profit loss discount gmat cat

8/3/2019 Profit Loss Discount GMAT Cat

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PROFIT, LOSS & DISCOUNTFOR GMAT CAT

ARPIT

http://www.freegregmatclass.com/
http://www.freegregmatclass.com/http://www.freegregmatclass.com/


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Manufacturer ( i.e. the producer)

Wholesaler (dealer) Retailer (shopkeeper)

Customer

Cost Price The cost incurred by themanufacture or the wholesaler or the retailer( i.e. the person who pass on the goods toanother)


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Selling price The price at which one personpass on the goods to another .

Profit The extra money a person receives byselling a product .

Profit = Selling Price (SP) Cost Price (CP)

Loss The less amount that a person receives

by selling a product.

Loss = CP - SP


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Important Formulae:

Profit Percentage = (Profit/CP) * 100

Loss Percentage = (Loss/CP) * 100

* Profit or loss is always calculated on thebasis of cost price unless otherwise

mentioned in the problem


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Marked Price The price written on the tag ofa product . It may or may not be equal tothe SP, depending upon the discount(available or not).

Discount The amount of money which is tobe paid less on the marked price (MP).

Marked Price = CP + Markup

Selling Price = MP Discount

In general, CP


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Some Important Concepts:

1.) When two articles are sold at same pricebut one of them at a profit & another oneat a loss & the percentage profit is thesame as the percentage loss. In this case

there is always a loss.

Loss (%) = (Common gain or loss/ 10)2


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2.) When a person recovers the cost price of

m articles by selling n articles (n


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CI/SI/ Instalments:

Simple Interest : Fixed rate of interest on principal(initial amount).

Principal: Initial amount invested /loaned/borrowed.

Amount = Principal + Interest

Compound Interest : It is the interest on interestcalculated on each successive period.


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Simple Interest (SI) = (P*R*T)/100

Where,

P= Principal

R= Rate of Interest (%)

T= Time Period

A = P + (P*R*T)/100 [ for SI only ]


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Given (R%) Given (t) Required (R%) Required (t)

R% annual T years r/2 (%) half- yearly 2t

R% annual T years r/4 (%) quarterly 4t

R% annual T years r/12 (%) monthly 12t

Conversion of Time Period Rate of Interest


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Compound Interest (CI) = A- P

Amount (A) = P(1+r/100)t

Difference b/w CI & SI for two years:

= P(r/100)2

Difference b/w CI & SI for 3 years:

= P(r/100)2 (r/100 + 3)


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Population Questions :

P = P0 ( 1 + r/100)n when population increases

P0 is the initial population

P = P0 ( 1 - r/100)n when population decreases


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Installments:

For SIA = [ x + (x + (x*r*1)/100) + (x + (x*r*2)/100) +

..]

Where X = value of each installment


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THANK

YOU

profit loss discount gmat cat

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