Business Mathematics
Business Mathematics deals with real-life financial calculations such as profit & loss, discount, simple and compound interest, ratio, and percentages. It is essential for commerce and competitive exams.
Fundamental Principles
Profit
Profit = Selling Price − Cost Price.
Loss
Loss = Cost Price − Selling Price.
Simple Interest
SI = (P × R × T) / 100.
Compound Interest
CI = P(1 + R/100)^T − P.
Essential Formulation Tips
- Memorize basic formulas.
- Convert percentages to fractions.
- Practice word problems regularly.
- Use shortcuts for faster calculation.
Shortcut Execution Techniques
- Profit % = (Profit / CP) × 100.
- Discount = Marked Price − Selling Price.
- Use ratio method for faster solutions.
- Approximate when options are far apart.
No structural solved cases documented for this level module.
Business Mathematics MCQs (Easy → Hard)
Solve 10 important business math questions covering profit loss, interest, and percentages.
Q1. Cost price of an item is $100 and selling price is $120. Find profit.
Q2. Find loss when CP = $200 and SP = $180.
Q3. Profit % when CP = $100 and SP = $150?
Q4. Simple interest on $1000 at 10% for 2 years?
Q5. Compound interest on $1000 at 10% for 2 years?
Q6. Marked price $500, discount 10%. Find SP.
Q7. Ratio of profit if CP ratio is 2:3 and time same?
Q8. A sells at 20% profit. If CP = $200, SP?
Q9. Find CI on $2000 at 5% for 2 years.
Q10. A shopkeeper marks goods 40% above CP and gives 20% discount. Profit %?