Question

Arun buys a watch for Rs.580 and sells it for Rs.667. Find his profit or loss percent.

Answer 1

Hint: When a product is purchased in the view of selling it to the consumer in order to do business then, the price in which the product is bought by the seller is known as the cost price of the product and the price in which the seller sells the product to the consumer is known as selling of the product for the seller. If the selling price of the product is greater than the cost price of the product, then the difference in the prices can be termed as the profit or the gain on the product while at the same time if the selling price is less than the cost price of the product, then the difference in the price is known as the loss on the product. Profit percent or loss percent of a product is always calculated on the cost price of the product.

Complete step-by-step answer:
In this question, cost price and selling price are given, compare these costs and find if Arun gained profit or he suffered a loss and the find profit or loss percent.
The cost price of the watch \[C.P = Rs.580\]
The selling price \[S.P = Rs.667\]
From the given data, it is clear that Arun gained a profit since the selling price of the watch is more than its cost price
\[
  S.P > C.P \\
  Rs.667 > Rs.580 \\
 \]

Therefore his profit,
\[
  P = S.P - C.P \\
   = 667 - 580 \\
   = Rs.87 \\
 \]
So the profit percentage will be
 \[
  P\% = \dfrac{{SP - CP}}{{CP}} \times 100 \\
   = \dfrac{{87}}{{580}} \times 100 \\
   = 15\% \\
 \]
Hence the profit percent gained by Arun on selling watch=15%

Note: It is to be noted here that many a time, the marked price has been given in the question instead of selling price. So, be careful while reading the question as the marked price is the price that has been marked on the product by the seller, but the selling price is the price of the product which the seller actually gets for the product after discount.