quotation price/invoice
Note: Profit and loss percentage is always calculated on
price/catalogue price.
cost price, unless otherwise specified.
 Profit: There is gain in a transaction if the selling
2.2 Important Profit & Loss Formulae
price is more than the cost price. The excess of the
selling price to the cost price is the profit in the  % Profit:
transaction. % Pr ofit  100 
Profit
Costprice
PROFIT = SELLING PRICE – COST PRICE  % Loss:
E.g. Let the cost price of a quintal of rice be Rs 1000 and % Loss  100 
Loss
the shopkeeper sells a kg of rice for Rs 12.5, then Cost Costprice

price = Rs 1000 / quintal = Rs 10/kg as 1 quintal = 100 kg  Equal % profit & loss on the same selling price of
Selling price = Rs 12.5 / kg. two articles:
 Profit = Rs 12.5 – Rs. 10 = Rs 2.5 / kg or Rs 250 per If two items are sold each at Rs X, one at a gain of
quintal P% and the other at a loss of P %, then the two

12 13
 transactions have resulted in an overall loss of Cash Discount is usually offered on the net price (the
2
P
% price after subtracting discount from the marked price).
100
2  P2  X Therefore, Cash Price = Net Price - Cash Discount
The absolute value of the loss = Rs
100  P Note: Cash discount is always calculated on net price,
2 2

 Equal % profit & loss on the same cost price of two unless otherwise specified.
articles:  Wrong Weight: When a tradesman professes to sell
If the cost price of two items are X, and one is sold at a at cost price, but uses a false weight, then the
profit of p % and the other at a loss of p %, then the two percentage profit earned
transactions have resulted in no gain or no loss. 100  Error

True weight  Error
 Trade Discount: To attract customers it is a
common practice to announce discount on the  Successive Discounts: When a tradesman offers
marked price of an article. more than one discount to the customer, then
Note: The discount is always taken as a % of the marked sometimes you need to calculate the single
price only unless otherwise specified. discount, which is equal to the two discounts
given. There you can apply the method of decimals
E.g. suppose the list price of an article be Rs. 450. A learned in the concepts of percentages. e.g. a
discount of 5 % on its list price is announced. tradesman offers two successive discounts of 20%
Therefore, the new selling price = 95
100
 450 = Rs 422.5 and 10 %, which single discount is equal to these
two successive discounts.
 Cash Discount:
You can apply the principle, that after the first discount
In addition to trade discount, the manufacturer may offer
of 20 % the remaining price is 0.8 and after the second
an additional discount called the Cash Discount if the
discount of 10 %, the remaining part is 0.9.
buyer makes full payment within a certain specified time.
Net the remaining part is 0.8  0.9 = 0.72

14 15
 the discount is 1 – 0.72 = 0.28 i.e. 28 %. 2. Raj purchased two watches at the same price and
Or a straight method can be applied for two discounts. sold one at a profit of 10 % and the other at a profit
of 12.5%. If the difference between the two selling
Single discount, which is equal to two successive price is Rs 15, what is the cost price of each of the
discounts of m % and n % =  m  n  m 
% watches?
 100 
Sol: Let the cost price of the watches = 100
When the SP of x articles is equal to CP of y articles, what is
The selling price of the first watch = 110 and
the profit percent earned?
The selling price of the second watch = 112.5.
100  difference in x and y
Profit percent = . The difference in the selling price = 2.5 if the cost
X
price = 100
2.3 Solved Examples  If the difference in selling price = 15, the cost

1. A cloth merchant bought 20 shirts, each at a price price = 100 2.5  15 = 600
of Rs 180. He paid Rs 100 as octroi charges for 3. A retail fruit vendor buys pineapples at a score for
bringing them into Pune. He sold each of them for Rs 175, and retails them at a dozen for Rs 114. Did
Rs 203.50. Find his percentage profit. he gain or lose in the transaction and what % was
Sol: Total cost = cost of 20 shirts + Rs 100 (Octroi) his gain or loss?
= 20  180 + 100 = 3700 Sol: C.P = Rs.175/score
 Cost / Shirt = 3700 = 185.  C.P/Pineapple = 175 = 8.75 (Note: 1 score = 20
20
20
Selling price = 203.50.  Profit = 203.5 – 185 = nos.)
18.50 S.P = Rs.114/dozen
 % Profit = 18.50  100 = 10 %
 S.P/Pineapple = 114 = 9.5
185 12
Profit = 0.75.
 % Profit = 0.75  100 = 8 4 %
8.75 7

