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IBPS Clerk Successive Profit & Loss

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This page covers IBPS Clerk Successive Profit & Loss with complete concept notes, 16 graded practice MCQs, key points and exam-specific tips. Free to study.

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Concept Notes

Successive Profit & Loss— Rules & Concept

Core ConceptRead this first — the foundation of the topic
Core Concept

When profits and losses are applied one after another, we cannot simply add or subtract the percentages. Each percentage change acts on the new value, not the original price

Key Rules

If successive changes of a% and b% occur, the net effect formula is: Net% = a + b + (ab)/100. Use positive values for profit and negative values for loss. For three successive changes a%, b%, c%, first find net effect of any two, then apply the third change.

Formula BlockMemorise — at least one formula appears in every paper
• Two successive changes: Net% = a + b + (ab)/100
• Selling price after successive changes: SP = CP × (100+a)/100 × (100+b)/100
• Overall profit/loss = Net% of original cost price
Exam PatternsWhat examiners ask — read before attempting PYQs

Questions typically involve 2-3 successive transactions. Common scenarios include buying-selling chains, discount followed by profit, or multiple markups. SSC often asks for overall profit/loss percentage or final selling price.

ShortcutsUse these to save 30–60 seconds per question

For quick calculation, convert percentages to multipliers. 20% profit = 1.2, 10% loss = 0.9. Multiply all factors: 1.2 × 0.9 = 1.08 = 8% overall profit.

Worked ExampleSolve this step-by-step before moving on
1
Step 1

Identify the changes First transaction: +20% (profit) Second transaction: -10% (loss)

2
Step 2

Apply the formula Net% = a + b + (ab)/100 Net% = 20 + (-10) + (20 × (-10))/100 Net% = 20 - 10 - 200/100 Net% = 10 - 2 = 8%

3
Step 3

Verify using multiplier method Final value = 1000 × 1.20 × 0.90 = 1000 × 1.08 = 1080 Profit = 1080 - 1000 = 80 Profit% = 80/1000 × 100 = 8% Answer: 8% overall profit Alternate Method using SP calculation: After first sale: 1000 × 120/100 = 1200 After second sale: 1200 × 90/100 = 1080 Net profit = 1080 - 1000 = 80 Profit% = 8%

Exam TrapsCommon mistakes students make — avoid these

Students often add percentages directly (20% - 10% = 10%) ignoring the compounding effect. Always remember that each subsequent percentage works on the changed value, not the original price. The interaction term (ab)/100 is crucial and frequently overlooked.

Key Points to Remember

  • Successive changes cannot be added directly due to compounding effect
  • Formula for two changes: Net% = a + b + (ab)/100
  • Use positive values for profit, negative for loss in the formula
  • Multiplier method: Convert percentages to decimals and multiply
  • Each subsequent change acts on the new value, not original price
  • Interaction term (ab)/100 is often the key to correct answers
  • Three changes: Find net of first two, then apply third change
  • Final amount = Original × (100+a)/100 × (100+b)/100

Exam-Specific Tips

  • Net percentage formula for successive changes: a + b + (ab)/100
  • 20% profit converts to multiplier 1.2, 25% loss converts to 0.75
  • For equal successive profits of x%, net effect is x + x + x²/100
  • Two successive discounts of 10% each give net discount of 19%
  • Successive changes of +50% and -20% result in +20% net change
  • Three successive profits of 10% each give net profit of 33.1%
  • Formula remains same whether dealing with CP, SP, or marked price
Practice MCQs

Successive Profit & Loss — Practice Questions

16graded MCQs · easy to hard · full solution & trap analysis

All MCQs →
Practice 1easy

A shopkeeper buys goods for ₹5000. He sells them at a profit of 30%. The buyer sells the goods at a loss of 20%. What is the net profit or loss percentage for the original shopkeeper?

Practice 2easy

A shopkeeper buys an item at ₹500. He sells it at a profit of 20%, and the buyer sells it further at a profit of 25%. What is the final selling price?

Practice 3easy

A merchant purchases goods for ₹1000 and sells them at a loss of 10%. The buyer then sells the goods at a profit of 20%. What is the overall profit or loss percentage for the merchant?

Practice 4easy

A trader buys an article for ₹800. He marks it up by 50% and then gives a discount of 20% on the marked price. He then sells this discounted item to a customer who resells it at a profit of 10%. What is the final selling price?

Practice 5easy

A person buys a bicycle for ₹2000 and sells it at a profit of 15%. The buyer then sells it at a loss of 10%. What is the final selling price?

Practice 6medium

A vendor buys apples at ₹10 per dozen and sells them at ₹15 per dozen. Due to spoilage, he loses 20% of the apples. What is his overall profit or loss percentage?

Practice 7medium

A shopkeeper buys an article at ₹500. He marks it up by 40% and then gives a discount of 10% on the marked price. Later, he sells the remaining stock at a further discount of 20% on the already discounted price. What is his overall profit or loss percentage on the article sold in the second transaction?

Practice 8medium

A trader buys goods at ₹80 per unit. He marks them up by 50% and offers a discount of 10%. After selling 80% of the stock at this price, he reduces the price by another 25% for the remaining stock. If he bought 100 units, what is his total profit percentage?

Practice 9medium

A shopkeeper offers successive discounts of 15% and 10% on an article. If the final selling price is ₹306, what was the marked price?

Practice 10medium

A retailer marks an article 60% above its cost price. He gives a discount of 25% on the marked price. Later, due to a clearance sale, he gives an additional discount of 20% on the already discounted price. What is his net profit or loss percentage?

Practice 11hard

A retailer buys goods at ₹500 per unit. He sells 40% of stock at 20% profit, 35% at 10% profit, and the remaining at 5% loss. If the total profit is ₹1610, how many units did he buy?

Practice 12hard

A shopkeeper buys an item at ₹500. He marks it up by 40%, then offers a discount of 10% on the marked price. Later, he sells the remaining stock at a further discount of 20% on the already-discounted price. What is his overall profit or loss percentage on the item sold at the final discount?

Practice 13hard

A trader buys goods at ₹80 per unit. He sells 60% of the stock at 50% profit and the remaining 40% at 25% loss. If his total profit is ₹1440, how many units did he buy?

Practice 14hard

A shopkeeper marks up goods by 80% above cost price. He gives a discount of 25% on the marked price to the first customer and sells the remaining stock at marked price to other customers. If the profit on the first customer's purchase is ₹360, what is the total profit if he sells 80% of remaining stock at marked price?

Practice 15hard

A vendor buys apples at ₹40 per dozen. He sells 50% of the stock at ₹50 per dozen and the remaining at ₹35 per dozen. If his overall loss is ₹240, how many dozens did he buy?

Practice 16hard

A merchant sells an item at a 25% profit. If he had bought it at 20% less and sold it at 20% more, his profit would have been ₹480 more. What is the cost price of the item?

60-Second Revision — Successive Profit & Loss

  • Remember: Net% = a + b + (ab)/100 for two successive changes
  • Trick: Use multipliers for faster calculation - multiply all factors
  • Formula: SP = CP × (100+a)/100 × (100+b)/100
  • Trap: Never add successive percentages directly
  • Method: For three changes, find net of any two first, then apply third
  • Quick check: Positive result means profit, negative means loss
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