21/04/2016

Mrunal[Aptitude]ConceptsofMarkedPriceandSuccessiveDiscounts(ProfitLoss)without(stupid)formulasMrunal

Mrunalhttp://mrunal.org

[Aptitude]ConceptsofMarkedPriceandSuccessive
Discounts(ProfitLoss)without(stupid)formulas
PostedBySupportStaffOn20/11/2012@3:20pmInAptitude|97Comments

Profit,Loss,Discount,MarkedPrice=allofthemaremereextensionofPercentage
calculationconcept.Andtheycanbesolvedeffortlessly,withoutmuggingupanyformulas.
WhatisDiscount?
Whatissuccessivediscount?
Case:SuccessivevsOneTimeDiscount?
Whatismarkedprice?
Case:FindingMarkedPricefromProfit%
Case:FindingmarkedpricefromSellingprice
Case:Finding%Profit/lossinMPDiscount
MOCKTEST
Answerswithexplanationsandshortcuts

WhatisDiscount?
Inthegarmentstores,youvecomeacrossthissignmanytimes:HURRY!20%OFF!!
That20%iscalleddiscount.
SupposeaMusicCDhaspricetagofRs.100andtheshopkeeperisoffering20%discount.
Thatmeans20%lessonthepricetag.
Thepriceyouvetopay
=Rs.100minus20%of100
=100(20100/100)
=10020
=Rs.80youvetopay,tobuythatmusicCD.
Butinexam,wedonthavenotimetodosuchlengthycalculations.
Sojustthinkinyourhead:
20percentdiscountmeansyouvetopay100percentminus20percent=80percentofthe
pricetag.
%meansoneuponhundred(1/100)
So80%means(80/100=0.8)
Soyouvetopay0.8timestheoriginalprice.
=0.8x100
=Rs.80

Whatissuccessivediscount?
Itmeansdiscountonthediscount.(justlikeCompoundInterestrate=interestoninterest)
TheoriginalpriceofamusicCDisRs.100.Ashopkeeperoffers10%discountonthismusic
CDandthenagainoffers20%discountonthenewprice.Howmuchwillyouhavetopay,
http://mrunal.org/2012/11/aptitudeconceptsofmarkedpriceandsuccessivediscountsprofitlosswithoutstupidformulas.html/print/

1/9

21/04/2016

Mrunal[Aptitude]ConceptsofMarkedPriceandSuccessiveDiscounts(ProfitLoss)without(stupid)formulasMrunal

finally?

PhaseI:10%discount
Sonewprice=0.9xoriginalprice.(bytheway,howdidweget0.9?well10%discount
meansyouvetopay90%.And90%means0.9)

PhaseII:20%discount
=0.8xnewprice
=0.8x0.9xoriginalprice.
Itmeans,aftersuccessivediscountof10%and20%,thefinalpriceyouvetopay
=0.72xoriginalprice.
=0.72x100
=Rs.72
Ifitwassuccessivediscountof20%andthen10%?Stillanswerwillremainsame.ORDER
orsequencedoesntmatter.
LetstestourskillwithanactualquestionfromSSC/FCIExamtakeninNov2012.
Q1.AdealerbuysatablelistedatRs.1,500andgetssuccessivediscountsof20%and
10%.HespendsRs.20ontransportationandsellsitataprofitof20%.Thesellingpriceof
thetableis
Rs.1,320
Rs.1,350
Rs.1,360
Rs.1,380
Thinkinyourhead:
20%discount=0.8xoriginalprice(thisisournewprice)
10%successivediscount=0.9xNewprice=0.9x0.8xoriginalprice
http://mrunal.org/2012/11/aptitudeconceptsofmarkedpriceandsuccessivediscountsprofitlosswithoutstupidformulas.html/print/

2/9

21/04/2016

Mrunal[Aptitude]ConceptsofMarkedPriceandSuccessiveDiscounts(ProfitLoss)without(stupid)formulasMrunal

Finallydealerhadtopay:0.72xoriginalprice.
ThenheinvestedRs.20ontransport,sohistotalinvestment(costprice)is
(0.72xoriginalprice)+Rs.20
AndultimatelyhesoldIt@20%profit.
20%profitmeans100%+20%=120%
=1.2timestheinvestment(costprice).
=1.2times[(0.72xoriginalprice)+Rs.20]Intheexamhall,onlywritefollowinglineand
dothemath,dontwastetimewritingeverythingormultiplyingnumbers@everystage.
=1.2times[(0.72x1500)+Rs.20]
=1.2[1080+20]=1.2[1100]=Rs.1320
(Ihopeyouknowquickmultiplicationwith11,basically1211=in12youdo:1|
(1+2)|2=132)

Case:SuccessivevsOneTimeDiscount?
Q.Jethalal,hasamobilephonewithpricetagRs.12,399/.Heisofferingtwoschemesto
you
Buyitatonetimediscountof30%
Buyitattwosuccessivediscountsof15%and15%
Whichoftheaboveschemeismorebeneficialtoyou(customer)?

