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 ${\displaystyle \frac{8}{100}}\times 500=Rs.40$
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 $Profit={\displaystyle \frac{\left(SP-CP\right)}{CP}}\times 100$ , where CP is the cost price.
Therefore, on substituting the values of CP and profit in the above formula, we get $8={\displaystyle \frac{\left(SP-500\right)}{500}}\times 100$
Sending 100 to the left hand side, we get ${\displaystyle \frac{8}{100}}={\displaystyle \frac{SP-500}{500}}$
 $\Rightarrow 8={\displaystyle \frac{SP-500}{5}}$
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%.