Profit and Loss - Important Formulas

1. When a person sells two similar items, one at a gain of say x%, and the other at a loss of x
%, then the seller always incurs a loss given by:
Common Loss and Gain % 2 x 2
Loss % = = .
10 10
2. If a trader professes to sell his goods at cost price, but uses false weights, then
Error
Gain % = x 100
(True Value) - (Error) %.

Calendar - Important Formulas

1. Odd Days:
We are supposed to find the day of the week on a given date.
For this, we use the concept of 'odd days'.
In a given period, the number of days more than the complete weeks are called odd days.
2. Leap Year:
(i). Every year divisible by 4 is a leap year, if it is not a century.
(ii). Every 4th century is a leap year and no other century is a leap year.
Note: A leap year has 366 days.
Examples:
i. Each of the years 1948, 2004, 1676 etc. is a leap year.
ii. Each of the years 400, 800, 1200, 1600, 2000 etc. is a leap year.
iii. None of the years 2001, 2002, 2003, 2005, 1800, 2100 is a leap year.
3. Ordinary Year:
The year which is not a leap year is called an ordinary years. An ordinary year has 365 days.
4. Counting of Odd Days:
i. 1 ordinary year = 365 days = (52 weeks + 1 day.)
1 ordinary year has 1 odd day.
ii. 1 leap year = 366 days = (52 weeks + 2 days)
1 leap year has 2 odd days.
iii. 100 years = 76 ordinary years + 24 leap years
= (76 x 1 + 24 x 2) odd days = 124 odd days.
= (17 weeks + days) 5 odd days.
Number of odd days in 100 years = 5.
Number of odd days in 200 years = (5 x 2) 3 odd days.
Number of odd days in 300 years = (5 x 3) 1 odd day.
Number of odd days in 400 years = (5 x 4 + 1) 0 odd day.
Similarly, each one of 800 years, 1200 years, 1600 years, 2000 years etc. has 0 odd days.
2. Day of the Week Related to Odd Days:
No. of days: 0 1 2 3 4 5 6
Sun Mon Wed Thurs Fri
Day: Tues. Sat.
. . . . .
 Numbers - Important Formulas
Some Basic Formulae:
i. (a + b)(a - b) = (a2 - b2)
ii. (a + b)2 = (a2 + b2 + 2ab)
iii. (a - b)2 = (a2 + b2 - 2ab)
iv. (a + b + c)2 = a2 + b2 + c2 + 2(ab + bc + ca)
v. (a3 + b3) = (a + b)(a2 - ab + b2)
vi. (a3 - b3) = (a - b)(a2 + ab + b2)
vii. (a3 + b3 + c3 - 3abc) = (a + b + c)(a2 + b2 + c2 - ab - bc - ac)
viii. When a + b + c = 0, then a3 + b3 + c3 = 3abc.

Logarithm - Important Formulas

1. Logarithm:
log
logb x x
loga x = = .
logb log
a a

2. Common Logarithms:
Logarithms to the base 10 are known as common logarithms.
3. The logarithm of a number contains two parts, namely 'characteristic' and 'mantissa'.
Characteristic: The internal part of the logarithm of a number is called its characteristic.
Case I: When the number is greater than 1.
In this case, the characteristic is one less than the number of digits in the left of the decimal point in
the given number.
Case II: When the number is less than 1.
In this case, the characteristic is one more than the number of zeros between the decimal point and
the first significant digit of the number and it is negative.
Instead of -1, -2 etc. we write 1 (one bar), 2 (two bar), etc.

Examples:-
Number Characteristic Number Characteristic
654.24 2 0.6453 1
26.649 1 0.06134 2
8.3547 0 0.00123 3
Mantissa:
 The decimal part of the logarithm of a number is known is its mantissa. For mantissa, we look
through log table.

The integral part of a common logarithm is called the characteristic and the non-negative
decimal part is called the mantissa. Suppose, log 39.2 = 1.5933, then 1 is
the characteristic and 5933 is the mantissa of the logarithm.

True Discount - Important Formulas

IMPORTANT CONCEPTS
Suppose a man has to pay Rs. 156 after 4 years and the rate of interest is 14% per annum. Clearly,
Rs. 100 at 14% will amount to R. 156 in 4 years. So, the payment of Rs. now will clear off the debt of
Rs. 156 due 4 years hence. We say that:
Sum due = Rs. 156 due 4 years hence;
Present Worth (P.W.) = Rs. 100;
True Discount (T.D.) = Rs. (156 - 100) = Rs. 56 = (Sum due) - (P.W.)
We define: T.D. = Interest on P.W.; Amount = (P.W.) + (T.D.)
Interest is reckoned on P.W. and true discount is reckoned on the amount.
IMPORTANT FORMULAE
Let rate = R% per annum and Time = T years. Then,
100 x Amount 100 x T.D.
1. P.W. = =
100 + (R x T) RxT
(P.W.) x R x T Amount x R x T
2. T.D. = =
100 100 + (R x T)
3. Sum (S.I.) x (T.D.)
= (S.I.) - (T.D.)
4. (S.I.) - (T.D.) = S.I. on T.D.
Amount
R T
5. When the sum is put at compound interest, then P.W. =
1 + 10
0

