Tag: Consumer Arithmetic

Percentage Profit and Percentage Loss

Percentage Profit and Percentage Loss Profit can be defined as the monetary gain made from a transaction. In consumer arithmetic, a profit is made if the selling price of a product is greater than the cost price (the price at which the product was bought) of the product. Therefore, Profit = Selling price – Cost…...

Discount

Discount A discount is a reduction in the selling price of a product. Discounts are usually given as a percentage of the selling price. Therefore, if the discount is y% The discount price is the difference between the selling price and the discount. That is, Example: A Mac book has a selling price of $1000.…...

Sales Tax

Sales Tax Sales tax is a fee charged by governments on products, and is calculated as a percentage of the selling price of a product. Depending on your country of residence, this sales tax might have a name, for example, in Jamaica the sales tax is called General Consumption Tax, G.C.T, in England and most…...

Simple Interest

Simple Interest Simple interest is the interest calculated on a principal sum. Principal is the sum of money invested in to, or borrowed from an institution, denoted as P. The money earned by an invested principal is called interest, and the money charged for borrowing a principal amount from an institution is also called interest,…...

Compound Interest

Compound Interest Compound interest is interest which is calculated on the principal sum for the first year and on the accruing amount for the remaining years. For example, to find the compound interest earned when $5000 is invested at 10% per annum for 3 years: -Find the interest earned for the first year. -Add the…...

Depreciation

Depreciation Most assets decrease in value over time and depending on the condition they are in (the wear); this decrease in value is called depreciation. To find the amount by which an asset depreciates over a year, the rate of depreciation (the percentage by which it decreases) is multiplied by the initial cost of the…...