Profit and Loss for LIC AAO, Download Free PDF

LIC AAO Exam is approaching and it is the right time to start your Quantitative Aptitude preparation. Many aspirants have already started their preparation, making the competition higher. But don’t worry, we are here to guide you in your journey and provide you with the necessary study material. Questions from Profit and Loss topics are previously asked in LIC AAO exam. This year too, it is expected to be asked for 2 to 3 marks. Profit and Loss is a part of Arithmetic Word Problems topic asked in the LIC AAO exam. Thus, it becomes an important topic to cover to gain a few marks in the Quant section of LIC AAO 2025 exam. Profit and Loss Questions and Answers free PDF is given to you through this blog. Continue reading below to get a conceptual understanding of the topic and download a free PDF to practice questions. 

What is Profit and Loss in LIC AAO?

Profit and Loss is a sub-topic of Arithmetic in the LIC AAO exam. Profit and Loss topic in math is about calculating Cost Price, Selling Price, Gain, Loss, and Percentage (loss or gain) of the product in the simplest possible way using a formula. To easily understand this topic you should know the basic calculations like fraction, percentage, ratio, average, and simplification. Also, if you remember the multiplication table till 20, it will help you easily grasp this topic. 

Profit and Loss Basic Concepts

The basic terms used in Profit and Loss questions are CP, SP, MP, Gain, Loss, and Discount. Let’s know in short the meaning of basic terms. 

• Cost Price (CP): The price at which an item is bought.
• Selling Price (SP): The price at which the item is sold.
• Profit (Gain): When SP > CP then, Profit = SP – CP.
• Loss: When CP > SP then, Loss = CP – SP.
• Marked Price (MP): The price printed on the product before any discount.
• Discount: A reduction given on MP.

What Kind of Questions are Asked from this Topic?

Some sample questions from the PDF are given below. Try to solve it in your mind without using Pen/ Paper. This will help you solve the question quickly and increase your problem solving speed.

Question 1: The marked price of an article is 50% more than its cost price and a discount of x% is given before selling the article. The percentage of profit earned on selling the article is (x/2) %. If the cost price of the article is Rs. 4800, then find the amount of discount given on selling the article.

A) Rs. 2400

B) Rs. 2000

C) Rs. 1500

D) Rs. 1800

E) Rs. 1600

Question 2: A chair with a cost price of Rs. 1500 is marked 34% above its cost price and sold after a discount of ‘x%’ for a profit of Rs. 108. If a TV whose cost price is 150% more than the marked price of the chair is sold at a profit of (x + 4) %, then find the selling price of the TV.

A) Rs. 6136

B) Rs. 6634

C) Rs. 6231

D) Rs. 6200

E) Rs. 5884

Question 3: A shopkeeper claimed to sell rice at 20% profit but uses a false weight which shows 900 gm as 1 kg. Find the overall profit percentage of the shopkeeper.

A) 

B) 30%

C) 25%

D) 

E) 32%

Question 4: Cost price of an article is Rs. 8,400. It is marked 40% above its cost price and sold after allowing two successive discounts of Rs. 480 and ‘d%’ respectively. If the profit earned is Rs. 624, then find the value of ‘d’.

A) 20

B) 15

C) 16

D) 25

E) 18

Question 5: Cost price of an article is Rs. (15n + 300) . It is marked 40% above its cost price and sold after allowing a discount of Rs. (3n + 60) . If the profit earned is Rs. 1,500, then find the value of ‘n’.

A) 360

B) 420

C) 540

D) 450

E) 480

Formulas and Tricks for Profit and Loss

Profit and Loss Basic Formulas are given below. Remember the formula while solving the questions. 

1. Profit % = (Profit / CP) × 100
2. Loss % = (Loss / CP) × 100
3. SP = CP × (100 + Profit%) / 100
4. SP = CP × (100 – Loss%) / 100
5. CP = SP × 100 / (100 + Profit%)
6. CP = SP × 100 / (100 – Loss%)
7. Discount % = (Discount / MP) × 100

Download Profit and Loss Questions and Answers for LIC AAO Free PDF

This PDF contains 10 practice questions with detailed solutions. Practice using a timer beside you and try to solve it within 10 minutes for best results. Try to solve in your mind first and if you don’t understand how to solve, then look at the solution given in the PDF. 

Click Here to Download LIC AAO Profit and Loss Free PDF!

Tips to Solve Profit and Loss Questions Faster

To solve Profit and Loss questions faster, one must do consistent practice using formulas and their application in different types of questions. If you have learned any short trick to solve a question like the successive discount formula, practice it daily. It is possible to score full marks in this topic if practiced well. 

Understand the Formulas and Practice their Direct Application

The first task is to understand the logic behind formulas or you can also directly start solving the question and refer to the given formula. With time you will naturally be able to remember the formula. 

Focus on Percentage Conversions for Quick Calculations

Focus on learning quick calculations and basic math concepts like multiplication, division, fraction, decimal, ratio, and table. This will help you solve the equation made after using the formula quickly. When you quickly solve complex calculation, it will be useful in every important topic.

Practice Short Tricks like Successive Percentage Changes

Short tricks used for successive percentage or successive discounts should be on your tip to quickly solve a profit and loss question. If you use the short trick without understanding logic behind it, you will end up getting confused in tricky questions that will come in the exam. When you get the approximate value, try to find a nearby value in the options given. 

Attempt at least 20 to 25 Profit and Loss Questions Daily from Topic tests

Attempt 20 to 25 questions daily to master this topic. PracticeMock topic tests contain 10 questions on each topic. You can attempt 2 to 3 topic tests to cover this important topic. Also, practicing in a time-bound condition helps you improve your speed in solving profit and loss questions.

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