This Bankers Tutorial article is independent educational material. Examples are illustrative, and changing rules or examination requirements should be checked at the official source.
01 / UNDERSTANDING
Understand the idea
A customer sees the discount while a retailer sees the resulting selling price relative to cost. Following both viewpoints explains why two correct percentages can describe the same sale differently.
02 / UNDERSTANDING
The concept in context
Profit percentage conventionally compares profit with cost price in basic aptitude problems. Discount percentage compares the reduction with marked price. These use different bases, so subtracting a discount percentage from a markup percentage does not generally give the final profit percentage. Name each price before applying its multiplier.
A transaction may include transport or other stated purchase costs, which belong in the relevant cost base under the question’s assumptions. Read those assumptions carefully instead of importing a real-world fee rule. A final selling price below marked price can still exceed cost, so a discount does not necessarily imply a loss.
03 / UNDERSTANDING
A worked learning case
Original educational case. A shop buys an item for ₹800, marks it at ₹1,000 and gives a 10% discount. Selling price is ₹900. The ₹100 profit is 12.5% of cost, while the discount is 10% of marked price. Subtracting 10 from the 25% markup would incorrectly predict a 15% profit instead of 12.5%.
ORIGINAL EDUCATIONAL PRACTICE
Try it before you check.
Original practice: An item costs ₹500 and sells for ₹600. What is the profit percentage on cost?
Show the answer and reasoning
20%.
Profit is selling price minus cost: ₹600 − ₹500 = ₹100. Divide that profit by the cost of ₹500, then multiply by 100, giving 20%. Dividing by selling price would produce a different margin measure, so the words on cost fix the denominator required here.
Two traps to watch for.
- Subtracting discount directly from markup percentages.
- Using marked price as the profit denominator.
YOUR TOPIC-SPECIFIC LEARNING MAP
Turn understanding into practice
Label cost, marked and selling prices.
Apply changes to their own bases.
Recompute profit from final selling price.
Explain the idea, apply it to a new situation, then check what changed in your reasoning.
BANKERS TUTORIAL · SOURCE NOTES
Keep the source alongside your notes.
Official links provide subject context and authoritative reference material. This guide’s explanation, scenario and question are original Bankers Tutorial learning content.
- sbi.bank.in https://sbi.bank.in/web/careers/current-openings
- sbi.bank.in https://sbi.bank.in/webfiles/uploads/files_2627/09/SBI_JA-Customer_Support_Sales-IH_Pre-2026-27_Eng.pdf
For SBI preparation, check the current official notice before relying on changing dates, rules or examination requirements.
