Profit Loss Question

Profit Loss is a relatively easy topic and quite often gets tested in these kinds of entrance tests.

Question

If the cost price of 12 articles is the same as the selling price of 10 of those articles, what percent profit does the trader make?
1. 16.66%
2. 20%
3. 25%
4. 16.66% loss
5. 20% loss

Correct Answer: Choice (2) - 20% profit.

Explanatory Answer

Let the cost of 12 articles = Rs.x

Hence, the cost of 1 article = x/12

So, the selling price of 10 articles = Rs.x

Hence, the selling price of 1 article = x/10

The quickest way to solve this question is to assume some value for x. Assume x to be a number that is divisible by 12 and 10.

So, x should be a multiple of 12 and 10. Take x to be 120.

So, the cost of 12 articles = 120. Therefore, the cost of 1 article = Rs.10

The selling price of 10 articles = 120. Therefore, the selling price of 1 article = Rs.12.

The profit on 1 article = Selling price - Cost price = 12 - 10 = Rs.2

Percent Profit = (Profit / CP) * 100 = (2/10)*100 = 20%

Ratio Proportion on Ages

A favorite question that appears more often than not from the Ratio Proportion topic is that of comparing the ages of two people.

Here is an example of such a question.

Question

The ratio of the present ages of Shreyas and Swetha is 3 : 5. Six years back Swetha was twice as old as Shreyas was. How old is Shreyas now?

1. 24
2. 12
3. 30
4. 18
5. 36

Correct Answer is choice (4). 18 years

Explanatory Answer

Let the present age of Shreyas be x years and that of Swetha be y years.
Therefore, x : y :: 3 : 5

Or x/y = 3/5
or x = (3/5)y. --- eqn (1)

6 years back Shreyas was (x - 6) years old.
6 years back Swetha was (y - 6) years old.

We know that Swetha was twice as old as Shreyas was 6 years back.
So, (y - 6) = 2(x - 6) --- eqn (2).

Substituting x = (3/5)y from eqn (1) in eqn (2) we get
(y - 6) = 2((3/5)y - 6)
or 5(y - 6) = 2(3y - 30)
or 5y - 30 = 6y - 60
or y = 30.

x = (3/5)y = (3/5)*30 = 18 years.

You can access more question on TANCET Math Ratio Proportion by clicking here

TANCET Prep Qn: Ratio Proportion

Ratio proportion is a fundamental topic from which you should expect anything from 2 to 3 questions out of the 20 questions in the Math section of TANCET MBA test.

The following question is a ratio question and tests your ability to express one term in terms of another, given the ratio between the two terms.

Question
Sum of the ages of three friends is 98 years. If the ratio of the ages of the oldest to the middle is 5 : 3 and that of the middle to the youngest is 5 : 3, how old is the oldest?
1. 49 years
2. 50 years
3. 30 years
4. 32 years
5. 42 years

The correct answer is 50 years. i.e., Choice (2).

Explanatory Answer
One of the easiest approach to solve this question is outlined below

Let A be the oldest, B the middle one and C the youngest amongst the three friends.
Ratio of the ages of A and B, A : B :: 5 : 3
i.e., A/B = 5/3
Therefore, A = (5/3) B

Ratio of the ages of B and C, B : C :: 5 : 3
i.e, B/C = 5/3.
Hence, C = (3/5)B

We also know that A + B + C = 98

Rewriting the equation in terms of B, we get (5/3)B + B + (3/5)B = 98.
Taking 15 as the common denominator and adding we get (25B + 15B + 9B)/15 = 98
Or (49/15)B = 98
Or B = (98*15)/49 = 30.

Hence, age of A = (5/3)B = (5/3)*30 = 50 years.

Various alternative formats of the same question exist. Some oft repeated questions are given at the Ratio Proportion Practice Question Set.