16 17
4. A man sells two tables at the same price. On one Sol: C.P (1.1) = 935.  C.P = 935
1.1
= 850
he makes a profit of 10 % and on the other he If selling price = Rs.807.50, then loss = 850 –
makes a loss of 10 %. Find his total loss / gain in 807.50 = 42.50
these two transactions. If the selling price of the % Loss = 42.5 850  100 = 5 %
tables was Rs 1000 each, what was the profit /
loss in Rs and what was the cost price of each of 6. Profit obtained by selling a wristwatch at Rs 160 is
the tables? equal to 7/5th of the profit obtained by selling the
same wristwatch at Rs 150. What is the cost price
Sol: Net loss = 10 = 1 % loss
2
100% of the watch?
If the selling price = S.P, the amount of loss =
Sol: Let the cost of a watch be x  (160 - x) = 7
× (150 -
2  p2  S.P 5
 As the selling price = 1000,
100 2  p2 x) 800 – 5x = 1050 – 7x.  2x = 250  x = Rs.125
loss = 2  10 2  1000
= 2000 99 = 20 20 . 7. A merchant buys 20 kgs of rice at Rs 1.50 / kg, and
100 2  10 2 99
another 40 kgs of rice at Rs 0.90 / kg. He mixes
Cost price of the item sold on profit
them and sells one third of the mixture at Re 1/ kg.
C.P (1 + 0.1) = 1000.
At what price should he sell the remaining mixture
C.P = 1000 1.1 = 909 111
to get an overall profit of 25 %?
Cost price of the item sold on loss
Sol: Total cost for the entire quantity of rice = 20  1.5 +
C.P (1 – 0.1) = 1000.
 C.P = 1000 = 1111.11
40  0.9 = 66
0 .9 If his profit is 25 % then the sales realization = 1.25
5. A floppy disc drive is sold for Rs 935 at a profit of  66 = 82.50

10 %. What would have been the actual profit or He sells 20 kgs at Re 1/kg = Rs.20.
loss if it had been sold at Rs 807.50?

18 19
 Therefore to make the said amount of profit, he 10. 5/8th of 160 chairs were sold at a profit of Rs. 25
should sell the remaining 40 kgs of rice at (82.50 - each and the rest for Rs. 8,200. If the seller makes
20) = Rs.62.50 a profit of 25 % on the whole transaction, what is
 The selling price of a kg of rice for the remaining the cost price of each of the chairs?
40 kgs = 62.5 40 = 1.5625 Sol: 100 chairs were sold at a profit of Rs.25 each.
8. 2000 copies of a book are printed at Rs 8000. What  Profit on these 100 chairs = 2500
should be the list price if the publisher wishes to S. P. of all 160 chairs = C. P. of 100 chairs + Profit
make a 50 % profit after giving a 20 % discount on on 100 chairs + S. P. of 60 chairs = 100  C.P +
the list price to the retailer? 2500 + 8700 = 100  C. P. +10700
Sol: C.P per book = 4 But these 160 chairs were sold at a profit of 25 %.
 S. P. = 1.25  C.P
Profit to be made = 50 %  S.P = 1.5  4 = 6
 160  1.25  C.P = 100  C. P. + 10700
Rs. 6 should be the net price to the publisher after
 200 C.P = 100 C.P + 10700  C. P. = 107.
a 20 % discount on the list price.
I.e. List price  0.8 = 6  List price = 6/0.8 = Rs. 7.5 11. If an article is sold at a loss of 66 2/3%, what is the
9. What should each of the sixty T - Shirts be sold at, loss in terms of the selling price?
the cost of each of which is Rs.25, so as to get a Sol: Let the C. P. = 100.  Amount loss = 66 2/3
profit equal to the selling price of 10 of them?  S. P. = 100 – 66 2/3 = 33 1/3
 Loss expressed in terms of S. P.
Sol: S.P. of 10 T – Shirts = S.P of 60 T – Shirts – C.P. of
66 2
60 T – Shirts = 3  100 = 200 %
10 S.P. = 60 S.P – 60  25 33 1
3
50 S.P = 1500  S.P = Rs. 30 12. Arun buys a camera for Rs 6000 and sells it to
Kumar at a profit of 20 %. After some time Kumar
sells it back to Arun at a loss of 10 %. How much

