{"id":93415,"date":"2025-06-01T11:50:08","date_gmt":"2025-06-01T11:50:08","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=93415"},"modified":"2025-06-01T11:50:08","modified_gmt":"2025-06-01T11:50:08","slug":"a-company-calculates-its-profit-or-loss-quarterly-the-company-makes-2","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-company-calculates-its-profit-or-loss-quarterly-the-company-makes-2\/","title":{"rendered":"A company calculates its profit or loss quarterly. The company makes 2"},"content":{"rendered":"

A company calculates its profit or loss quarterly. The company makes 25% profit, 20% loss and 20% loss in three consecutive quarters. What minimum profit or loss should the company make in fourth quarter to have no loss overall?<\/p>\n

[amp_mcq option1=”20% profit” option2=”20% loss” option3=”25% profit” option4=”25% loss” correct=”option3″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CISF-AC-EXE – 2024<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nTo have no loss overall, the company should make a minimum profit of 25% in the fourth quarter.
\n<\/section>\n
\nLet the initial capital be $C$.
\nQuarter 1: Profit of 25%. Capital becomes $C \\times (1 + 0.25) = 1.25C$.
\nQuarter 2: Loss of 20%. Capital becomes $1.25C \\times (1 – 0.20) = 1.25C \\times 0.80 = C$.
\nQuarter 3: Loss of 20%. Capital becomes $C \\times (1 – 0.20) = C \\times 0.80 = 0.8C$.
\nAfter three quarters, the capital is $0.8C$.
\n<\/section>\n
\nTo have no loss overall after four quarters, the final capital must be at least the initial capital, $C$. Let the profit percentage in the fourth quarter be $p$ (as a decimal). The capital after the fourth quarter will be $0.8C \\times (1+p)$.
\nWe need $0.8C \\times (1+p) \\ge C$.
\nDividing by $0.8C$ (assuming $C>0$): $1+p \\ge \\frac{C}{0.8C} = \\frac{1}{0.8} = \\frac{1}{4\/5} = 1.25$.
\n$p \\ge 1.25 – 1 = 0.25$.
\nSo, the minimum profit percentage in the fourth quarter must be $0.25 \\times 100\\% = 25\\%$.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

A company calculates its profit or loss quarterly. The company makes 25% profit, 20% loss and 20% loss in three consecutive quarters. What minimum profit or loss should the company make in fourth quarter to have no loss overall? [amp_mcq option1=”20% profit” option2=”20% loss” option3=”25% profit” option4=”25% loss” correct=”option3″] This question was previously asked in … <\/p>\n

Detailed SolutionA company calculates its profit or loss quarterly. The company makes 2<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1089],"tags":[1103,1102],"class_list":["post-93415","post","type-post","status-publish","format-standard","hentry","category-upsc-cisf-ac-exe","tag-1103","tag-quantitative-aptitude-and-reasoning","no-featured-image-padding"],"yoast_head":"\nA company calculates its profit or loss quarterly. The company makes 2<\/title>\n<meta name=\"description\" content=\"To have no loss overall, the company should make a minimum profit of 25% in the fourth quarter. Let the initial capital be $C$. Quarter 1: Profit of 25%. Capital becomes $C times (1 + 0.25) = 1.25C$. Quarter 2: Loss of 20%. Capital becomes $1.25C times (1 - 0.20) = 1.25C times 0.80 = C$. Quarter 3: Loss of 20%. Capital becomes $C times (1 - 0.20) = C times 0.80 = 0.8C$. After three quarters, the capital is $0.8C$.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/a-company-calculates-its-profit-or-loss-quarterly-the-company-makes-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A company calculates its profit or loss quarterly. The company makes 2\" \/>\n<meta property=\"og:description\" content=\"To have no loss overall, the company should make a minimum profit of 25% in the fourth quarter. Let the initial capital be $C$. Quarter 1: Profit of 25%. Capital becomes $C times (1 + 0.25) = 1.25C$. Quarter 2: Loss of 20%. Capital becomes $1.25C times (1 - 0.20) = 1.25C times 0.80 = C$. Quarter 3: Loss of 20%. Capital becomes $C times (1 - 0.20) = C times 0.80 = 0.8C$. After three quarters, the capital is $0.8C$.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/a-company-calculates-its-profit-or-loss-quarterly-the-company-makes-2\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:50:08+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"A company calculates its profit or loss quarterly. 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