Mahesh bought a computer worth of \(₹\)5000, and he sold it to his friend on \(₹\)5390.
In this transaction, he will get \(₹\)390 as a profit.
But can you find the profit percentage of this transaction?
We can use this formula to find the profit percentage if we know the profit and cost price of the product.
Profit \(\% =\)
Therefore the profit percentage of this transaction is 7.8 \(\%\).
Measuring the profit or loss in terms of percentage is an easy and convenient method.
That is why most of the shop keepers are mention profit or loss of their product in percentage.
We can also apply the same concept to find the original rate of the product if a certain percentage discount is applied to that product.
We will see some exercises to understand this concept better.