20 21
 did Arun gain in the whole transaction and what Sol: C. P. of 1000 articles = Rs.850
was the % gain in terms of his original cost? The vendor makes 40 % profit.
 S. P. = 1.4 C.P = 1.4  850 = 1190.
Sol: Transaction I: S. P. of Arun = C. P. of Kumar = 1.2 
6000 = 7200 But as he can sell only 700 out of the 1000, he has
Transaction II: S. P. of Kumar = C. P. of Arun = 0.9 to price the 700 articles in such a way that he gets
 7200 = 6480 Rs.1190
 S.P of an item = 1190 = Rs 1.70.
Therefore net profit to Arun = S. P. A1 – S. P. K2 = 700
7200 – 480 = 720 Therefore, mark up = S. P. – C. P. = Rs 0.85 and %
 % Profit = 720  100 = 12 % mark up = 0.85 0.85  100 = 100 %
6000
(Mark up is always expressed as a % of a cost)
13. A package tour operator allows a 25 % discount on
his advertised price and then makes a profit of 20 15. One tradesman calculates % profit on the buying
%. What is the advertised price on which he gains price and the other on the selling price. Find the
Rs.60? difference between their profits if both of them
claim to make 20 % on their goods sold at Rs.1500
Sol: Profit = Net price – Cost Price = 60
Net price = 1.2 (C. P.)  1.2 C.P – C. P. = 60 Sol: Case I: C. P. (1.2) = 1500.
 0.2 C. P. = 60  C. P. = 300 and Net price = 360.  C. P. = 1250  Profit = 1500 – 1250 = Rs. 250
List price or advertised price  (0.75) = Net price Case II: Profit = 0.2 (S.P) = 0.2  1500 = Rs. 300
 The difference in profit made by each of the
 List price = =
Net.price 360
= 480.
tradesmen = Rs. 50.
0.75 0.75

14. The cost price of each of 1000 articles works out to 16. A manufacturer estimates that on inspection 20 %
be Rs. 0.85. The manufacturer finds that only 700 of the articles he produces are rejected. He
articles be sold. If he fixes the selling price of these accepts an order to supply 20,000 articles at Rs.
700 articles such that he makes a profit of 40 % on 7.50 per item. He estimates the profit on his outlay
his total cost, find the mark up on the cost?

22 23
 to be 20 % after providing for the rejects. Find his 18. Trader A offers a discount of 25 % on the marked
cost of manufacture per article. price for cash purchase. Trader B offers a trade
Sol: S.P = Rs. 7.5 per item discount of 20 % and a cash discount of 5 % on the
 For 20,000 items = 150,000 same article marked at the same price as that of
Minimum no. of items that need to be produced so Trader A. As a buyer whom should I buy from if I
that after providing for 20 % rejection he still has am to pay cash?
20,000 items = 20,000 0.8 = 25,000 Sol: Trader A: If the marked price = 100 then the net
If he makes a 20 % profit, then his cost price = price to the buyer = 0.75  100 = 75.
150,000 Trader B: If the marked price = 100, then the net
1 .2
price
= 125,000  Cost per item = 125,000 25,000 = Rs. 5
= 0.8  100 = 80 and the cash price = 0.95  80 =
17. A man sold Pentium computers at a profit of 6 %. 0.76.
Had he made a loss of 5 % instead due to a price Since the discount is higher or the price to me as a
crash, he would have sold it for Rs 3,850 less. What buyer is lower with Trader A, I should choose to
was his cost price and selling price in each of the buy from Trader A.
instances?
Sol: C. P. (1.06) = S. P.1
C. P. (0.95) = S. P.2
S. P.1 - S. P.2 = 3850
 C. P. (1.06 – 0.95) = 3850
 0.11 C. P. = 3850
 C. P. = 35,000
And S. P.1 = 1.06  35,000 = 37,100 and S. P.2
= 0.95  35,000 = 33,250

24 25