Question

A shopkeeper bought a cycle for Rs.1200 and sold it for Rs.1500. Find his profit (or) loss percentage.

Answer 1

Hint: In this solution, the cost price and the selling price is given. To find the profit or loss, we have to subtract the value of the cost price of the cycle from the selling price. After that, the result will be divided by the cost price. Finally, we convert the value to the percentage form which we can get the percentage gain or percentage loss.

It is given that the cost price of the cycle $ = {\rm{Rs}}.1200$
And the selling price of the cycle $ = {\rm{Rs}}.1500$

Since the selling price is more than the cost price thus, we can say that the shopkeeper earns the profit by selling the cycle.
Now, to find the amount of profit we have to subtract the cost price from the sale price of the cycle.
Amount of profit $\begin{array}{c} = {\rm{Rs}}.1500 - {\rm{Rs}}.1200\\ = {\rm{Rs}}.300\end{array}$

Now, we have to determine the percentage gain for which we need to divide the amount of profit with the cost price.
Percentage gain $\begin{array}{c} = \dfrac{{300}}{{1200}} \times 100\% \\ = 25\% \end{array}$

Hence, the required percentage gain is 25%.

Note: Cost price is the original price at which the seller bought the item. Selling price is the price at which the seller sells the item. If selling price is more than the cost price, then the seller gets profit and if selling price is less than cost price, then it is said to be the loss of the seller in that item. Here, we have to determine the percentage gain for the profit. Since the amount of cost price and selling price is given, by which we can find the amount of profit. Thus, we can calculate the percentage gain of the profit.