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CAT 2025 Exam - Profit & Loss Questions With Solutions, LR & DI | Day 9
CAT is a highly competitive exam for admission to top B-schools like the IIMs. As part of our 60-day preparation series, Day 9 focuses on Profit & Loss and Logical Reasoning & Data Interpretation (LR & DI). This guide offers key concepts, solved examples, and practice sets to improve accuracy and speed. It aims to strengthen your understanding and enhance your ability to solve these questions confidently within CAT 2025's time constraints.
Part-1: Quantitative Aptitude for CAT 2025 Topic: Profit and Loss
Today, we are here with the extended part of the percentage, i.e., Profit and Loss. The Percentage is the basic building block of Arithmetic. Profit and Loss CAT questions are one of the most important topics for the CAT Exam. To solve the CAT Profit and Loss questions, you must first understand the basics of Profit and Loss. We can understand the basics well with the help of the profit triangle, as shown below:
The price at which we purchase something is the "cost price" (CP).
The price that we mark or print on the article is the marked price (MP).
The price at which we sell something is its selling price (SP).
Marked Up % = (MP-CP) x100/CP
Discount % = (MP-SP) x100/MP
Profit % = (SP-CP) x100/CP
If SP is less than CP, then profit is loss.
CAT Profit And ’Profit and Loss Type:
Questions involve direct calculation to find profit%, Discount% or Markup%.
Questions in which values are given in terms of profit%, Discount% or Markup%.
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Use NowAny two of these are given, and the third one is asked.
Questions on successive discounts.
Questions on actual weight and faulty weights.
Questions based on adulteration.
Questions based on basic formulas only, and many more.
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You have to prepare each type of Arithmetic question separately for a better understanding of the concept.
CAT Quant Questions With Solutions / Profit and Loss CAT previous year questions
The two previous year CAT questions on Profit and Loss are given below for a better understanding. The arithmetic section caries one of the greatest weightage in CAT arithmetic questions:
Q1. If a seller gives a discount of 15% on the retail price, she still makes a profit of 2%. Which of the following ensures that she makes a profit of 20%?[CAT Question Paper 2017 Slot 1]
Give a discount of 5% on the retail price
Give a discount of 2% on the retail price.
Increase the retail price by 2%.
Sell at retail price
Ans: D
15 % discount means If MP = 100; SP = 85
2 % profit means If CP = 100; SP = 102
In both SP should be same, so make them equal and we get
SP= 510, CP= 500 and MP = 600.
For 20% profit SP =600 which is equal to MP (Retail Price).
CAT Arithmetic Questions:
Q2. On selling a pen at 5% loss and a book at 15% gain, Karim gains Rs. 7. If he sells the pen at 5% gain and the book at 10% gain, he gains Rs. 13. What is the cost price of the book in Rupees? [CAT Question Paper 2019, Slot 1]
85
95
80
100
Ans: (3)
Let CP of pen = 100x; CP of book = 100y
Case 1
-5x + 15y = 7
Case 2
5x + 10y = 13
On solving both equations y = 4/5
CP of a book = 100x(4/5) = Rs 80
Prerequisite Before Practising CAT Profit and Loss Questions :
To prepare this topic for the CAT exam, students must have knowledge of
Fractions
Approximation
Tips to Prepare for CAT exam Profit and Loss questions
Learning conversions from Application of Percentage to fractions is important for this topic also.
Practice questions based on Application of Percentage well.
You can use the following tricks to solve the particular type of question:
If two articles were sold at an equal price with a profit of a% on one article while a loss of a% on another. Then, there will always be a loss of
If n articles were purchased at equal prices and sold at different prices. Then, net profit % is the average of all profit %. Loss % will be treated as negative of profit %.
In the questions of true weight/ false weight, the Selling Price has always been calculated on the reading while the Cost price has always been calculated on actual weight. After that compare the final selling price and final cost price to find profit or loss percent.
