What is Profit or Loss in terms of Percentage?
Profit or Loss in Percentages?
We can define profit or loss in two ways-
In terms of absolute amount- This is the method we studied just now where profit or loss is defined in monetary value.
In terms of percentage- This is the method we will study now where profit or loss is defined as a percentage of the invested value or the cost.
To find the profit or loss percent, we divide the profit or loss by its original price i.e. the cost price. This indicates the per cent profit a seller earns on his investment.
Examples-
A television purchased for Rs. 7500 was later sold for Rs. 5400.
Calculate the loss on sale.
Express the loss in percentage terms.
Solution
Loss = Cost Price – Selling Price
= Rs. 7500 – 5400
= Rs. 2100
A computer purchased for Rs. 11000 is sold at a profit of 15%. Calculate the selling price.
Solution
Thus, the selling price of the computer is Rs. 12650.
A chair is sold for Rs. 2500 at a profit of 25%. Calculate its cost price.
Solution
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