What Is Samar's Profit Percentage After Buying An Old Motorcycle For Rs. 35000, Spending Rs. 15000 On Repairs, And Selling It For Rs. 60000?

In this article, we will delve into a practical problem involving profit percentage, a crucial concept in mathematics and everyday financial transactions. We will analyze a scenario where Samar purchases an old motorcycle, invests in its repair, and subsequently sells it for a higher price. Our primary objective is to determine Samar's profit percentage from this venture. This involves calculating the total cost incurred by Samar, the revenue generated from the sale, and then applying the formula for profit percentage. Understanding this calculation is not only beneficial for solving mathematical problems but also provides valuable insights into real-world financial scenarios. This analysis will break down each step, ensuring clarity and a comprehensive understanding of how profit percentage is derived. We will also explore the significance of each component in the calculation, such as the initial purchase price, repair costs, and selling price, to appreciate their impact on the final profit percentage. By the end of this article, readers should be able to confidently tackle similar profit percentage problems and apply the concepts to their own financial decisions. This scenario highlights the importance of considering all costs involved in an investment before determining profitability. Furthermore, it emphasizes the practical application of mathematical principles in assessing the financial viability of a venture. Join us as we dissect Samar's motorcycle investment and unveil the profit percentage he earned, providing a clear illustration of financial calculations in action. The ability to accurately calculate profit percentage is essential for anyone involved in buying and selling, making informed investment decisions, or managing personal finances effectively. This article aims to enhance your understanding of this critical financial metric.

Understanding the Problem: Initial Investment and Repair Costs

To accurately calculate Samar's profit percentage, we must first understand the financial details of his motorcycle venture. Samar initially purchased an old motorcycle for Rs. 35,000. This initial purchase price is a significant component of the total cost and directly impacts the overall profitability of the investment. However, the cost didn't end there. Samar invested an additional Rs. 15,000 in repairing the motorcycle. These repair costs are crucial to consider because they add to the total expenses incurred by Samar. Overlooking these costs would lead to an inaccurate calculation of the profit percentage. The combined cost of the purchase price and the repair expenses represents Samar's total investment in the motorcycle. To determine the profit percentage, we need to compare this total investment with the final selling price. Understanding the breakdown of these costs allows us to assess the magnitude of the investment accurately. The initial purchase price sets the foundation for the financial outlay, while the repair costs reflect the additional expenses required to make the motorcycle sellable. Together, they provide a comprehensive view of Samar's financial commitment to this venture. This step is vital in ensuring that all expenses are accounted for, which is essential for a precise profit percentage calculation. Ignoring any component of the cost would skew the results and potentially lead to incorrect conclusions about the profitability of the venture. Therefore, we must meticulously consider both the initial purchase price and the subsequent repair costs to arrive at an accurate understanding of Samar's investment. This meticulous approach is crucial for making informed financial decisions and evaluating the true profitability of any investment.

Calculating Total Cost: Purchase Price Plus Repair Expenses

Now, let's proceed with calculating the total cost incurred by Samar. This involves adding the initial purchase price of the motorcycle to the expenses he incurred for its repair. Samar bought the motorcycle for Rs. 35,000 and spent Rs. 15,000 on repairs. Therefore, the total cost can be calculated as follows: Total Cost = Purchase Price + Repair Costs Total Cost = Rs. 35,000 + Rs. 15,000 Total Cost = Rs. 50,000 This calculation shows that Samar's total investment in the motorcycle amounted to Rs. 50,000. This figure is crucial because it represents the baseline against which we will measure his profit. A clear understanding of the total cost is essential for accurately determining the profit percentage. Any miscalculation here would directly affect the final profit percentage figure. This step underscores the importance of meticulous accounting when evaluating financial ventures. By precisely calculating the total cost, we establish a solid foundation for subsequent calculations. This thoroughness ensures that the profit percentage we derive accurately reflects Samar's financial outcome. The total cost serves as a critical benchmark for assessing the profitability of the investment. It allows us to compare the expenses incurred with the revenue generated from the sale, providing a clear picture of the financial performance. Thus, the accurate calculation of the total cost is a fundamental step in determining the profit percentage and evaluating the success of Samar's motorcycle venture. This comprehensive approach ensures that all financial aspects are considered, leading to a reliable assessment of profitability.

Determining Revenue: The Selling Price of the Motorcycle

After calculating the total cost, the next crucial step is to determine the revenue generated from the sale of the motorcycle. In this scenario, Samar sold the motorcycle for Rs. 60,000. This selling price represents the total revenue Samar received from his investment. The revenue is a key component in calculating the profit, as it will be compared against the total cost to determine the financial gain. A higher selling price, relative to the total cost, will result in a higher profit and, consequently, a higher profit percentage. Understanding the revenue is essential for assessing the financial viability of Samar's venture. The selling price directly influences the profit margin and the overall success of the investment. This figure provides a clear indication of the income generated from the sale and serves as the basis for calculating the profit. The selling price is a critical factor in determining the financial outcome of the venture. It reflects the market value of the motorcycle after repairs and any potential appreciation in value. The difference between the selling price and the total cost will reveal the profit earned by Samar. Therefore, accurately determining the revenue is vital for calculating the profit percentage and evaluating the financial performance of the investment. This step ensures that all income is accounted for, leading to a comprehensive assessment of the venture's profitability. The revenue figure is a cornerstone in the financial analysis, providing a clear measure of the income generated from the sale of the motorcycle. This income will be compared to the total costs incurred to determine the final profit.

