**PROFIT AND LOSS**

**Cost Price (C.P.) =**Cost price of an article is the price at which the article is purchased.

**Selling Price (S.P.) =**Selling price of an article is the price at which the article is sold.

**Profit or Gain**= Selling Price – Cost Price – S.P. – C.P.

**Marked Price (M. P.) or List Price or Catalogue Price**

Marked price
is the price that is marked or fixed on the product, by the manufacturers.

These
products are sold to the wholesale dealers reducing these prices by some
percentage. This reduction in the price is called 'Trade discount'.

Selling Price
= Marked Price – discount

= M. P. – d (where d is the
discount)

Some of mathmetical folmulae are unable to mention here. so kindly visit

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**COMPOUND INTEREST**

**Important Facts and Formulae:**

**Compound Interest:**

Sometimes it so happens that
the borrower and the lender gree to fix up a certain unit of time ,say yearly
or half-yearly or quarterly to settle the previous account.In such cases ,the amount
after the first unit of time becomes the principal for the 2nd unit ,the amount
after

second unit becomes the
principal for the 3rd unit and soon. After a specified period ,the difference
between the amount and the money borrowed is called Compound Interest

for that period.

**Formulae:**

Let principal=p,Rate=R% per
annum Time=nyears

1.When interest is compounded
Annually,Amount=P[1+(R/100)]n

2.When interest is compounded
Halfyearly,Amount=P[1+((R/2)100)]2n

3.When interest is compounded
Quaterly, Amount=P[1+((R/4)100)]4n

4.When interest is compounded
Annually,but time in fractionssay 3 2/5 yrs
Amount=P[1+(R/100)]3[1+((2R/5)/100)]

5.When rates are different for
different years R1%,R2%,R3%for 1st ,2nd ,3rd yrs
respectivelyAmount=P[1+(R1/100)][1+(R2/100)][1+(R3/100)]

6.Present Worth of Rs.X due n years hence is given by Present
Worth=X/[1+(R/100)]n
For problems regarding Compound Interest

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