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# MONEY: PROFIT AND LOSS

## MEANING OF PROFIT

When the selling price of an article is higher or greater than the cost price, we have a profit or gain.

Profit = selling price – cost price

## MEANING OF LOSS

When the selling price is less than cost price we have a loss.

Loss = cost price – selling price

EXAMPLE 1

If a clock is bought for \$1,145 and sold for \$1,170, what is the gain or losss

Solution

Cost price of clock = \$1,145

Selling price = \$1, 170

Since the selling price is more than the cost price, we have a profit

Profit = \$1,170 – \$1,145 = \$25

EXAMPLE 2

By selling a tin of oil for \$1,320, a man made a profit of \$150. How much did he pay for it?

Solution

Selling price = \$1,320

Profit =  \$150

Cost price = \$1,320 – \$150 = \$1,170.

EXERCISE

1. I bought an exercise book for \$2500 and sold it for \$3,200. How much profit did I make
2. An article is sold for \$4,000 and the loss is \$1,050. Fin the cost price of the article
3. A wrist watch is bought for \$3,887 and sold for a profit of \$722. Find the selling price
4. A trader bought a dozen candles for \$1,020 and sold them all at \$960. What is the profit or loss of each candle?

See also

SIMPLE PROBLEMS ON PERCENTAGES

RATIO AND PERCENTAGE

PROFIT AND LOSS

PROBLEM ON MULTIPLICATION OF MONEY

Money

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