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Profit and Loss Questions for CAT CAT Concepts IIM MBA Profit and Loss Quantitative Aptitude 

Profit and Loss Questions for CAT

IMPORTANT PROFIT AND LOSS QUESTIONS:

Profit and Loss is a very familiar concept as it relates to our daily life. Any sale or purchase we make in our life includes profit and loss in some or the other way. Also, it is one of the very important topic in CAT exam under Percentage Topic in Quantitative section. One can easily crack such questions with some conceptual clarity.  Here, are some of the profit and loss questions you must go through:

Some Important Profit and Loss Questions covering different Concepts:

Question 1:

Shivam, on his death bed, keeps half his property for his wife and divides the rest equally among his three sons: Dev, Vaibhav and Kashish. Some years later, Dev dies leaving half of his property to his widow and half to his brothers Vaibhav and Kashish together, sharing equally. When Vaibhav makes his will, he keeps half his property for his widow and the rest he bequeaths to his younger brother Kashish. When Kashish dies some years later, he keeps half of his property to his widow and the remaining for his mother. The mother now has Rs.15,75,000. What was the worth of the total property?

Answer: Let Shivam’s property be x

After Shivam’s death, money belongs with the family members will be,

Shivam Wife = x/2

Dev = x/6 (one-third of x/2)

Vaibhav = x/6

Kashish = x/6

After Dev’s death, money belongs to his family members will be,

Shivam Wife = x/2

Dev Wife = x/12 (half of x/6)

Vaibhav = x/6+x/24 ;  = 5 x/24

Kashish = 5 x/24

After Vaibhav’s death, money belongs to his family member will be,

Shivam Wife = x/2

Dev Wife = x/12 (half of x/6)

Vaibhav Wife = 5 x/48 ( half of 5 x/24)

Kashish = 5 x/24+ 5 x/48 = 15 x/48

After Kashish’s death, money belongs to his family member will be,

Shivam Wife = x/2 + 15 x/96 (half of 15 x/48) ; 63 x/96

Dev Wife = x/12

Vaibhav Wife = 5 x/48

Now given that, 63 x/96 = Rs 15,75,000

x = Rs 24,00,000

Question 2:

Suresh buys an old bike for Rs 5000 and spends Rs 1000 on its repair. If he sell the bike for Rs 6500, What will be his gain percent?

Answer: The total Cost Price will be 6000 (5000+1000)

Total Selling Price will be 6500

Gain = 500 (6500-6000)

Gain Percentage will be= (500/6000 * 100)

= 8.33%

Question 3:

A dishonest merchant sells his grocery using weights 20% less than the true weights and makes a profit of 20%. Find his total gain percentage.

Answer: Let us consider 1 kg of grocery bag. Its actual weight is 80% of 1000 gms =800 gm

Let the cost price of 1 gm be rs 1. The cost price of 1 bag will be Rs 800

The selling price of 1 kg of bag will be 120% of 1000 gm, that is, Rs 1200

Gain will be 1200-800 = Rs 400

Hence, Gain Percentage will be (400/800*100) = 50%

Question 4:

Arun buys a watch for Rs. 500 and sells it to Varun at 10% loss. Varun then sells it to Barun at 20% profit and Barun sells it to Karun at 10% profit. How much did Karun pay for the watch?

Answer: Let us consider that Arun buys a watch for Rs 100

Cost Price for Arun is Rs 100

Selling Price for Arun is Rs 90 (@ loss of 10%)

Cost Price for Varun is Rs 90

Selling Price for Varun is Rs 108 (@ profit of 20%)

Cost price for Barun is Rs 108

Selling Price for Barun is 118.8 (@ profit of 10%)

Cost Price of Karun, Increases by 18.8% of initial cost price

If the initial cost price is Rs 500, then Karun will have to pay Rs 594 (118.8% of 500).

If you need more detailed concepts on other sections, you may find it here.

For blogs on other MBA preparation strategy, you will find this link useful.

 

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