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SBI Clerk Successive Profit & Loss

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This page covers SBI Clerk Successive Profit & Loss with complete concept notes, 12 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

12graded MCQs · easy to hard · full solution & trap analysis

All MCQs →
Practice 1easy

A shopkeeper buys an item for ₹500. He marks it up by 20% and then gives a discount of 10% on the marked price. What is his profit percentage?

Practice 2easy

A merchant sells an item at a loss of 15%. If he had sold it for ₹80 more, he would have made a profit of 5%. What is the cost price of the item?

Practice 3easy

A shopkeeper marks an item at ₹2000. He gives a discount of 25% and still makes a profit of 20%. What is the cost price of the item?

Practice 4medium

A shopkeeper sells an article at ₹1200 and makes a profit of 20%. He then buys another article at ₹1200 and sells it at a loss of 20%. What is his net profit or loss on both transactions?

Practice 5medium

A retailer buys 50 items at ₹100 each. He sells 30 items at a profit of 25% and the remaining 20 items at a loss of 10%. What is his overall profit or loss percentage?

Practice 6medium

A trader buys goods for ₹2000. He marks them up by 50% and offers a discount of 20% on the marked price. He then sells the remaining stock at a profit of 10% on the cost price. If he had 100 units, and sold 60 units in the first transaction and 40 units in the second, what is his total profit?

Practice 7medium

A merchant sells an item at 25% profit. If he had bought it at 20% less and sold it at 10% less, his profit would have been ₹60 more. Find the original cost price.

Practice 8hard

A retailer buys 100 items at ₹50 each. He sells 40 items at a 20% profit, 35 items at a 10% profit, and the remaining items at a 5% loss. What is his overall profit or loss amount?

Practice 9hard

A vendor buys apples at ₹40 per dozen. He sells 75% of the apples at ₹5 per apple and the remaining 25% at ₹3 per apple. What is his profit or loss percentage?

Practice 10hard

A shopkeeper marks up goods by 50% above cost price. He gives a discount of 10% on the marked price to the first customer and sells at a 20% profit to the second customer (on the same cost price). If the first customer paid ₹4050, what did the second customer pay?

Practice 11hard

A trader buys goods at ₹2000 per unit. He sells 60% of the stock at a 30% profit and the remaining 40% at a 10% loss. What is his overall profit or loss percentage?

Practice 12hard

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 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?

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
←False Weight / Fraudulent Dealer
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