1.1.21 · D3Arithmetic & Number Systems

Worked examples — Profit, loss, discount, simple interest — basic applications

2,180 words10 min readBack to topic

Everything below rests on one habit from the parent: pick the base, then divide by it. If percentages themselves feel shaky, revisit Percentages first.


The scenario matrix

Every problem in this topic is one of these cells. We will hit all of them.

# Cell (case class) What makes it different Example
A Profit forward — CP & SP given direct, base = CP Ex 1
B Loss forward — SP < CP the sign flips Ex 2
C Back out the base (the trap) CP unknown, must divide not multiply Ex 3
D Zero / break-even SP = CP, profit = 0 Ex 4
E Full chain CP→MP→discount→SP→profit two different bases in one problem Ex 5
F SI forward — find interest & amount base = P, scaled by T Ex 6
G SI reverse — find R (or P or T) isolate one variable Ex 7
H Fractional time — months, not years convert T Ex 8
I Exam twist — combine ideas / limiting value word problem stitching cells Ex 9

The picture below is the map every example lives on: which base am I dividing by?

Figure — Profit, loss, discount, simple interest — basic applications

Cell A — Profit, forward


Cell B — Loss, forward (the sign flips)


Cell C — Back out the base (the classic trap)


Cell D — Zero / break-even (degenerate case)


Cell E — Full chain (two bases in one problem)


Cell F — Simple interest, forward

The figure below shows why simple interest is a straight line — equal steps every year.

Figure — Profit, loss, discount, simple interest — basic applications

Cell G — Simple interest, reverse (isolate a variable)


Cell H — Fractional time (months, not years)


Cell I — Exam twist (stitching cells + a limiting value)


Recall Which cell was which? (cover the answers)
  • Ex 3 "SP=1500 at 25% profit, find CP" is which trap? ::: Cell C — must divide by 1.25, never multiply by 0.75
  • Ex 4 profit% at break-even? ::: 0% — well-defined because we divide by CP (nonzero)
  • Ex 5 which base for the discount, which for the profit? ::: discount on MP (600), profit on CP (400)
  • Ex 8 why convert 9 months? ::: R is per year, so T must be in years → 9/12 = 0.75
  • Ex 9 required rate as T → ∞ for fixed interest? ::: it shrinks toward 0 like 26/T, never reaching 0

Connections

  • Percentages — every cell above is one percentage of one base.
  • Ratio and Proportion — profit% is the ratio Profit : CP written per 100.
  • Linear Equations — Cells C, G, I are single-variable equations in disguise.
  • Marked Price and Successive Discounts — extends Cell E to many discounts.
  • Compound Interest — the "stacking" sibling of Cells F–I.
  • Back to parent topic