Application To Profit And Loss
Ratio, Proportions, Percentage are used in expressing Profit and loss
Profit and loss:
Profit: Money earned
Loss: Money lost
Seetha bought two apples for 10 Rs, if she sells it to Dinesh at 15 Rs then she makes profit of 5 Rs, if she sells it to Dinesh for 5 Rs then she makes loss of 5 Rs.
Thus Profit and Loss helps us in understanding impact of a transaction in real life.
Here in transaction 1, Profit = (15 -10)/10=1/2= 50/100= 50%
Similarly Loss in transaction 2 is 50%