In the questions of successive discounts, use the concept of the successive percentage change.
References to Study (Theory):
Arun Sharma: A Quantitative Approach for CAT (7th Edition, Pg No: 235 - 242)
2iim Online Learning Classroom
References to Practice CAT Arithmetic Questions:
Quantitative Aptitude book by Abhijit Guha.
CAT previous year papers
Part-2: Logical Reasoning and Data Interpretation: Topic: Data Interpretation (Miscellaneous)
Previously, we have discussed general types of data interpretation. In this article, we are going to discuss the miscellaneous types of data interpretations for the CAT exam, like
Multi-Layered Pie Chart
Double Bar Graphs
Logic Based DI (most common in recent years)
Combination of two or more types of graphs in a single DI
i.e. table with a pie chart, line graph with bar graph, etc.
Such graphs are used to represent more data on a single graph.
In the CAT Exam and other management entrance exams, data interpretation is a must-come topic.
Preparing DI involves three basic steps:
Understanding Charts and Graphs
Understanding the logic or concept (More required in multi-layered DI and Caselet DI)
Be good at calculations.
Questions Based On Data Interpretation From CAT Previous Year Papers Comprehension:
The multi-layered pie-chart below shows the sales of LED television sets for a big retail electronics outlet during 2016 and 2017. The outer layer shows the monthly sales during this period, with each label showing the month followed by the sales figure of that month. For some months, the sales figures are not given in the chart. The middle-layer shows quarter-wise aggregate sales figures (in some cases, aggregate quarter-wise sales numbers are not given next to the quarter). The innermost layer shows annual sales. It is known that the sales figures during the three months of the second quarter (April, May, June) of 2016 form an arithmetic progression, as do the three monthly sales figures in the fourth quarter (October, November, December) of that year. [CAT Question Paper 2018]
Q1. What is the percentage increase in sales in December 2017 as compared to the sales in December 2016?
22.22
38.46
50.00
28.57
Solution: (4)
Sales in December 2017 = (500 – 150 -170) = 180
Sales in Q4 of 2016 is in AP:
Sales in October 2016 = 100; Sales in November 2016 = 100 + x; Sales in December 2016 = 100 +2x;
So, 100 + 100 + x + 100 + 2x = 360
X = 20
Sales in December 2016 = 100 +2x20 = 140
Increase in sales in December 2017 as compared to december 2016 = 40x100/140 = 28.56%
Q2. In which quarter of 2017 was the percentage increase in sales from the same quarter of 2016 the highest?
Q1
Q3
Q2
Q4
Ans: (1)
2016 | 2017 | %age increase | |
Q1 | 240 | 380 | 140*100/240 = 58.33% |
Q2 | 150 | 200 | 33.33% |
Q3 | 250 | 220 | -12% |
Q4 | 360 (calculated in Question 1) | 500 | 46.66% |
Prerequisite:
To prepare for data interpretation for the CAT exam, a student must have an understanding of
Average, ratios and percentages at fingertips
Pie graph, table graph, and other forms of data interpretation
Venn diagram
Tips To Solve Di (Misc.) For CAT Preparation
Read the graphs carefully.
Interpret the data from each kind of graph separately and then use them.
Solve small calculations mentally.
Examine each question separately and solve the easy one first.
Practice questions that involve more than 2 graphs in a single DI.
Shortcuts in calculations using Vedic math
References To Study (Theory):
LRDI for CAT and GMAT by Nishit K Sinha.
‘CAtKing.in’ (YouTube Channel)
References To Study (Practice):
https://www.mockat.com/ (free Mock Test)
How to Prepare for Data Interpretation for CAT by Arun Sharma (8th Edition)
CAT previous year papers
Part-3: VARC Topic: Strategy To Improve Reading Skills
Reading- is a term with which everyone is familiar. Reading can have multiple senses.
For some, reading means reading a newspaper. For some other people, it can be reading technical books, reading novels, etc. To read in an effective way, one must improve one’s reading skills.
