# (IGP) IAS Pre Paper - 2: GS - Basic Numeracy - Profit & Loss

## Basic Numeracy

Profit and Loss

## Cost Price

The price at which an article is purchased is called the cost price or CP.

## Selling Price

The price at which an article is sold is called the selling price or SP.s

## Formulae

Gain or Profit = SP – CP

## Marked Price or List Price

Price that is indicated or marked on the article is called marked price or MP.

## Discount

It is reduction given on the Marked Price or List Price of an article.

If a trade gets x% profit and x% loss in selling two different articles, then in over all transaction, there is always a loss which is given by

**Example 3:** A book is bought for Rs. 80 and sold at the gain of 5%.
Find the selling price.

**Solution. **CP = Rs. 80, Gain = 5%

**Example 4:** If cost price of 15 articles is equal to the selling price
of 12 articles, then find the gain per cent.

**Solution. **Let cost price of each article = Rs. 1

Then, Cost price of 15 articles = Rs. 15

Selling price of 12 articles = Rs. 15

But Cost price of 12 articles = Rs. 12

Profit = Rs. (15 – 12) = Rs. 3

**Example 7:** A radio is listed at Rs. 500 with a discount of 10%.What
additional discount must be offered to the customer to bring the net price to Rs.
423?

**Solution. **List price = Rs. 500, Discount = 10%

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