Formulas

Course Outcome 2

Net Price

**If you are given the list price and trade discount,

NP = LP - TD

**If you are given the list price and one %trade discount,

NP = LP x (100 - %TDR)

**If you are given the list price and series of %trade discount,

1. Calculate first the net price factor (NPF):

NPF = (100% - %TDR)(100% - %TDR)(100% - %TDR)

2. Multiply NPF to list price to get the net price:

NP = LP x NPF

Trade Discount

**If you are given the list price and %trade discount,

TD = LP x %TDR

**If you are given the list price and net price,

TD = LP - NP

**If you are given the list price and a series of %trade discount,

1. Calculate first the single equivalent discount (SED):

SED = 1 - (100%-%TDR)(100%-%TDR)(100%-%DR)

or

SED = 1 - NPF
2. Compute for the trade discount:

TD = LP x SED

Trade Discount Rate

**If you are given a series of %trade discount, compute for the SED.

**If you are given the net price and list price,

%TDR = 1 - (NP/LP)

**If you are given the trade discount and list price,

%TDR = TD/LP

Total Extended List Price

**If you are given 2 items,

Total Extended List Price = (Qty of Item1 x Price) + (Qty of Item2 x Price)

Perishable Goods

1. Compute first for the total cost.

Total cost = Qty x Price

2. Compute for the Total Expected Selling Price

**if mark-up is based on cost,
TESP = Total Cost (100% + %Markup)

**if mark-up is based on selling price,

Total Cost
TESP =
100 %−%Markup

3. Compute for the anticipated spoilage

AS = Qty x %spoilage

4. Compute for the final selling price

TESP
SP =
Qty−AS
 Selling Price
SP = Cost + Mark-up

**mark-up based on cost

SP = Total Cost (100% + %Markup)

**mark-up based on selling price

Total Cost
SP =
100 %−%Markup

Note: if the mark-up is not specified, it is automatically assumed to be based on cost.

Mark-up
MU = SP – C

**%Mark-up based on cost

%MU_cost = MU / C

**%Mark-up based on selling price

%MU_sp = MU / SP

Cost
C = SP – MU

** mark-up based on cost

SP
C=
100+Μ

** mark-up based on selling price

C = SP (100% - %MU)

Markdown
MD = OSP – SaP

%MD = MD / OSP

SaP = OSP (100% - %MD)

SaP
OSP =
100 %−%MD
 Course Outcome 3
Simple Interest
I = PRT

P = I / RT

R = I / PT

T = I / PR

Maturity value = I + P

Maturity value = P ( 1 + RT)

Exact Interest
¿ of days
I=PxRx
365

**if it is a leap year

¿ of days
I=PxRx
36 6

Ordinary Interest
¿ of days
I=PxRx
36 0

Compound Interest
mt
r
Compound Amount = Maturity Value = P 1+ ( ) m

Annual: m = 1
Semi annual: m =2
Quarterly: m = 4
Monthly: m = 12
Weekly: m = 52

Overtime Pay
OT Pay = # of hours x rate per hour x 1.5
 Double Pay
Double Pay = # of hours x rate per hour x 2

Salary Deductions
**if the salary given is not on a monthly basis, get first the equivalent monthly salary. For
weekly, multiply it by 4. For daily, multiply it by 20. For semi-monthly, multiply it by 2.

1. Compute SSS, Pag-ibig and Philhealth based on the computed monthly salary.
2. Compute tax based on the original given salary.
Multiply the tax by 4 if it is paid on a weekly basis.
Multiply the tax by 20 if it is paid on a daily basis.
Multiply the tax by 2 if it is paid on a semimonthly basis.
3. Add all deductions.
4. Subtract that from the computed monthly salary.