Why Reading Skills Are Important?
Reading is an essential and basic building block for learning.
In daily life, the need to read things such as street signs or prescriptions proves reading is also an important life skill.
To reduce stress.
To read a long passage of 1000- 1500 words in 2–3 minutes (less time) and deduce important information from it.
Reading skills help someone to distinguish between important and not much important information.
To build confidence.
How Do Reading Habits Help You?
In increasing your vocabulary
In lowering stress
It will enhance your imagination and help you to solve long passages and LRDI sections.
Suggestions To Improve Reading Skills:
The first step to improving your reading skills. The reading ability questions for CAT exam are to develop reading habits by reading any of the following:
Newspapers
Magazines
Novels from good writers
Fiction and Non-Fiction books
Read the book of your interest.
Read the articles of interest.
Once the reading habit is developed, half of the work is done. Now start to analyse the information.
Always get an idea of every passage. Try to find out the keywords.
Always underline the important words or the words that are new to you.
Learn the underlined words and try to find an alternate for these words.
Try to find the uses of idioms and phrases while reading a novel or a book.
Try to avoid non-useful information while reading.
Such practices will lead to improved reading skills.
Some Suggestions To Read
The Secret- by Rhonda Byrne
Everything happens for a reason: and other lies I`ve loved- by Kate Bowler
Short Tricks to Solve Profit and Loss Questions
Profit and Loss questions are common in competitive exams like CAT. Knowing quick methods helps solve these problems accurately and efficiently. Here are seven useful tricks explained with examples:
1. Use the Basic Formula
Profit or Loss is the difference between Selling Price (SP) and Cost Price (CP).
Profit% or Loss% is calculated by dividing the profit or loss by CP and multiplying by 100.
Example:
If an item costs ₹500 and sells for ₹600, profit is ₹100 and profit percentage is 20%.
2. Relate SP, CP, Profit%, and Loss%
Selling Price can be found by adjusting the Cost Price based on profit or loss percentage.
SP = CP × (1 + Profit%) or SP = CP × (1 – Loss%).
Example:
For a cost price of ₹400 with a 25% profit, the selling price is ₹500.
3. Calculate Effective Discount for Successive Discounts
When multiple discounts are given one after the other, calculate the combined discount using the formula:
Effective Discount = 1 – (1 – d1) × (1 – d2), where d1 and d2 are decimal forms of discounts.
Example:
Successive discounts of 20% and 10% result in an effective discount of 28%.
4. Assume Cost Price as 100 for Easy Percentage Calculation
Taking CP as 100 simplifies calculations of profit or loss percentages.
Example:
If profit is 15%, the selling price will be 115 when CP is assumed 100.
5. Find Marked Price Using Profit and Discount
The marked price can be calculated by adjusting the cost price for profit and discount percentages.
Marked Price = CP × (1 + Profit%) ÷ (1 – Discount%).
Example:
With CP ₹400, profit 20%, and discount 10%, the marked price is approximately ₹533.33.
6. Calculate Profit or Loss Percentage Using Difference
When profit or loss amount is known, divide it by the cost price and multiply by 100 to get the percentage.
Example:
If CP is ₹250 and SP is ₹225, loss is ₹25, which is 10% of the cost price.
7. Handle Multiple Items Separately Before Combining
Calculate profit or loss on each item individually, then add or subtract to find overall profit or loss.
Example:
If you gain ₹30 on one item and lose ₹20 on another, your net profit is ₹10.
Tomorrow, we will return with a plan for Day 10. Put in the work and pay attention.
Thank You
All the best.
Frequently Asked Questions (FAQs)
Q: What is the best approach to prepare for Day 9’s topics in the 60-day CAT study plan?
A:
Focus on understanding core concepts, practice a variety of solved examples, and attempt timed quizzes on Profit & Loss and LR & DI to build accuracy and speed.
