IBA+BUP FBS

Math Lecture Sheet – 07

No. Contents Page
1 Basic Concepts 1
2 Class Practice: 5
• Profit loss
• Interest
3 Homework 9
4 Next Lesson 9

Student Name:

Prepared by Wasee Ahmed, BUP BBA General

Math & Analytical Instructor
 Basic Concepts:
Important Terms:
Profit → লাভ Selling Price → বিক্রয় মূলয Simple Interest → সরল মুনাফা

Loss → ললাকসান Cost Price → ক্রয়মূলয Compound Interest → চক্রিৃদ্ধি মুনাফা

Profit-Loss:
Profit and Loss formula is used in mathematics to determine the price of a commodity in the
market and understand how profitable a business is. Every product has a cost price and a selling
price. Based on the values of these prices, we can calculate the profit gained or the loss incurred
for a particular product.

Shortcuts:
1. One can get a profit only if selling price > cost price.
2. One can get a loss only if selling price < cost price.
3. Profit = Selling price - Cost price
4. Loss = Cost price - Selling price.
5. Profit or loss is always calculated on the cost.
• If an item is sold at 20% profit, it is sold at 120% of cost
• If an item is sold at 20% loss, it is sold at 80% of cost
6. Discount is calculated on selling price.
• If an item is sold at 20% discount, it is sold at 20% of the previous selling price
7. Marking up/ down means raising/ lowering the selling price. It is always calculated on
selling price.
• If an item is marked up by 20%, its selling price is 120% of previous selling price.
• If an item is marked down by 20%, its selling price is 80% of previous selling price.

1|Page
Prepared by Wasee Ahmed, BUP BBA General
Math & Analytical Instructor
 8. 100% of cost is the cost itself.
• A book was sold at 20% profit and profit was 40 tk.
So, 20% of cost = 40
100% of cost = 200.
The cost of the book was 200.
𝑆𝑃−𝐶𝑃
9. Percentage of Profit = x 100%
𝐶𝑃

• If the cost price of an article is 100 tk and selling price is 120 tk then calculate the
percentage of profit
Solution: Here, SP = 120, CP = 100
𝑆𝑃−𝐶𝑃
Percentage of Profit = x 100%
𝐶𝑃
120−100
= × 100
100

= 20%
𝐶𝑃−𝑆𝑃
10. Percentage of Loss = x 100%
𝐶𝑃

• If the cost price of an article is 120 tk and selling price is 100 tk then calculate the
percentage of loss
Solution: Here, CP = 100, SP = 120
𝐶𝑃−𝑆𝑃
Percentage of Loss = x 100%
𝐶𝑃
120−100
= × 100
100

= 20%
100+𝑃
11. If there is a profit of P%, Selling price, SP = x CP
100

• If the cost price of an article is 100 tk and the shopkeeper makes a profit of 20%
on the cost price. What is the selling price?
Solution: Here, CP = 100, P = 20
100+𝑃
Selling price, SP = x CP
100
100+20
= × 100
100

= 120

2|Page
Prepared by Wasee Ahmed, BUP BBA General
Math & Analytical Instructor
 100
12. If there is a profit of P%, Cost Price, CP = 100+𝑃 × SP

• If the selling price of an article is 120 tk and the shopkeeper makes a profit of 20%
on the cost price. What is the cost price?
Solution: Here, SP = 120, P = 20
100
Cost Price, CP = 100+𝑃 × SP
100
= 100+20 × 120

= 100
100−𝑃
13. If there is a loss of P%, Selling price, SP = × CP
100

• If the cost price of an article is 100 tk and the shopkeeper makes a loss of 20% on
the cost price. What is the selling price?
Solution: Here, CP = 100, P = 20
100−𝑃
Selling price, SP = × CP
100
100−20
= × 100
100

= 80
100
14. If there is a loss of P%, Cost Price, CP = 100−𝑃 × SP

• If the selling price of an article is 80 tk and the shopkeeper makes a loss of 20% on
the cost price. What is the cost price?
Solution: Here, SP = 80, P = 20
100
Cost Price, CP = 100−𝑃 × SP
100
= 100−20 × 80