Longcut(tiresomeandboringcalculation)
SchemeA

ShemeB
PhaseI
15%of12399
=1859.85Rs.(discountI)

Discountoffered
=30%of12,399
=0.3x12,399
=3719.7

Sonewprice:12399MINUS1859.85=10539.15
PhaseII:(seconddiscount)
=15%of10539.15
=0.15x10539.15
=1580.8725(discountII)
Totaldiscount
=1859.85+1580.8725
=3440.7225

WearegettingmorediscountinSchemeAcomparedtoSchemeB.
So,fromcustomerspointofview,SchemeAismorebeneficial.
^Verylengthyandtiresomecalculationisntit?
Well,ifyoulookatitcarefully,thepricetagRs.12,399/isirrelevanthere.

Shortcut(almostnonecalculation)
SchemeA
Discountoffered=30%
Finalpriceyouvetopay

SchemeB
Successivediscount15%(twotimes)
Finalpriceyouvetopay

http://mrunal.org/2012/11/aptitudeconceptsofmarkedpriceandsuccessivediscountsprofitlosswithoutstupidformulas.html/print/

3/9

21/04/2016

Mrunal[Aptitude]ConceptsofMarkedPriceandSuccessiveDiscounts(ProfitLoss)without(stupid)formulasMrunal

=0.7timesoriginalprice. =0.85x0.85xoriginalprice
=0.7225xoriginalprice
InSchemeA,youvetopaylesspricecomparedtoSchemeB.Because0.7<0.7225
So,fromcustomerspointofview,SchemeAismorebeneficial.
Sidenote:youcando8585withVedicshortcut(squareofnumbersendingwithfive)
Squareof85
=8|5
=(8x(8+1)|25
=8*9|25
=7225
Ihopediscountandsuccessivediscountisclear.Movingtothenexttopic.

Whatismarkedprice?
Beforethat,answerthisquestion:

Whydoshopkeepersgivediscount?
Wellitsamarketingpropagandatoseducecustomers.
Imrunningajeansstore.IboughtapairofjeanforRs.100(costprice).
NowIputanewtagonitRs.500(markedprice)andthenputahugeposteroutsidemy
shop:50%OFFonanyitem!
Frombuyerspointofviewitlooksveryattractivewow50%discount!!
Butinreality,Immakinghugeprofit.Because50%discountonRs.500=Youvetopay
Rs.250,whileIhadinvestedonlyRs.100!somyprofit=(250100)=Rs.150
Markedprice=thisnewpricetagRs.500.Discountisgivenonmarkedprice.Ifwewant
tovisualizeit,hereisthediagram:

Mindit:Profitor
lossisalwayscalculatedonactualinvestment(Costprice),unlesstheyspecificallyinstruct
http://mrunal.org/2012/11/aptitudeconceptsofmarkedpriceandsuccessivediscountsprofitlosswithoutstupidformulas.html/print/

4/9

21/04/2016

Mrunal[Aptitude]ConceptsofMarkedPriceandSuccessiveDiscounts(ProfitLoss)without(stupid)formulasMrunal

youdosomethingelse.
Timetotesttheskillwithactualquestions

Case:FindingMarkedPricefromProfit%
Q.JethalalboughtaNokiamobilephone@Rs.800.HesoldittoMasterBhideafter
allowingadiscountof10%.Inthisdeal,Jethalalmadeaprofitof12.5%.Whatwasthe
markedprice?
Rs.1,000
Rs.1,100
Rs.1,200
Rs.1,300
Profitisalwayscalculatedonactualinvestment(costprice).
CostPrice:Rs.800
Thequestionsays,profit=12.5%.Whatistheprofitinrupeeterms?
Longcut

Shortcut

=12.5%x800

12.5%=1/8(percentagetofractionconversiontable).