Q: Are previous year questions (PYQs) helpful for mastering LR & DI?
A:
Yes, PYQs provide insight into question patterns and difficulty levels, helping you strategise your approach and manage time effectively during the exam.
Q: What type of Profit & Loss problems are commonly asked in CAT?
A:
Questions often include calculating profit/loss percentages, marked price, discounts, successive discounts, and mixture problems involving multiple items.
Q: How can Logical Reasoning & Data Interpretation (LR & DI) practice improve my CAT score?
A:
Regular practice in LR & DI enhances critical thinking, pattern recognition, and data analysis skills, all essential for solving complex problems quickly and accurately.
Q: Why is mastering Profit & Loss important for CAT 2025?
A:
Profit & Loss questions are a staple in the Quantitative Aptitude section and often carry good scoring potential. Understanding these concepts helps improve accuracy and speed in the exam.
Q: Is 3 months enough for CAT?
A:
Three months might be enough if you are already well-versed in Quant, Verbal, and Logical Reasoning. But beginners might find it difficult to go through the entire syllabus and take enough mock tests within a short period of 3 months.
Q: Can I get 99 percentile in CAT in 3 months?
A:
Getting 99 percentile in three months is achievable but needs rigorous preparation, daily mock tests, and clear conceptual understanding. Candidates with experience in aptitude tests or very good problem-solving skills have a higher chance.
Q: Can I prepare for the CAT in 9 months?
A:
Yes, it is possible to prepare for CAT in 9 months. For effective preparation, follow our 60-day CAT preparation series in which we cover all the topics required for CAT.
Q: Will CAT 2025 be tough?
A:
CAT's unpredictable level of difficulty is known to everyone, but it also usually stays demanding with time limitation and stiff competition. With good preparation, firm concepts, and test-taking strategy, you are capable of mastering it effectively.
Q: When should I start preparing for CAT 2025?
A:
Optimally, you should begin prepping at least 9-12 months beforehand the examination. There should be plenty of time during this period to establish solid foundations, practice mocks, and finalize your strategy.
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Popular CAT Questions
Directions for question :
M/s Deloitte Touche Tohmatsu Limited, one of the top four audit and accounting firms in the world with headquarters at London, UK, and with an operational presence in 153 countries, hires Management Trainees (MT) from all the premier management institutes of India thrice every year, in the months of January, May and September.
Each new group of Management Trainees (MT) have to go through a four month rigorous training schedule, after which they have to pass through a test consisting of a written assessment and a case-analysis. The top hundred ranked Management Trainees (MT) based on the performance in the test are confirmed as Management Executives (ME). The rest are given the opportunity of undergoing the training for four months one more time along with the next batch of Management Trainees (MT) and then passing through the subsequent test consisting of the written assessment and case-analysis. The Management Trainee (MT) who fails to get confirmed as a Management Executive (ME) the second time is fired.
The scatter-graph below depicts the number of Management Trainees (MT) at Deloitte taking the tests from January 2020 till May 2022, and the vis-à-vis hired Management Trainees (MT) at Deloitte who were fired :
It is also known that for the month of September 2019 at Deloitte, 96 hired Management Trainees (MT) failed to be confirmed as a Management Executive (ME) the first time, and that 36 hired Management Trainees (MT) were fired.
Question :
In which test did the minimum number of Management Trainees (MT) get confirmed as a Management Executive (ME) in the second attempt ?
Option: 1
September 2020
Option: 2
May 2021
Option: 3
January 2021
Option: 4
January 2022
Directions for question:
The bar-graph given below shows the foreign exchange reserves of Nepal (in million Rupees) from 2014 to 2021. Answer the following questions based on the graph :
Question:
What was the percentage increase (rounded to the nearest integer, if deemed necessary) in the foreign exchange reserves in 2020 over 2016 ?
Option: 1 None
Option: 2 None
Option: 3 None
Option: 4 None
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