= 100

3|Page
Prepared by Wasee Ahmed, BUP BBA General
Math & Analytical Instructor
Interest:
Interest is the extra money paid as cost of the principal. It is expressed in percentage. Interest
generally means yearly interest rate. 5% interest rate means 100 Tk principal earns 5 Tk interest
every year. Interest is of two types:

Simple Interest:
In Simple Interest the principal amount remains unchanged. So, at 5% interest rate,100 Tk will
earn 5 Tk interest every year. Formula for Simple Interest,

Simple Interest, I = PNR

Where, I = Interest

P = Principal

N = Time

R = yearly Interest rate

Compound Interest:
In Compound Interest the interest earned becomes part of principal and the interest rate applies
on the principal + interest amount. Formula for Compound Interest,

Compound Interest, I = 𝑃(1 + 𝑟)𝑛

Where, I = Total Amount = Principal + Interest

P = Principal

N = Time

R = yearly Interest rate

4|Page
Prepared by Wasee Ahmed, BUP BBA General
Math & Analytical Instructor
 Class Practice:
1) A bicycle originally cost $ 100 and was discounted 10%. After three months it was sold after
being discounted another 15%. How much was the bicycle sold for? (BBA 94-95)

(A) $76.50 (B) $75.00 (C) $73.50 (D) $71.00 (E) $69.50

2) A manufacturer of TV wants to make a profit of Tk. 3, 00,000 on sale of 200 TV sets. It costs
Tk. 10,000 each to make the first 100 TV sets and Tk. 7,500 each to make TV sets after the
first 100 sets. What should be the selling price of each TV sets in taka? (BBA 03-04)
(A) 10,250 (B) 10,350 (C) 10,500 (D) 10,750 (E) None of these
3) 5% merchandise of a trader was stolen and another 5% was damaged during transportation.
At what profit (in %) should he sell the rest of the goods so that he can make an overall profit
of 20%? (MBA 99-00)

(A) 22.25% (B) 27.5% (C) 30% (D) 33.3% (E) None of these

4) You buy equal number of two types of chocolates at the rate of Tk. 1/9 and Tk 1/11
respectively. If you now sell them at the rate of Tk. 1/10 what will be your profit/loss?
(BBA 96-97)
(A) 2% loss (B) 2% profit (C) 0 (D) 1% loss (E) 1% Profit
5) A merchant was selling an item at a certain price, then marked it down 20% for a spring sale.
During the summer, he marked the item down another 20% from its spring price. If the item
is sold at the summer price, then what percent of the original price did it sell for?

(A) 40% (B) 60% (C) 64% (D) 67% (E) None of these

6) An item was sold at 6% profit. If the cost was 4% less and the selling price was Tk. 4 more,
then the trader would have made a profit of 12.5%. What was the cost of the item?
(MBA 99-00)

(A) 100 (B) 120 (C) 150 (D) 200 (E) None of these

5|Page
Prepared by Wasee Ahmed, BUP BBA General
Math & Analytical Instructor
7) Two years ago, the cost of pen A was Tk. 70 more than that of pen B. But due to high demand,
the cost of pen A has increased by 100% and that of pen B has increased by Tk. 20. If today
you need a total of Tk. 250 to buy one pen of each type, what was the price in Taka of pen B
two 30 years ago?

(A) 30 (B) 40 (C) 50 (D) 70 (E) None of these

8) A shop sold a pair of shoes for Tk. 1600.00 and a pair of sandals for Tk. 960.00. It made a
profit of 20% on shoes and took a 10% loss on sandals. The shop made a __ ? (MBA 03-04)
(A) loss of 17.8% (B) loss of 15.0% (C) gain of 17.8%
(D) gain of 75.3% (E) None of these
9) A merchant buys two articles for Taka 1400 He sells one of them at a profit of 20% and the
other at a loss of 8%. He makes no profit or loss in the end. What is the selling price of the
article that he sold at a loss? (MBA 08-09)

(A) 1000 (B) 1200 (C) 800 (D) 900 (E) none of these

10) A trader makes a loss of 10% by selling a chair at a discount of 28% on the listed price. What
will be his profit/loss if he sells the chair at 90% of its listed price? (MBA 2013)