=(125/10)x(1/100)x800 So,12.5%x800
=Rs.100

=(1/8)x800=Rs.100

Anywaysineithermethod,profitisRs.100Fact(i)
Jethalalgave10%discountonmarkedprice.SocustomerBhideMasterhadtopayonly
90%oftheMarkedPrice.
=0.9timesthemarkedprice
=thisisthemoneyJethalalreceivedfromcustomer.

Jethalalsactualprofit
=themoneyhereceivedfromcustomerMINUShisoriginalinvestment.
=0.9timesMarkedpriceMINUSRs.800
Butrecallfact(i),JethalalsprofitisRs.100
Therefore
100=0.9timesMarkedpriceRs.800
100+800=0.9timesmarkedprice
900=0.9xMP
MP=900x10/9
MP=Rs.1000.
FinalAnswer:markedpriceisRs.1000
Intheexamhall,directlyframetheequation:0.125x800=(0.9xMP)800
Letstryanotherone.

Case:FindingmarkedpricefromSellingprice
Q.MasterBhide,boughttwopensforRs.37.40atadiscountof15%.Whatmustbethe
markedpriceofeachofpen?
http://mrunal.org/2012/11/aptitudeconceptsofmarkedpriceandsuccessivediscountsprofitlosswithoutstupidformulas.html/print/

5/9

21/04/2016

Mrunal[Aptitude]ConceptsofMarkedPriceandSuccessiveDiscounts(ProfitLoss)without(stupid)formulasMrunal

Rs.11
Rs.44
Rs.33
Rs.22
Discountof15%,meansMasterBhide(customer)paid(10015)=85%ofthemarked
price.
=0.85timesthemarkedprice
ButquestionalsosayshepaidRs.37.40,Therefore
37.40=0.85xMP.
MP=3740/85
=(374x10)/(175)
=(374x2)/17
=(222)
=44.(Sidenote,ifyoudontknowthemultiplicationtableof17,thenuseapproximation
methodexplainedinearlierarticle.CLICKME)
Mostimportantpart:Rs.44isthemarkedpriceoftwopens.Somarkedpriceofeachpen
=44/2=Rs.22
Answeris(D)
Intheactualexam,roughpapercalculation:=37.4/(0.85x2)

Case:Finding%Profit/lossinMPDiscount
Jethalalmarksthepricetagsofallhismobilephones,10%abovethecostprice.Andthen
Heoffers10%discountontheirmarkedprices.Whatishisprofitorloss?
1%profit
1%loss
5%profit
NoprofitNoloss.
AssumehistotalinvestmentisRs.100(=costprice).Wellwecanassumetotalinvestment
asCPorxoryoranythingbutassumingRs.100savesthetimeofcalculating
percentageslateron.
Markedprice
=10%abovecostprice
Sopricetag(markedprice)is
100%+10%ofCostprice
=110%ofcostprice
=1.1xcostprice
=1.1x100
=Rs.110
Nowheoffers10%discountonmarkedprice,socustomerhastopayonly
0.9timesthemarkedprice
=0.9x110
=Rs.99
http://mrunal.org/2012/11/aptitudeconceptsofmarkedpriceandsuccessivediscountsprofitlosswithoutstupidformulas.html/print/

6/9

21/04/2016

Mrunal[Aptitude]ConceptsofMarkedPriceandSuccessiveDiscounts(ProfitLoss)without(stupid)formulasMrunal

Verdict:HisinvestmentisRs.100andhereceivesonlyRs.99fromcustomerssoheis
makingloss
Howmuchloss?
Longcut Loss%formula=(10099)/100x100=1%
Shortcut

WeassumedRs.100initiallyfortheveryreasonthattopreventlongcutformula!
Sincehereceivesonerupeeless(10099),hislossis1%.

Intheactualexam,roughpaper:
Invested Received
100

0.9x1.1x100=99

So,lossis1%.
Ihopetheconceptofmarkedpriceisclearbynow.Soitistimefora

MOCKTEST
Time:20Minutes
Correct=1m
Wrong=minus0.33m
1.WhenJethalaloffersdiscountoncostprice,hemakes
Profit
Loss
NoProfitnoLoss
Profitorloss,dependingonsituation.
2.JethalalsofferingtosellanLCDTVpriced@Rs.1,79,299/undertwooffers
Onetimediscountof40%
SuccessiveDiscountof36%and4%
Whichofferismorebeneficialfromcustomerspointofview?
3.Jethalalofferedascheme:twosuccessivediscounts10%andthen10%.Whichofthe
followingschemewillgivesameeffect?
Onetimediscountof15%
Onetimediscountof19%
Onetimediscountof20%
Onetimediscountof25%
4.Whichofthefollowing,isabetterdealfromcustomerspointofview?
Threesuccessivediscountsof10,20,30%
Twosuccessivediscountsof20,20%
Onetimediscountof50%
5.Jethalalofferstwodeals
Successivediscounts:first10%andthen20%
http://mrunal.org/2012/11/aptitudeconceptsofmarkedpriceandsuccessivediscountsprofitlosswithoutstupidformulas.html/print/

