Profit, Loss, Discounts, Successive Discount, True Discount, Banker's Discount Tricks and Formulas

Profit & Loss

  • If the value of a machine is ‘P’ in a year, then its value after ‘N’ years at a depreciation of ‘R’ p.c.p.a is Equation

  • If the value of a machine is ‘P’ in a year, then its value ‘N’ years ago at a depreciation of ‘R’ p.c.p.a is Equation

  • Selling Price Equation

  • Equation

  • Equation

  • Equation

  • Equation

Discount

  • Equation

  • Equation

Buy x and Get y Free

  • If articles worth Rs. x are bought and articles worth Rs. y are obtained free along with x articles, then the discount is equal to y and discount percentage is given by

    • Equation

Successive Discounts

When a discount of Equation is followed by another discount of Equation then Equation

False Weights

  • If an item is claimed to be sold at cost price, using false weights, then the overall percentage profit is given by

    • Equation

True Discount

Suppose a man has to pay Rs. 156 after 4 years and the rate of interest is 14% per Annum. Clearly, Rs. 100 at 14% will amount to Rs. 156 in 4 years. So, the payment ofRs. 100 now will clear off the debt of Rs. 156 due 4 years hence. We say that: Sum due Equation due 4 years hence;

  • Present Worth (P.W.) Equation

  • True Discount (T.D.) Equation

  • Equation .

  • Amount Equation

  • Interest is reckoned on R.W. and true discount is reckoned on the amount

  • Let rate Equation per annum & time Equation then,

  • Equation Equation

  • Equation Equation

  • Equation

  • Equation

  • When the sum is put at compound interest, then P.W. Equation

Banker’s Discount

  • Banker’s Discount (B.D.) is the S.I. on the face value for the period from the date on which the bill was discounted and the legally due date.

  • Banker’s Gain Equation for the unexpired time

  • When the date of the bill is not given, grace days are not to be added

  • Equation on bill for unexpired time

  • Equation ).) Equation Equation

  • Equation

  • Equation

  • Equation

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  • Equation

Discussions & Questions