# Profit and Loss Concept for SSC CGL Tier-2 – Get Free E-book

## Profit and Loss Concept

The Profit and Loss concept is an important concept in Mathematics that is used to determine the price of a given commodity in the market and also to determine if the business is making a profit or loss. Each product will have a certain cost price and selling price. Based on the cost price and selling price the profit or loss on that product can be calculated.

Suppose for a product a person obtains a selling price that is more than the cost price of that product, then we can say that the person has made a profit. While for the same case, if the selling price is less than the cost price of that product, it is regarded as a loss.

Profit and Loss is an important topic from which questions are asked in most of the competitive exams like SSC CGL, SSC CHSL, IBPS PO, SBI PO, SBI Clerk etc.

In this blog, we will be learning about the concept of Profit and Loss and also solve some questions related to Profit and Loss.

## Sneak Peek into the Profit and Loss Concept E-book

Here is a sneak peek into the contents of the e-book, for the complete e-book candidates/aspirants can download using the link provided below.

### Profit and Loss – Important Terms

Profit: Profit is defined as any amount that is gained by selling a product above its cost price.

Loss: Loss is defined as any amount that is lost by selling a product below its cost price.

Cost Price: The price at which the product or a commodity is purchased. It is also denoted as CP. There are two kinds of cost.

Selling Price: Selling price is the price at which the product is sold. It is denoted by SP.

### Formula for Profit and Loss

Profit = Selling Price – Cost Price

Or Gain = Selling Price – Cost Price

Loss = Cost Price – Selling Price or CP-SP

## Solved Questions

Q-1. The cost price of an article is Rs. 480. If it is to be sold at a profit of 6.25 per cent, how much would be its selling price?

A. Rs. 519

B. Rs. 510

C. Rs. 530

D. Rs. 503

Solution: B. Rs.510

Here,

CP = 480

Profit Percentage = 6.25%

Now, Selling Price can be calculated using the formula

Selling Price (SP) = {(100 + P%)/100} x CP

SP = {(100+6.25) / 100} x 480

= (106.25/100) x 480

= 1.0625 x 480

= 510