Study Material — 4 PYQs (2022–2022) · Concept Notes · Shortcuts
IBPS RRB PO Successive Profit & Loss is a frequently tested subtopic — 4 previous year questions from 2022–2022 papers are included below with concept notes, key rules and shortcut tricks.
IBPS RRB PO Successive Profit & Loss — Past Exam Questions
4 questions from actual IBPS RRB PO papers · all shown free · click option to reveal solution
Exam Q 12022Previous Year Pattern
A vendor buys oranges at ₹40 per dozen. He sells them at ₹5 per orange. Due to spoilage, he loses 10% of the oranges. What is his profit percentage on the cost price?
Exam Q 22022Previous Year Pattern
A retailer buys a product at ₹600 per unit. He marks it up by 60% and offers a discount of 15%. He then sells the remaining stock at a further discount of 10% on the already discounted price. If he sells 100 units in the first transaction and 80 units in the second transaction, what is his total profit?
Exam Q 32022Previous Year Pattern
A shopkeeper buys an article at ₹500. He marks it up by 40%, then offers a discount of 10% on the marked price. Later, he realizes demand is high and increases the selling price by 20%. What is his overall profit percentage?
Exam Q 42022Previous Year Pattern
A retailer purchases items at ₹500 each. He sells 30% of items at 40% profit, 50% of items at 20% profit, and the remaining items at a loss. If his overall profit is 8%, at what loss percentage does he sell the remaining items?
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
• 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
9graded MCQs · easy to hard · full solution & trap analysis
A trader buys goods for ₹1000 and marks them up by 50%. He then offers a discount of 20% on the marked price. Later, he offers an additional discount of 10% on the already discounted price. What is his overall profit percentage?
Practice 2easy
A retailer buys a product for ₹800. He increases the price by 60% to set the marked price. He then gives two successive discounts: first 15%, then 10%. What is his profit percentage?
Practice 3easy
A vendor purchases items at ₹250 per unit. He marks up the price by 80% and offers a discount of 25% on the marked price. If he sells 20 units, what is his total profit?
Practice 4easy
A shopkeeper buys an article for ₹500. He marks it up by 40% and then gives a discount of 10% on the marked price. What is his profit percentage?
Practice 5easy
A shopkeeper sells two items. On the first item, he makes a profit of 25%, and on the second item, he makes a loss of 25%. If the cost price of both items is ₹400 each, what is his overall profit or loss percentage?
Practice 6easy
A merchant sells an item at a loss of 20%. If he had sold it for ₹120 more, he would have made a profit of 10%. What is the cost price of the item?
Practice 7medium
A shopkeeper buys an article for ₹500. He marks it up by 40% and 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 percentage on the article sold in the second transaction?
Practice 8medium
A trader buys goods for ₹8000. He sells 60% of the goods at a 30% profit and the remaining 40% at a 10% loss. What is his overall profit or loss percentage?
Practice 9medium
A shopkeeper marks an article 50% above its cost price. He gives a discount of 20% on the marked price. Later, due to a change in market conditions, he reduces the selling price by another 25%. If the final selling price is ₹1350, what is the cost price of the article?
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