Arithmetic Word Problems
Syllabus Unit: Quantitative Aptitude
Why it matters
Chapter overview
Arithmetic Word Problems are where SBI PO Quant tests applied formulas rather than raw calculation — profit/loss, speed, work, and ratio-based questions each have a fixed formula toolkit, and the exam rewards recognizing which toolkit a word problem calls for within the first two lines.
1Profit, Loss & Discount
Cost price, marked price, and selling price form a fixed chain — every profit/loss/discount question is just walking that chain in the right direction.
Learning Objectives
- Define cost price (CP), marked price (MP), selling price (SP), and discount, and how they relate to each other.
- Compute profit or loss percentage directly from CP and SP.
- Apply successive discounts correctly using the successive-change formula, not simple addition.
- Solve for an unknown marked price given a target profit percentage after a stated discount.
Key Terms
Every profit, loss, and discount question walks the same chain: Cost Price → mark-up → Marked Price → discount → Selling Price → compare back to Cost Price for profit or loss. Assuming CP = 100 turns almost any such question into simple percentage arithmetic.
Worked example
CP = 100. Marked 25% above CP gives MP = 125. A 10% discount on MP gives SP = 125 × 0.9 = 112.5. Profit = 112.5 − 100 = 12.5, so profit % = 12.5% — note this is not simply 25% − 10%.