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When gain% and loss% are equal and SP is same, Net Loss% = (x/10)^2. Here x=28. Net Loss = (28/10)^2 = 7.84%.
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Profit and Loss is a key Quantitative Aptitude topic in SSC CGL, IBPS Bank PO, SBI PO, CAT, and Railway exams. Basic terms: Cost Price (CP) - price at which an item is purchased. Selling Price (SP) - price at which it is sold. Profit = SP - CP (when SP > CP). Loss = CP - SP (when CP > SP). Profit% = (Profit/CP) x 100. Loss% = (Loss/CP) x 100.
Marked Price (MP) is the price printed on the item before discount. Discount = MP - SP. Discount% = (Discount/MP) x 100. SP = MP x (100-Discount%)/100. If a shopkeeper marks up by 40% and gives 20% discount: SP = CP x 1.40 x 0.80 = 1.12CP = 12% profit. Profit% and Loss% are always calculated on Cost Price unless specified otherwise.
When two successive discounts of a% and b% are given, the effective single discount = a + b - (ab/100). Example: Two discounts of 20% and 10%: Effective discount = 20 + 10 - (20x10/100) = 30 - 2 = 28%. For three discounts: apply the formula twice. Three discounts of 10% each is NOT 30% total but approximately 27.1%. These problems frequently appear in banking exams.
A dishonest dealer uses a false weight to make extra profit. If a dealer uses 800g instead of 1000g and claims to sell at cost price, profit% = (200/800) x 100 = 25%. Formula: Profit% = Error/(True weight - Error) x 100. If he also adds a markup percentage on top, calculate both profits separately and combine them.
Key Profit and Loss shortcuts: CP when profit% known: CP = SP x 100/(100+P%). CP when loss% known: CP = SP x 100/(100-L%). If article sold at 2/3 of original price gives x% loss: original price = SP x (100/(100-x)). For two articles at same SP, one at x% profit and other at x% loss: always results in x squared/100% loss overall. Memorize these for exam speed.
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