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CSEC MATHEMATICS CONSUMER ARITHMETIC....
- 3. Appreciate the needfor both accuracy and speed in calculations Appreciate the advantages and disadvantages of different ways of investing money Appreciate that business arithmetic is indispensable in everyday life 3. 4. 1. 2. Develop the ability to perform the calculations required in normal business transactions, and in computing their own budgets, model and solve real-world problems
- 4. Percentage Profit andLoss Taxes Discount
- 5. Discount is reductionin the price of an item Tax is a mandatory payment or charge collected by governments cover the costs of general government services, goods, and activities. Profit is defined as the amount gained by selling a product, which should be more than the cost price of the product. A percentage is a fraction with a denominator of 100 e.g. 25 100 = 25% Loss occurs when you sell something for less than it cost.
- 6. Percentage Increase andDecrease § Percentage Increase = (100+ �������� %) 100 × �������� Example: A bus fare of $ 25 was increased by 6%. What is the new fare? Percentage Increase = (100−6) 100 × $ 25.00 = $ 23.50 § Percentage Decrease = (100−��������%) 100 × �������� Example: A stove priced at $ 1500 was decreased by 15%. What is the new price of the stove? Percentage Decrease = (100−15) 100 × $1500.00 = $ 1275.00 Sale Discount 15%
- 9. reduction in theprice of an item Discount = Marked Price - Discount Example 1: A student was given a discount of $35.00 on a book priced at $ 80.00. How much did she pay for the book? Marked Price = $ 80.00 Discount = $ 35.00 Discounted Price = Marked Price - Discount = $ 80.00 - $ 35.00 = $ 45.00
- 10. Percentage Discount = �������� ����������� × ��� Example 2: A shirt priced at $60.00 was sold at $ 45.00. What was the precentage discount? Marked Price = $ 60.00 Discounted Price = $ 45.00 Discount Price = Marked Price - Discounted Price = $ 60.00 - $ 45.00 = $ 15.00 Percentage Discount = �������� ������ ����� × 100 Percentage Discount = $15 $60 × 100 = 25 %
- 11. Example 3: Duringa Christmas sale, a television marked at $2000.00 and was offered a 20％ discount. What was the final price of the television? Marked Price = $ 2000.00 Discount = 20％ Discount = 20 100 × $2000.00 = $400.00 Final Price of Television = $ 2000.00 - $ 400.00 = $ 1600.00 OR PERCENTAGE DECREASE = (100−20) 100 × $2000.00 = $ 1600.00
- 12. Example 4: Ina sale, a radio was sold at $2071.00 after a 5％ discount was given. What was the marked price of the radio? Sale Price = $ 2071.00 Discount = 5％ Percentage Decrease = 100−5 100 × 100 = 95% 95% of Marked Price = $ 2071.00 Therefore Marked Price= $ 2071.00 ÷ 95% = $ 2180.00
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- 16. Recall : Profit isdefined as the amount gained by selling a product, which should be more than the cost price of the product. Loss occurs when you sell something for less than it cost. Profit = Selling Price (SP) - Cost Price (CP) Percentage Profit = ������ ���� ����� × ��� Loss = Cost Price (CP) - Selling Price (SP) Percentage Loss = ���� ���� ����� × ���
- 17. Example 1: Ashopkeepr bought 25 cricket balls at a total cost of $ 150.00. a) He sells them for $ 8.00 each. What is his percentage profit? Sale Price = $ 8.00 x 25 = $ 200.00 Profit = Selling Price (SP) - Cost Price (CP) = $200.00 - $150.00 = $50.00 Percentage Profit = ������ ���� ����� × 100 = 50 150 × 100 = 33 1 3 %
- 18. Example 1: Continued b)If he sells them for $5.00 each, what is his percentage loss? Sale Price = $ 5.00 x 25 = $ 125.00 Profit = Cost Price (CP) - Selling Price (SP) = $150.00 - $125.00 = $25.00 Percentage Profit = ���� ���� ����� × 100 = 25 150 × 100 = 17%
- 22. Recall : Tax isa mandatory payment or charge collected by governments cover the costs of general government services, goods, and activities. Sales Tax or Valued Added Tax (VAT) is paid on good and services to a supplier, for the government. It is normally calculated as a percentage of the basic price. Income tax is a type of tax governments impose on the income that businesses and individuals generate.
- 23. Sales Tax orValued Added Tax (VAT) is paid on good and services to a supplier, for the government. Income tax is a type of tax governments impose on the income that businesses and individuals generate. Example 1: The price of an automatic washing machine is $3473.00 vat exclusive. The VAT payable on items is 15%. Calculate the price of the washer inclusive of VAT. Marked Price of Washing Machine = $3473.00 VAT = 15% VAT is added to price therefore it is a percentage increase. Selling price of Washer = (100+15) 100 × $3473.00 = $3993.95
- 24. Example 2: Theprice of a lawn mower is $1050.00 vat inclusive. The VAT levied is 15%. Calculate the price of the washer inclusive of VAT. Selling Price of Lawn Mower = $1050.00 VAT = 15% VAT is included in price therefore it is a percentage increase. Percentage Increase = (100+15) 100 × 100 = 1155% 115% of Marked price of Lawn Mower = $1050.00 Marked price of Lawn Mower = $1050.00 ÷ 115% = $ 913.04
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- 27. Income Tax -is a major source of income for governments. It is calculated on workers earnings above a certain minimum. Gross income = income before tax is deducted. Net income - income after deduction of taxes. Every worker is granted specific non-taxable allowances, so that part of their income is tax free. These include: a) personal allowance b) spousal alowance c) child allowance d) dependant allowance e) national insurance allowance
- 28. A civil servant’ssalary is $30 000.00 per year. Her taxable income is found by deducting the following: a) personal allowance $ 150.00 per month b) spousal alowance $ 100.00 per month c) child allowance $40.00 per month d) national insurance allowance $50.00 per month She then pays tax at 30%. Calculate: 1. Taxable income Taxable Income = Gross salary per year - Tax free income Tax free income = personal allowance $ 150.00 per month x 12 = $ 1 800.00 spousal alowance $ 100.00 per month x 12 = $ 1 200.00 child allowance $ 40.00 per month x 12 = $ 480.00 national insurance allowance $50.00 per month x 12 = $ 600.00 $ 4 080.00 Taxable Income = $ 30 000.00 - $ 4 080.00 = $ 25 920.00
- 29. 2. The amountshe pay income tax Taxable income = $ 25 920.00 Tax = 30% Amount to be paid in tax = 30 100 × $25920.00 = $ 7 776.00 3. Net Income Net Income = Gross Salary - Income Tax = $ 30 000.00 - $ 7 776.00 = $ 22 224.00
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