(A) 10% (B) 12.5% (C) 13.6% (D) 15% (E) none of these

11) Bashir bought an ordinary mobile and a cover for Tk, 2000. Malek bought a smart phone and
the same cover for Tk. 2000 more than what Bashir had paid. The price of the cover was one
tenth of the combined cost of the two mobiles. What was the cost of the ordinary mobile?
(BBA 14-15)

(A) Tk. 1000 (B) Tk. 1200 (C) Tk. 1500 D) Tk. 1600 (E) none of these

6|Page
Prepared by Wasee Ahmed, BUP BBA General
Math & Analytical Instructor
12) A customer came to a shop and asked the shop manager to give a 20% discount on listed
price of a pen. Moreover, for every 10 pens purchased he wanted two pens free of cost. The
manager agreed to the customer's demand because he could still make a profit of 20% on
cost price. If the cost price of a pen is x, what was the list price of the pen? (BBA 14-15)

(A) 1.75x (B) 1.8x (C) 1.9x (D) 2x (E) none of these

13) Nipu sold 100 pens, of which 50 are red and 50 are black, at Tk. 48 per pen. He made profit
of 20% on the black pens and made a loss of 20% on the red pens. What was the net gain or
net loss on this sale? (BBA 16-17)

(A) 0 (B) Gain of Tk. 200 (C) Loss of Tk. 200

(D) Gain of Tk. 400 (E) none of these

14) Johny bought a book and sold it at a loss of 10%. If he had bought it for 20% less and sold it
for Tk 55 more, he would have made a profit of 40%, What was the cost of the book?
(BBA 17-18)

(A) Tk 150 (B) Tk 250 (C) Tk 350 (D) Tk 450 (E) None of these

15) One laptop seller is planning to increase the price/laptop by BDT 10,000 from the next month.
Market research shows that with this increase in price he will be able to sell 6 fewer laptops
in the next month but the total revenue will increase by BDT 32,000 to BDT 760,000. What is
the number of laptops the seller will sell in the next month at this new price? (BBA 19-20)

A) 16 B) 20 C) 26 D) 32 E) 36

16) The cost prices of two articles, P and Q are in the ratio 5.7 and their selling prices, in the ratio
25, respectively. If the losses made on both the products are the same, what is the ratio
between the cost price and the selling price of Q? (MBA 17)

(A) 5:4 (B) 7:3 (C) 8:3 (D) 15:4 (E) none of these

7|Page
Prepared by Wasee Ahmed, BUP BBA General
Math & Analytical Instructor
17) During a sale, a store sells 20 percent of its remaining stock each day, without replenishment.
After four days, what fraction of its original stock has it sold?

(A) 1/625 (B) 256/625 (C) 61/125 (D) 64/125 (E) 369/625

18) By selling 60 oranges at 624 taka, loss is cost price of 8 orange, the cost price of one orange
is: (MBA 19-20)

(A) 10 (B) 10.5 (C) 11 (D) 11.5 (E) none of these

19) Arman wanted to have Tk. 39,200 as interest after 5 years. He has invested an amount in an
account for 1 year at 8% interest rate. From the 2nd year, he invested the principal amount
in another account offering 10% interest for 3 years. At the beginning of the fifth year he
invested the principal amount in another account at the rate of 11%. What was the principal
amount? (assume simple interest rate) (BBA 09-10)

(A) Tk. 50,000 (B) Tk. 80,000 (C) Tk. 90,000 (D) Tk. 70,000 (E) None of these

20) Fred and George Weasley together earned $37,570 from a business venture. They divided it
and each deposited his share in a bank. At the end of 9 years the amount Fred had in the bank
was the same as the amount George had at the end of 7 years. If the interest was
compounded annually at 10% per annum, what was Fred's share of money earned from the
business venture?

(A) $14,174 (B) $16,437 (C) $17,000 (D) $18,785 (E) $20,570

8|Page
Prepared by Wasee Ahmed, BUP BBA General
Math & Analytical Instructor
Answer Keys:
Mentors Math Qbank:
Concept 16 Question: 3, 7, 10, 13, 19, 26, 35, 37, 40, 41, 43, 44, 46, 49, 50, 55, 59, 60
Concept 17 Question: 5, 13

Homework:
Practise all maths of concept 16,17 from Mentors Math Qbank

Next Lesson:
● Angles
● Triangles

9|Page
Prepared by Wasee Ahmed, BUP BBA General
Math & Analytical Instructor