Word Problem Examples: Buying & Selling with Money

📚 Quick Study Guide

🔢 Cost Price (CP): The price at which an item is purchased. 💰 Selling Price (SP): The price at which an item is sold. 📈 Profit: If SP > CP, then Profit = SP - CP. 📉 Loss: If CP > SP, then Loss = CP - SP. ➕ Profit Percentage: Profit % = $\frac{Profit}{CP} \times 100$. ➖ Loss Percentage: Loss % = $\frac{Loss}{CP} \times 100$. 🏷️ Markup: The amount added to the cost price to determine the selling price. 🧮 Discount: A reduction in the original selling price. 🧾 Tax: An additional cost added to the selling price, usually a percentage.

📝 Practice Quiz

1. What is the profit if a toy is bought for $10 and sold for $15?
   1. $A) $2
   2. $B) $5
   3. $C) $10
   4. $D) $25
2. A shopkeeper buys a pen for $5 and sells it at a loss of $1. What is the selling price?
   1. $A) $3
   2. $B) $4
   3. $C) $6
   4. $D) $7
3. Sarah bought a book for $20 and sold it for $25. What is her profit percentage?
   1. $A) 10%
   2. $B) 20%
   3. $C) 25%
   4. $D) 30%
4. John sells a phone for $150, making a profit of $30. What was the cost price of the phone?
   1. $A) $100
   2. $B) $120
   3. $C) $180
   4. $D) $200
5. A retailer buys a shirt for $12 and marks it up by 50%. What is the marked price?
   1. $A) $6
   2. $B) $18
   3. $C) $20
   4. $D) $24
6. A store offers a 20% discount on a dress priced at $50. What is the final price after the discount?
   1. $A) $10
   2. $B) $30
   3. $C) $40
   4. $D) $60
7. If an item costs $100 and has a sales tax of 8%, what is the total cost?
   1. $A) $8
   2. $B) $92
   3. $C) $108
   4. $D) $110