CAT QA Profit Loss Interest: Check Definition, Important Formulas, Previous Year’s Question and Solutions

CAT QA Profit Loss and Interest topic will help you in scoring around 9-12 marks in the upcoming examination. Based on the syllabus of secondary level, the numerical questions of profit, loss, interest will be framed. For the preparation of CAT Profit Loss Interest, candidates can follow NCERT Mathematics books. Check CAT Quantitative Aptitude Syllabus

As per CAT 2021 Exam Pattern, the number of questions has been decreased to 26 in the QA section. Based on the analysis of the previous year’s question paper, the difficult level CAT Quantitative Aptitude has been rated moderate by the test takers. Read the article to know more about

Basic Concepts of CAT Profit and Loss

Profit is defined as the total amount gained after selling something more than the cost price.

• Loss is defined as the total amount remaining after selling something less than the cost price.
• There are some formulas of Profit and Loss used to calculate the actual price of the commodity.
• Based on the price value, the profit and loss of a product is calculated.

For instance, if a shopkeeper brings some fruits for INR 100 and sells for INR 130, then his profit will be INR 30. In the same way, if he brings fruits for INR 100 and sells for 90, then the percentage of his loss will be INR 10.

What is Discount and how is it calculated?

The important point to be remembered is that - Discount is always calculated on the Marked price of the item.

• Discount = MP - SP (i.e. Marked Price - Selling Price)
• Discount in % = (Discount/MP) × 100

Definition of Interest and Interest Rate

Interest is a payment that is taken from a borrower to lender and the amount is more than the total amount. On the other side, the rate of the interest is defined as the amount of loan that is due for the period.

Some Short Terms to Learn PL Rules:

• In Profit, SP>CP
  • P = SP – CP
• In Loss, CP>SP
  • L = CP – SP
• Profit and Loss Percentages % can be calculated as
  • P% = (P/CP) x 100
  • L% = (L/CP) x 100
• Discount = MP – SP
• SP = {(100 + P%)/100} x CP
• SP = {(100 – L%)/100} x CP
• CP = {100/(100 + P%)} x SP
• CP = {100/(100 – L%)} x SP

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CAT Profit Loss & Interest Important Formulas

In the below section, some important formulas of CAT Profit Loss Interest are given below:

CAT Profit Loss and Interest Previous Year’s Questions

Ques. When P is x% more than Q and Q is (x - 10)% less than R then find the range of values that x can take when P > R.

1. 10% to 28%
2. 10% to 25%
3. 10% to 37%
4. 10% to 43

Correct Answer: ( 3 )

Ques. A is x% more than B and is x% of sum of A and B. Find out the value of x.

1. 50%
2. 62%
3. 75%
4. 37%

Correct Answer: ( 2 )

Ques. In a class, among the studts 50% of the boys were girls, then there would be 50% more girls than boys. Calculate the percentage of girls in the class.

1. 25%
2. 33.33%
3. 40%
4. 20%

Correct Answer: ( 4 )

Ques. When a is x % of b and b is x% more than a then what will be the value of x?

1. 50%
2. 62%
3. 75%
4. 37%

Correct Answer: ( 2 )

CAT Profit Loss and Interest Solved Question with Explanation

Ques. A girl buys a table fan that costs INR 1000 and sells the fan at a loss of 15%. Find out the selling price of that table fan.

Solution: Cost Price of the table fan is INR1000

percentage of loss is 15%

Loss percentage = (Loss/Cost Price) x 100

15 = (Loss/1000) x 100

So, Loss = INR 150

And,

Loss = Cost Price – Selling Price

Therefore, Selling Price = Cost Price – Loss

= 1000 – 150

Selling Price = INR 850

Ques. A girl buys a pencil that costs INR.50 after a 10% discount, find out the actual price or the market price of the pencil.

Solution: MP x (100 – 10) /100 = 50

MP x (90/100) = 50

MP = (50 x 100)/90

MP = INR 55.55

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Preparation Tips for CAT Profit Loss Interest

In the below section, some preparation tips and tricks for CAT 2021 Profit Loss Interest are mentioned.

• Note down all the formulas for the profit, loss and interest
• Practice at least one question with all the formulas daily.
• Try to solve all the questions from the previous year’s question paper.
• Give mock tests more than thrice a week.

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