Calculating Profit: Revenue Minus Total Cost

With the total cost and revenue determined, we can now calculate Samar's profit from the motorcycle sale. Profit is simply the difference between the revenue (selling price) and the total cost. In this case, Samar sold the motorcycle for Rs. 60,000 and his total cost was Rs. 50,000. Therefore, the profit can be calculated as follows: Profit = Revenue - Total Cost Profit = Rs. 60,000 - Rs. 50,000 Profit = Rs. 10,000 This calculation shows that Samar made a profit of Rs. 10,000 from selling the motorcycle. This profit figure is essential for determining the profit percentage, which will give us a clearer picture of the profitability of the venture. The profit represents the financial gain Samar realized after accounting for all expenses. It is a direct measure of the success of his investment in the motorcycle. A higher profit indicates a more successful venture, while a lower profit suggests that the investment was less fruitful. The profit figure serves as the numerator in the profit percentage calculation. It is the basis for assessing the return on investment. Understanding the profit is crucial for evaluating the financial performance of the venture. It allows us to compare the income generated with the expenses incurred, providing a clear picture of the financial outcome. Thus, accurately calculating the profit is a fundamental step in determining the profit percentage and evaluating the success of Samar's motorcycle venture. This comprehensive approach ensures that all financial aspects are considered, leading to a reliable assessment of profitability.

Determining Profit Percentage: Profit Divided by Total Cost, Multiplied by 100

Finally, we arrive at the calculation of the profit percentage, which is the ultimate measure of the profitability of Samar's venture. The profit percentage is calculated by dividing the profit by the total cost and then multiplying the result by 100 to express it as a percentage. Using the figures we have calculated so far, Samar's profit was Rs. 10,000 and his total cost was Rs. 50,000. The profit percentage can be calculated as follows: Profit Percentage = (Profit / Total Cost) * 100 Profit Percentage = (Rs. 10,000 / Rs. 50,000) * 100 Profit Percentage = 0.2 * 100 Profit Percentage = 20% This calculation reveals that Samar's profit percentage from the motorcycle sale is 20%. This means that for every Rs. 100 he invested, he earned a profit of Rs. 20. The profit percentage provides a standardized way to assess the profitability of an investment, allowing for comparison with other ventures. A higher profit percentage indicates a more profitable investment. The profit percentage is a crucial metric for evaluating the financial performance of Samar's venture. It provides a clear and concise measure of the return on investment. This percentage is particularly useful for comparing the profitability of different investments, as it normalizes the profit relative to the cost. Understanding the profit percentage is essential for making informed financial decisions. It allows investors to assess the potential returns from various ventures and choose the most profitable options. Thus, the accurate calculation of the profit percentage is a vital step in evaluating the success of Samar's motorcycle venture and making sound financial judgments. This comprehensive approach ensures that all financial aspects are considered, leading to a reliable assessment of profitability.

Conclusion: Samar's Successful Motorcycle Investment

In conclusion, by meticulously analyzing Samar's motorcycle venture, we have determined that his profit percentage is 20%. This calculation involved several key steps, including calculating the total cost (purchase price plus repair expenses), determining the revenue from the sale, calculating the profit (revenue minus total cost), and finally, applying the formula to find the profit percentage. Samar's successful investment demonstrates the practical application of mathematical concepts in real-world scenarios. The 20% profit percentage indicates a positive return on investment, highlighting the financial viability of his venture. Understanding the steps involved in this calculation is crucial for anyone involved in buying and selling, making investment decisions, or managing personal finances. The profit percentage provides a clear and standardized measure of profitability, allowing for easy comparison of different investment opportunities. This analysis underscores the importance of considering all costs and revenues when evaluating the financial performance of a venture. A comprehensive approach, like the one we have used, ensures an accurate assessment of profitability. Samar's motorcycle investment serves as a valuable example of how mathematical principles can be applied to assess financial outcomes. The 20% profit percentage reflects a successful venture, demonstrating the potential for financial gain through careful investment and management. This example reinforces the significance of understanding profit percentage in making informed financial decisions. By mastering this concept, individuals can effectively evaluate the profitability of various ventures and optimize their financial outcomes. Samar's success story highlights the importance of financial literacy and the ability to apply mathematical principles to real-world situations.

• Profit Percentage is a vital metric for assessing the profitability of investments.
• Accurate calculation requires considering all costs, including purchase price and repair expenses.
• Revenue from the sale is crucial for determining the final profit.
• The formula for profit percentage is (Profit / Total Cost) * 100.
• A higher profit percentage indicates a more profitable investment.