Question

Manjit bought an iron safe for Rs.12160 and paid Rs.340 for its transportation. Then, he sold it for Rs.12875. Find his gain per cent.

Answer 1

Hint: We find the cost price (CP) for Manjit by adding the purchase cost of the iron safe Rs.12160 and cost for transportation Rs.340. We are given a selling price SP as Rs.12875. We find the gain amount $\text{Gain}=\text{SP}-\text{CP}$ and the percent gain using the formula $\% \text{Gain}=\dfrac{\text{Gain}}{\text{CP}}\times 100$.

Complete step by step answer:
We know that the cost price abbreviated as CP of an article is the price at which the article is bought or the price that was spent for making the article from materials plus additional expenditure. The additional expenditure may be taxes, transportation etc.
The selling price abbreviated as SP is the price at which the article is sold. If the selling price is greater than cost price then we say the sellers earned profit or gain. The gain amount is given by
\[\text{Gain}=\text{SP}-\text{CP}\]
The percentage gain is calculated on cost price as
\[ \% \text{Gain}=\dfrac{\text{Gain}}{\text{CP}}\times 100\]
We are given in the question that Manjit bought an iron safe for Rs.12160 and paid Rs.340 for its transportation. The cost price for Manjit the sum of the amount he spent for buying the iron safe Rs.12160 and the amount he spent for transportation as additional expenditure Rs.340. So we have the cost price in rupees is
\[\text{CP}=12160+340=\text{Rs}.12500\]
We are further given the question that he sold the iron safe for Rs.12875. We are asked to find the gain per cent. Let us first find the gain as
\[\text{Gain}=\text{SP}-\text{CP}=\text{Rs}\text{.12875}-\text{Rs}\text{.12500=Rs}\text{.375}\]
We use the formula for gain per cent and have
\[ \% \text{Gain}=\dfrac{\text{Gain}}{\text{CP}}\times 100=\dfrac{375}{12500}\times 100=\dfrac{375}{125}=3\]

So the gain percent is 3%.

Note: We note that of if selling price would have less than cost price Manjit would have earned loss as \[\text{Loss}=\text{CP}-\text{SP}\] and loss percent would have been\[ \%
\ text{Loss}=\dfrac{\text{Loss}}{\text{CP}}\times 100\]. We must be careful that percent gain or loss is always calculated on cost price not on selling price unless stated otherwise.