Profit & Loss Question Answers

Profit, Loss and Discounts - CAT 2007

Question 4 the day : April 29, 2003
The question for the day is a sample practice problem in profit, loss, discounts, an Arithmetic Topic.

Question
If apples are bought at the rate of 30 for a rupee. How many apples must be sold for a rupee so as to gain 20%?

1. 28
2. 25
3. 20
4. 22

Correct Answer - 25 apples. Choice (2)

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Explanatory Answer

The merchant makes a profit of 20%.
This means that the merchant sells 30 apples for Rs.1.20

Therefore, selling price of 1 apple = (1.20/30) = Rs.0.04 or 4 paise

The number of apples that can be sold for Rs.1.00 = Rs.1.00/0.04 = 25 apples.