if he suffers a loss of 1%, he sold it for 99% of the purchase price.
if the purachase price of P, then:
1.1P * (1-D) = 0.99P
1-D = 0.99/1.1
D = 0.1
D= 10%
2. uses the same kinds of principle, have a go and see how far you can get.
Can someone please help me with these two profit loss problems?
1. A trader marks the selling price of an article at 10% above the cost price. At the time of selling, he allows a certain discount & suffers a loss of 1%. How much discount did he give?
2. At what profit % must an article must be sold so that by selling at half that price there may be a loss of 30%?
Thanks,
Ron
OK....this is how I tried the second problem but am not sure if it is right....
Let selling price (SP) be 100
Half the SP means SP=50
Loss%=30%
Cost Price=CP
Loss%=(CP-SP)/CP*100
30=(CP-50)/CP*100
CP=500/7
Profit%=(SP-CP)/CP*100
Now SP=100
Profit%=[(100-500/7)/(500/7)]*100
Profit%=40%
Is it correct?
Thanks,
Ron
Now your getting the hang of it
As you practice mroe, youll be able to write these down in only 1 or two lines:
If the cost price is x and the profit percentage is p then
final sale price = (1+p)x*0.5
And we want the final sale price to be 70% of x.
(1+p)x*0.5 = 0.7x
(1+p)=0.7/0.5
p=0.4
p=40%