7/9

21/04/2016

Mrunal[Aptitude]ConceptsofMarkedPriceandSuccessiveDiscounts(ProfitLoss)without(stupid)formulasMrunal

Successivediscounts:first20%andthen10%.
Whichofthefollowingaretrue?
CustomerwillsavemoremoneyinDeal1
CustomerwillsavemoremoneyinDeal1
Customerwillsavesameamountofmoneyinbothdeals.
6.Jethalalfixesthesalepriceofhismobiles@15%abovethecostprice.Hesellsallhis
mobiles@12%lessthanthefixedprice.Whatishisprofitpercentage?
2.5%
1.2%
1.5%
2%
7.Jethalalsellshismobileson10%discountonmarkedprice.Heboughtamobile
@Rs.900andwantstoget10%profit.Whatshouldbethemarkedprice?
1275
1250
1175
1100
8.Jethalalwantstogive10%discountonallhismobilephones.Butatthesametime,he
alsowantstomake20%profit.Atwhatpercentabovethecostprice,shouldhemarkthe
priceofhisphones?
25%
30%
33.33%
37.5%
9.Considerthesestatements
I.MarkedPriceisalwayshigherthanCostprice
II.MarkedpriceisneverlowerthanSellingprice.
Whichofabovestatementsarecorrect?
Only1
Only2
Both1and2
None
10.HowcanonebecomeMasterofaptitude?
Bysearchingforacompetitiveexam,thatdoesnthaveaptitudequestions.
Bythinkinglikealoser,Mymathsisnotgoodanditcanneverbeimproved.Illjusthope
toclearsomeexamwithluckbychance.
BywatchingIndiaEnglandCrickettestseriesbecausethosecricketerswillgivemoneyto
startsomebusiness,shouldyoufailintheCSAT/IBPS/SSC/CMAT/CATorsomeother
http://mrunal.org/2012/11/aptitudeconceptsofmarkedpriceandsuccessivediscountsprofitlosswithoutstupidformulas.html/print/

8/9

21/04/2016

Mrunal[Aptitude]ConceptsofMarkedPriceandSuccessiveDiscounts(ProfitLoss)without(stupid)formulasMrunal

stupidexam.
Byuploadingmotivational/funnyphotosonFacebookandtaggingrandomfriendsinit.
Bypracticingmaximumquestionsathome.

AnswersandExplanations
Q. Ans. Explanation
1 B
2 A
3 B

Discountoncostprice=hellreceivelessmoneythanhisoriginal
investment=alwaysloss.
0.6<0.640.96
Successive:0.90.9=81
Onetime:10081=19
0.9*0.8*0.7=0.504
0.8*0.8=0.64

4 C

0.5
CustomerhastopayminimuminsituationC.

5 C

Orderorsequencedoesntmatterinsuccessivediscounts.
Dontbeconfusedwithvocabulary.Fixedprice,markedpriceconceptissame.

6 B

1.150.88100
=101.2
Profit%is101.2MINUS100=1.2%
Profitof10%on900=0.9xMarkedpriceMINUS900

7 D

0.1*900=0.9*M900
M=1100
Assumecostprice=Rs.100
Profitof20%on100=0.9xMarkedpriceMINUS100

8 C

0.2*100=0.9*m100
M=133.33
Somarkedpriceis133.33100=33.33%abovethecostprice.

9 C

Bothstatementsarecorrect.

10 ??

Lolz

ForthecompleteArchiveofallaptitudearticles,VisitMrunal.org/aptitude

ArticleprintedfromMrunal:http://mrunal.org
URLtoarticle:http://mrunal.org/2012/11/aptitudeconceptsofmarkedprice
andsuccessivediscountsprofitlosswithoutstupidformulas.html
Copyright2014Mrunal.Allrightsreserved.

http://mrunal.org/2012/11/aptitudeconceptsofmarkedpriceandsuccessivediscountsprofitlosswithoutstupidformulas.html/print/

9/9