Question

How much is the profit at 8% on Rs.500?

Answer 1

Hint: Profit is 8%. So first find the amount of 8% of 500 and add this amount to 500 to get the amount at which we get a profit of 8%. Or we can also solve this question by considering Rs. 500 as Cost price and Profit as 8%. So we need to find the selling price.

Complete step-by-step answer:
Profit is a financial gain. When the selling price is greater than the cost price, then we get a profit. It is the income remaining after settling all the expenses.
We are given to find how much the profit at 8% on Rs. 500 is.
Given amount is Rs. 500 and we got a profit of 8% on it.
8% of Rs. 500 is $ \dfrac{8}{{100}} \times 500 = Rs.40 $
So the final (profit) amount will be $ Rs.500 + Rs.40 = Rs.540 $ .
So the amount is Rs. 540 where we get a profit at 8% on Rs. 500.
So, the correct answer is “RS 540”.

Note: Another approach
Let the given cost price be Rs. 500 and the profit is 8%.
So we need to find the selling price at which we got 8% profit.
So Selling price (SP) can be found by $ Profit = \dfrac{{\left( {SP - CP} \right)}}{{CP}} \times 100 $ , where CP is the cost price.
Therefore, on substituting the values of CP and profit in the above formula, we get $ 8 = \dfrac{{\left( {SP - 500} \right)}}{{500}} \times 100 $
Sending 100 to the left hand side, we get $ \dfrac{8}{{100}} = \dfrac{{SP - 500}}{{500}} $
 $ \Rightarrow 8 = \dfrac{{SP - 500}}{5} $
Sending 5 to the Left hand side, we get
 $ \Rightarrow 40 = SP - 500 $
 $ \therefore SP = 500 + 40 = Rs.540 $
Therefore, when the cost price is Rs. 500 and the selling price is Rs. 540, we get a profit of 8%.