Profit and Loss: Aptitude Questions with Answers – Free Practice!

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Q. 1 When someone makes a profit from selling a house, they need to pay taxes on the difference between the selling price and the original purchase price. If the profit is 20% or less of the purchase price, the tax rate is 6%. Any profit exceeding 20% of the purchase price is subject to a 10% tax rate. A business family bought a house for 164,000 dollars and sold it 15 years later for 228,000 dollars. How much tax must they pay on the profit?

Check Solution

Ans: B

the profit earned is 64000. Now 20% of this profit will be 12800

taking 6% of 12800 will be 768

Now beyond 20% of 12800 means 80% of 128000.

We will get 0.8 of 128000 as 51200. This amount 51200 is taxed at 10%

0.1 of 51200 = 5120

adding 1 and 2

768+ 5120 = 5888

Q. 2 A shopkeeper prides himself on offering the best deals. He purchases a batch of 40 pens for ₹50 and later sets a price where he sells 30 pens for ₹50. While doing this, he wonders: what is the percentage of profit he’s actually making on each pen?

Check Solution

Ans: B) 50%

Cost price (CP) of 1 pen = 50 / 40 = ₹1.25.
Selling price (SP) of 1 pen = 50 / 30 = ₹1.6667.
Profit % = [(SP – CP) / CP] × 100 = [(1.6667 – 1.25) / 1.25] × 100 = 33.33%.

Q. 3 Two friends, A and B, partner up to start a business. A invests ₹50,000, and B contributes ₹40,000. After a few months, B notices he’s entitled to a profit share of ₹6,000. Curious about how their business is doing, they ask their accountant: what is the total profit generated by their venture?

Check Solution

Ans: C) ₹13,500

The profit ratio of A and B = 50,000 : 40,000 = 5 : 4.
Let total profit be P. Then, B’s share = 4/(5+4) × P = 4/9 × P.
Given, 4/9 × P = 6,000.
P = 6,000 × 9 / 4 = ₹13,500.

Q. 4 A merchant known for his clever pricing strategy mixes two types of sugar: one costing ₹24 per kg and the other ₹30 per kg. He blends them in the ratio of 1:2 and sets a selling price that gives him a 20% profit. Can you determine the selling price of his mixture per kg?

Check Solution

Ans: D) ₹33.60/kg

Cost price of the mixture = (1 × 24 + 2 × 30) / 3 = (24 + 60) / 3 = ₹28/kg.
Selling price for 20% gain = 28 + 20% of 28 = ₹33.60/kg.

Q. 5 A neighbourhood shopkeeper purchases 20 kg of rice at ₹50 per kg and another 30 kg at ₹60 per kg. After mixing the two, he decides to sell the entire lot at ₹65 per kg. How much profit or loss percentage does he earn on this sale?

Check Solution

Ans: 16% profit

Total CP = (20 × 50) + (30 × 60) = 1000 + 1800 = ₹2800 for 50 kg.
SP = 50 × 65 = ₹3250.
Profit % = [(SP – CP) / CP] × 100 = [(3250 – 2800) / 2800] × 100 ≈ 16.07%.

Q.6 Two entrepreneurs, A and B, pool their resources to start a venture. A invests ₹40,000, while B invests ₹50,000. They agree to split profits in proportion to their investments. If their business earns a total profit of ₹13,500 in the first year, how much of this profit does B take home?

Check Solution

Ans: ₹7,500

Investment ratio of A and B = 40,000 : 50,000 = 4 : 5.
B’s share = 5/(4+5) × 13,500 = 5/9 × 13,500 = ₹7,500.

Q. 7 Nandalal sells two identical Sarees for ₹990 each. However, he gains 10% on one Saree and incurs a 10% loss on the other. After totaling his transactions, he wonders if he’s made an overall profit or a loss—and by what percentage?

