Word Problems on Profit and Loss | Profit and Loss Questions with Solutions

The word problems on profit and loss are solved here to get the basic idea of how to use the formulae of profit and loss in terms of cost price and selling price. We have explained the entire concept of profit and loss and various formulae when C.P, S.P, Profit %, or Loss % is given. Solve Different Questions on Profit and Loss available here to test your grip on the fundamentals of the concept.

Profit or Gain

If the selling price of an item is more than the cost price of the same item, then it is said to be gain (or) profit i.e. S.P. > C.P.

Net profit= S.P. – C.P.

Loss

If the selling price of an item is less than the cost price of the same item, then it is said to be a loss i.e. S.P.  < C.P.

Net loss = C.P. – S.P.

Profit and Loss Word Problems with Answers

Question 1:

A laptop was brought for $ 80,000 and sold at a loss of $ 5000. Find the selling price.

Solution:

Given data:

The cost price of the laptop is $ 80,000

Loss = $ 5000

We know that,

Loss = C.P. – S.P.

$ 5000 =$ 80,000 – S.P.

S.P. = $ 80,000 – $ 5000

S.P. = $ 75,000

Therefore, the selling price of the laptop is $ 75,000.

Question 2:

Abhi sold his water purifier for $ 4000, at a loss of $ 300. Find the cost price of the water purifier.

Solution:

Given Data:

The selling price of water purifier = $ 4000

Loss = $ 300

We know that, Loss = C.P. – S.P.

From this, we can note that,

Cost price = loss + selling price

= $ 300 + $ 4000

= $ 4300

Hence, the cost price of a water purifier is $ 4300.

Question 3:

Deepika sold her gold necklace for $ 60,000 at a profit of $ 10,000. Find the cost price of the gold necklace.

Solution:

Given data

The selling price of gold necklace = $ 60,000

Gained a profit = $ 10,000

From the formula

Gain = Selling price (S.P.) – Cost price (C.P.)

We get,

Cost price (C.P.) = Selling price (S.P.) – Gain

= $ 60,000 – $ 10,000

= $ 50,000.

Hence, the cost price (C.P.) of the gold necklace is $ 50,000.

Question 4:

Karthik buys a watch for $ 6000 and sells it at a gain of 5⅓ %. For how much does he sell it?

Solution:

Given Data:

Cost price (C.P.) of watch = $ 6000

Gain = 5⅓% = 16/3 %

We know that

Gain% = ((S.P. – C.P.)/C.P. *100) %

From above,

S.P. = [{(100 + gain %) /100) * C.P.]

= $ [{(100 + 16/3)/100} * 6000]

= ${(103.33/100) * 6000]

= $ 6199.8

Hence, karthik sells his watch at an amount of $ 6199.8.

Question 5:

Siva ram bought an old bike for $ 15000 and spends $ 2000 on repairs. If he sells the bike for $ 21150, what is his gain percentage?

Solution:

Given data:

Cost price (C.P.) of bike = $ 15000

Repair cost = $ 2000

Total Cost Price = Original Price of the Bike + Repair Cost

= $ 15000+$2000

= $17000

Selling price (S.P.) of bike = $ 21150

As the selling price (S.P.) is more than the cost price (C.P.) of the bike then it is said to be in gain

Therefore, Gain = Selling price (S.P.) – Cost Price (C.P.)

= $ 21150 – $ 17000

= $ 4150.

Gain % = ((S.P. – C.P.)/C.P. *100) %

= $ (4150/17000 * 100) %

= 24. 41%

Hence, He got a 24.41% gain on his bike.

Question 6:

If the selling price of an object is doubled, the profit of the object triples. Find the profit percentage.

Solution:

Given data:

Let the cost price of the object be $ ‘a’

And selling price of the object be $ ‘b’

According to the question, the profit is tripled and selling price is doubled hence

Profit = $ 3(b – a)

Profit = S.P. – C.P.

3(b – a) = 2b –a

3b – 3a = 2b – a

Therefore, b = 2a.

Profit =$ b – a

= 2a –a

= $ a.

Profit% = ((S.P. – C.P.)/C.P. *100) %

= (a/a * 100) %

= 100%.

Question 7:

The percentage profit earned by selling an article for $ 3000 is equal to the percentage loss incurred by selling the same article for $ 2500. At what price should the article be sold to make a 20% profit?

Solution:

The above question says that the % profit earned by selling the article is equal to the % loss incurred

by the same article.

Given data:

Let the C.P. of the article be ‘P’

We know that

Profit % = ((S.P. – C.P.)/C.P. *100) %

And loss % = ((C.P. – S.P.)/C.P. *100) %

((3000 – p)/p * 100) = ((p – 2500)/p * 100)

2p = 7500

P = $ 3750.

Calculating selling price at a profit of 20%

Profit % = ((S.P. – C.P.)/C.P. *100) %

From above,

S.P. = $ [{(100 + gain %) /100) * C.P.]

= $ ((100 + 20)/100) * 3750)

= $ 4500.

Question 8.

If mangoes are bought at prices ranging from $ 300 to $ 450 are sold at prices ranging from $ 400 to $ 525, what is the greatest possible profit that might be made in selling ten mangoes?

Solution:

The question says that the mangoes are bought at a certain range and sold at a certain range. It says to find the greatest profit on selling ten mangoes.

Given data:

Cost price (C.P.) of mangoes ranging from = $ 300 – $ 450

Selling price (S.P.) of mangoes ranging from = $ 400 – $ 525

Considering,

Least cost price (C.P.) for ten mangoes = $ 300*10

= $ 3000

Greatest selling price (S.P.) of mangoes = $ 525*10

= $ 5250

Profit = S.P. – C.P.

= $ 5250 – $ 3000

= $ 2250.

Hence, the required profit obtained is $ 2250 on selling mangoes.

Question 9:

On selling 18 toys at $ 800, there is a loss equal to the cost price of 7 toys. The cost price of the toys is?

Solution:

Given data:

Let the cost price (C.P.) of the toys be ‘m’

Given, on selling 18 toys at $ 800, there is a loss equal to the cost price of 7 toys

According to the question, the equation is written as:

18m – 800 = 7m

Solving the above equation

We get m = $ 32

Therefore, the cost price of the toy is $ 32.

 

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