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CAT
Concept Session 2: Percentages, Profit and Loss
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1
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Topics Break-up
Percentage –Fraction
Relationship
Percentage Change calculations
Profit and Loss - Basics
Successive Increases/decreases
Product Constancy
Partnerships
False weights
2
Percentages
• Product Constancy
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3
Product constancy
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4
Product constancy
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The length of a rectangle is increased by 50%, what should be the percentage
decrease in the breadth to keep the area constant?
The length of a rectangle is decreased by 50%, what should be the
percentage increase in the breadth to keep the area constant?
5
Product constancy line
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𝟏
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6
Product constancy
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Increases followed by decreases
Decreases followed by Increases
7
Product constancy
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The length of a rectangle is increased by 50%, what should be the percentage
decrease in the breadth to keep the percentage increase in area at 20%?
8
• Partnerships
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9
Partnership and profit sharing
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10
Problems
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Arun started his business with Rs. 10,000, Kumar joined him with Rs. 30,000
after 3 months and 3 months from then Banu joined them with Rs. 25000. As the
working partner Arun gets 10% of the profit as commission. If at the end of the
year, Arun received a total of Rs. 12,000 as profit ( including his commission),
what is the difference in the profit shares of Kumar and Banu? (In Rs.)
1) 12,000 2) 4000 3) 8000 4) 4200
11
• Stocks and Shares
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12
Terminology
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Face Value/Par Value
Market Value
Worth of stock
At premium
At Discount
Dividends
Yield/Rate of return
13
Problems
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Arun makes two investments. The first investment is on a 5% stock at 95 and
the second investment is on a 6% stock at 102. Which of these two is a better
investment?
14
Problems
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The face value of a share is Rs. 100 and the market price of the share is Rs.
200. If Kumar invests Rs. 20000 on these shares and the company announce a
dividend of 25% , what is the return on his investment?
1) 20% 2) 12.5% 3) 8% 4) 16.66%
15
Profit and loss
• False Weights
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16
Problems
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A shopkeeper sells his articles at cost price but cheats his
customers by using a faulty balance which shows 1000gm for 750
gm. What is his actual profit percentage?
1) 25% 2) 40% 3) 33.33% 4) 20%
17
Problems
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A shopkeeper sells his articles at cost price to his customers but while buying
from the wholesaler he cheats her by using a faulty balance which shows
1000gm for 1200gm and maximizes his profit. What is his actual profit
percentage in the whole transaction?
1) 25% 2) 40% 3) 33.33% 4) 20%
18
Problems
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A shopkeeper professes to sell his articles at cost price but he maximizes his
gain by using faulty balances. While selling he sells only 900gm and claims to
sell 1000gm and while buying he buys 1100gm and claims to buy only
1000gm.What is his actual profit percentage in the whole transaction?
1) 25% 2) 40% 3) 33.33% 4) 22.22%
19
Problems
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A shopkeeper professes to sell his articles at cost price but he manages to get a
profit of 60% by manipulating the weights while selling. How many grams he
would have sold in place of 1000gm.
1) 750 2) 625 3) 850 4) 725
20
Problems
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A cloth merchant uses a faulty meter scale while buying which actually
measures 110cm for a meter and while selling them he uses another faulty
meter scale which measures 90cm for a meter. If he buys the cloth at a discount
of 20 % on the marked price and sells it at a discount of 10% on the same
marked price, what is his percentage gain or loss?
1) 33.33% 2) 37.5% 3) 25% 4) 20%
21

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Percentages Profit and Loss Session 2