Check Solution

Ans: C) 1% loss

Let the CP of item 1 be ₹x, and for item 2, it is also ₹x.
SP of item 1 = x + 10% of x = 1.1x.
SP of item 2 = x – 10% of x = 0.9x.
Net loss = (10% of 10%) = 1%.

Q. 8 Abha buys a gift item, sells it to Benny with a 20% profit, and Benny then sells it to Chandu at a 10% loss. If Chandu pays ₹216 for the item, what was the original cost price that Abha paid for it?

Check Solution

Ans: B) ₹200

Let the CP for A be ₹x.
After A sells to B at 20% profit: SP for B = 1.2x.
After B sells to C at 10% loss: SP for C = 0.9 × 1.2x = 1.08x.
1.08x = 216, so x = 216 / 1.08 = ₹200.

Q. 9 Three partners—Adani, Birla, and Clark—invest ₹10,000, ₹15,000, and ₹20,000 respectively in a business. Adani also takes on the role of a working partner and earns 20% of the total profit for his efforts. If the business generates ₹25,000 in profit, how much of the remaining profit does Birla receive?

Check Solution

Ans: ₹6,000

A’s service share = 20% of 25,000 = ₹5,000. Remaining profit = 25,000 – 5,000 = ₹20,000.
Investment ratio = 10,000 : 15,000 : 20,000 = 2 : 3 : 4.
B’s share = 3/(2+3+4) × 20,000 = 3/9 × 20,000 = ₹6,000.

Q. 10 If Selling Price = 3200, Cost Price = 2500, then calculate Profit

Check Solution

Ans: D

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

Q. 11 Given Selling Price = 7620 and Loss = 1130, find out the Cost Price

Check Solution

Ans: A

Cost price (CP) = Selling Price (SP) + Loss

Q. 12 A manufacturing company sold 400 units of a part at Rs 80 per unit and another 5000 units at Rs 50 per unit to a German automobile company. The cost to produce each unit was Rs 60. What was the company’s total profit or loss after selling all 900 units?

Check Solution

Ans: D

The company made a total of 400 x 80 = 32000 from the 400 units sold for 80 each.

The company made a total of 500 x 50 = 25000 from the 500 units sold for 50 each.

The total revenue from the 900 units sold is 32000 + 25000 = 57000.

The total cost of producing the 900 units is 900 x 60 = 54000.

The company made a profit of 57000 – 54000 = 3000 on the 900 units sold.

So the answer is 3000

Q. 13 Luke purchased two tickets for a Concert: one corner ticket costing 156 dollars and one mezzanine ticket priced at 184 dollars. He later sold the corner ticket for 25% more than its purchase price and the mezzanine ticket for 25% less than what he originally paid. Calculate Luke’s overall profit or loss from these transactions.

Check Solution

Ans: B

He sold the concompany ticket for 25 percent more than he paid for it, so he sold it for 156*1.25 = 195

He sold the mezzanine ticket for 25 percent less than he paid for it, so he sold it for 184*0.75 = 138

His total income from selling the tickets was 195+138 = 333

He paid 156+184 = 340 for the tickets, so he made a profit of 333-340 = -7

So the answer is -7

Q. 14 A clothing store owner purchased two equal-sized batches of dresses at identical costs. The owner sold every dress from the first batch for 70 each, making a profit of 1,600. The second batch was sold for 90 per dress, bringing in a profit of 2,400. How many dresses were there in total in both batches?

Check Solution

Ans: D

Lets say there were x number of dresses in each shipment. And cost of the each dress is y. Then we can set up following equation:

70x – xy = 1600

90x -xy = 2400

20x = 800

x= 40

Therefore there are 80 dresses in both shipments

Q. 15 A shopkeeper experiences a 20% loss on a defective mobile phone when compared to its selling price. If the phone originally cost 6000, what is the selling price?

Check Solution

Suppose selling price is x; Loss = 0.2x

Cost price = x+0.2x = 6000

=>1.2x = 6000

x = 5000

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