Stocks and Shares - Important Formulas

1. Stock Capital:
The total amount of money needed to run the company is called the stock capital.
2. Shares or Stock:
The whole capital is divided into small units, called shares or stock.
For each investment, the company issues a 'share-certificate', showing the value of each share and
the number of shares held by a person.
The person who subscribes in shares or stock is called a share holder or stock holder.
3. Dividend:
The annual profit distributed among share holders is called dividend.
Dividend is paid annually as per share or as a percentage.
4. Face Value:
 The value of a share or stock printed on the share-certificate is called its Face Value or Nominal
Value orPar Value.
5. Market Value:
The stock of different companies are sold and bought in the open market through brokers at stock-
exchanges. A share or stock is said to be:
i. At premium or Above par, if its market value is more than its face value.
ii. At par, if its market value is the same as its face value.
iii. At discount or Below par, if its market value is less than its face value.
Thus, if a Rs. 100 stock is quoted at premium of 16, then market value of the stock = Rs.(100 + 16) =
Rs. 116.
Likewise, if a Rs. 100 stock is quoted at a discount of 7, then market value of the stock = Rs. (100
-7) = 93.
6. Brokerage:
The broker's charge is called brokerage.
(i) When stock is purchased, brokerage is added to the cost price.
(ii) When stock is sold, brokerage is subtracted from the selling price.
Remember:
i. The face value of a share always remains the same.
ii. The market value of a share changes from time to time.
iii. Dividend is always paid on the face value of a share.
iv. Number of shares held by a person
Total Investment Total Income Total Face Value
= Investment in 1 share = Income from 1 = Face of 1 share .
share
7. Thus, by a Rs. 100, 9% stock at 120, we mean that:
i. Face Value of stock = Rs. 100.
ii. Market Value (M.V) of stock = Rs. 120.
iii. Annual dividend on 1 share = 9% of face value = 9% of Rs. 100 = Rs. 9.
iv. An investment of Rs. 120 gives an annual income of Rs. 9.
v. Rate of interest p.a = Annual income from an investment of Rs. 100
9 1
= x 100 % = 7 %.
120 2

Time and Distance - Important Formulas

km/hr to m/sec conversion:
5
x km/hr = xx m/sec.
18

m/sec to km/hr
conversion:
18
x m/sec = xx km/hr.
5
 Compound Interest - Important Formulas
1. Let Principal = P, Rate = R% per annum, Time = n years.
2. When interest is compound Annually:
1 R n
Amount = P
+ 100
3. When interest is compounded Half-yearly:
(R/2) 2
Amount = P 1 + n
100
4. When interest is compounded Quarterly:
(R/4) 4
Amount = P 1 + n
100

5. When interest is compounded Annually but time is in fraction, say 3 years.

3
Amount = P 1+ R x 1+ R
100 100
6. When Rates are different for different years, say R1%, R2%, R3% for 1st, 2nd and 3rd year
respectively.
R1 R2 R3
Then, Amount = P 1 + 1+ 1+ .
100 100 100
7. Present worth of Rs. x due n years hence is given by:
x
R
Present Worth = .
1 + 10
0

Partnership - Important Formulas

1. Partnership:
Suppose A invests Rs. x for p months and B invests Rs. y for q months then,
(A's share of profit) : (B's share of profit)= xp : yq.
2. Working and Sleeping Partners:
A partner who manages the the business is known as a working partner and the one who simply
invests the money is a sleeping partner.

Area - Important Formulas

1. Area of a triangle = x Base x Height.

2. Area of a triangle = s(s-a)(s-b)(s-c)

where a, b, c are the sides of the triangle and s = (a + b + c).

3
3. Area of an equilateral triangle = x (side)2.
4
4. Radius of incircle of an equilateral triangle of a.
 side a = 23
a
5. Radius of circumcircle of an equilateral triangle of side a = .
3
6. Radius of incircle of a triangle of area and semi-
.
perimeter r = s

Permutation and Combination

Permutations:

An Important Result:
If there are n subjects of which p1 are alike of one kind; p2 are alike of another kind; p3 are alike of
third kind and so on and pr are alike of rth kind,
such that (p1 + p2 + ... pr) = n.
Then, number of permutations of these n objects is n!
= (p1!).(p2)!.....(pr!)

Decimal Fraction - Important Formulas

Alligation or Mixture - Important Formulas
Banker's Discount - Important Formulas