If a boy sells a book for Rs. 612 then there will be a loss of 20%. What is the profit when the book is sold for Rs. 918?
- AOption (a)
20%
- BOption (b)
25%
- COption (c)
18%
- DOption (d)
15%
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Correct answer
20%
Why this answer is correct
Shortcut Trick
Loss 20% → Selling Price (SP1) is 80% of Cost Price (CP).
₹612 represents 80%.
New SP (₹918) represents (80 ÷ 612) × 918.
⇒ (80 ÷ 2) × 3 = 120%.
Profit = 120% − 100% = 20% or 0.2.
∴ The correct answer is 0.2.
Alternate Method
Given: SP1 = ₹612, Loss = 20%, SP2 = ₹918
Formula: CP = SP × 100 ÷ (100 − Loss%)
SP1: ₹612
CP: ₹765
SP2: ₹918
20% Loss
Profit %?
⇒ CP = 612 × 100 ÷ (100 − 20)
⇒ CP = 612 × 100 ÷ 80 = 612 × 1.25 = ₹765
⇒ Profit = SP2 − CP = 918 − 765 = ₹153
⇒ Profit % = (Profit ÷ CP) × 100 = (153 ÷ 765) × 100
⇒ Profit % = 1/5 × 100 = 20%
⇒ In decimal form, 20% = 0.2
∴ The correct answer is 0.2.
Additional Information
Profit and Loss Formulas
Profit % = (Profit ÷ CP) × 100 and Loss % = (Loss ÷ CP) × 100. Profit or Loss is always calculated on the Cost Price unless specified.
Decimal Representation of Percentages
To convert percentage to decimal, divide by 100 (e.g., 20% = 20/100 = 0.2). To convert decimal to percentage, multiply by 100.
Marked Price and Discount
SP = MP − Discount. Discount % = (Discount ÷ MP) × 100. Marked Price is the price listed on the product.