Business Mathematics
Cost Price
September 20, 2021
Chapter 10 - BUYING
I. Solve the following problems
1. Net Price = List Price - Trade Discount
Trade Discount = List Price - Net Price
Trade Discount = ₱160 - ₱100
Trade Discount = ₱60
___________________________________________
2. Electronics Wholesaler
Trade Discount = ₱4000 x .20%
=₱800
Trade Discount = ₱4000 x 6 ¾%
=₱270
Total Trade Discount = ₱800 + ₱270 = ₱1070
Competing Wholesaler
Trade Discount = ₱3500 x 10%
= ₱350
Additional rate of discount needed
=₱1070 - ₱350
= ₱720
=720/3500 x 100%
=20.57%
___________________________________________
3. Net Price = List Price x (1 - discount rate)
List Price = Net Price / 1 - discount rate
= ₱24 / (1 - 25%)
List Price = ₱32
Trade Discount = List Price x discount rate
= ₱32 x 25%
Trade Discount = ₱8
___________________________________________
4. Trade Discount = List Price x discount rate
= ₱649.50 x 33 1/3 %
Trade Discount = ₱216.5
Net Price = List Price (1 - 33 1/3%)
= ₱649.50 (1 – 33 1/3% )
Net Price = ₱433
___________________________________________
5. Trade Discount = ₱21,150 x 16 2/3%
= ₱3,525
Trade Discount = ₱21,150 x 7 1/2%
= ₱1,586.25
Total Trade Discount = ₱3,525 + ₱1586.25
= ₱5,111.25
Net Price = ₱21,150 - ₱5,111.25 =
₱16,038.75
___________________________________________
6. Net Price = List Price x (1 - discount rate)
List Price = Net Price / 1 - discount rate
List Price = ₱79.95 / 1 - ( 17 1/2% + 5%)
List Price = ₱97.95
7.
= ₱1,200 x 4%
=₱48
=₱1,200-₱48
=₱1,152
=₱1,152/20%
=₱5,760
___________________________________________
8. List Price = ₱1,150 x 20%
=₱230
=₱1,150 + ₱230
List Price = ₱1,380
Rate of Discount = ₱1,150 x 8%
=₱92
=₱92/₱1,380 x 100%
=6.7%
___________________________________________
9. Trade Discount = ₱6,000 x 25% = ₱1,500
Trade Discount = ₱6,000 x 20% = ₱1,200
Total Trade Discount=₱1,500 + ₱1,200 =
₱2,700
Net Price = List Price - Trade Discount
Net Price = ₱6,000 - ₱2,700 = ₱3,300
___________________________________________
10.
___________________________________________
II. Solve the following problems.
1) ₱3.4 million x 8.5% = ₱289,000
=₱3.4 million - ₱289,000
=₱3,111,000 is the total
amount a customer should
pay for the car
___________________________________________
2) ₱40,000 x 7 1/2% = ₱3,000
=₱40,000 - ₱3,000
=₱37,000 was paid for the
motorbike
___________________________________________
3) September 10 – 22 is 12 days
= 2/15 payment term
Net Price = ₱5,000 x (1 - 2%)
=₱5,000 x .98
=₱4,900 is the amount that
should be paid on September
22 to settle the invoice
___________________________________________
4) Oct. 31 – Nov. 15 is 15 days
=1/30 payment term
Net Price = ₱10,000 x (1 - 1%)
=₱10,000 x .99
=₱9,900 is the exact amount
to be remitted
 5) June 10 – July 6 is 26 days
= 2/30 payment term
Net Price = ₱960 x (1 – 2%)
=₱960 x .98
=₱940.8 is the amount that
the clerk should pay on July
6 to settle the invoice
___________________________________________
6) March 31 – April 18 is 18 days
= 3/20 payment term
Cash Discount = ₱15,000 x 3%
= ₱450
___________________________________________
7) First Invoice = Jan.15 – Feb. 5 = 21 days
= 1/30 payment term
Net Price = ₱5,000 x (1 – 1%)
=₱5,000 x .99
=₱4,950
Second Invoice = Jan. 22 – Feb 5 = 14 days
= 1/30 payment term
Net Price = ₱7,500 x (1 – 1%)
=₱7,500 x .99
=₱7,425
Third Invoice = Feb 2 – Feb 5 = 3 days
= 4/10 payment term
Net Price = ₱1,010 x (1 – 4%)
=₱1,010 x .96
=969.6
=₱4,950 + ₱7,425 + ₱969.6
=₱13,344.6 is the amount
that should be remitted on
Feb 5
___________________________________________
8) July 15 – July 23 = 8 days
= 2/10 payment term
=₱1,500 - ₱1,000 (.98)
=₱500(.98)
=₱490 is the partial payment
that must be made on July 23
to reduce the outstanding
balance to ₱1,000
___________________________________________
9) In order to get a cash discount, the due
date of the payment for the invoice is 15
days after Oct. 15 which is Oct. 30
___________________________________________
10) April 10 – April 30 = 20 days
= n/30 payment term
Cash Discount = 0 because payment
on April 30 is beyond the last day of taking
the discount so the full amount of the
invoice must be paid
Chapter 11 – Selling
I. Solve the following problems.
1) Mark-up = Selling Price – Total Cost
=₱19,900 - ₱17,500
=₱2,400
___________________________________________
2) Selling Price = ₱45 x 5 kilos
=₱225
Cost = ₱38 x 5 kilos
=₱190
Mark-up = Selling Price – Total Cost
=₱225 - ₱190
=₱35
___________________________________________
3) Mark-up = cost x rate of mark-up
=₱850 x .25
=₱212.5
Selling Price = cost + mark-up
=₱850 + 212.5
=₱1,062.5
___________________________________________
4) Initial Mark-up = List price – cost
=₱1,650 - ₱1,200
=₱450
Maintained Mark-up = Selling Price - cost
=₱1,500 - ₱1,200
=₱300
___________________________________________
5) Rate = (Selling Price - Cost)/cost x 100%
= (₱27,900 - ₱23,200)/ ₱23,200 x 100%
=₱4,700/₱23,200 x 100%
=20.26%
___________________________________________
6) a. Mark-up = Selling Price – Total Cost
=₱1.85M - ₱1.50M
=₱350,000
b. Rate = (Selling Price-Cost)/cost x 100%
=(₱1.85M - ₱1.50M)/ ₱1.50M x
100%
=23.33%
c. % mark-up on selling price =
mark-up/selling price x 100%
=₱.35M/₱1.85M x 100%
=18.92 %
___________________________________________
7) Selling Price = cost + mark-up
=₱750 + ₱50
=₱800
% mark-up on selling price =
mark-up/selling price x 100%
=₱50/₱800 x 100%
=6.25%
 8) Selling Price = cost + mark-up 2) % Mark-up on cost = 33%/(100% - 33%) x
₱1,600 = x + .40x 100%
₱1,600 = 1x + .40x =49.25%
₱1,600 = 1.40x ___________________________________________
x = ₱1,600/1.40 3) % Mark-up on cost = 50%/(100% - 50%) x
x = ₱1,142.86 100%
___________________________________________ =100%
9) Selling Price = cost + mark-up ___________________________________________
Cost = Selling Price – mark-up 4) % Mark-up on cost = 18.5%/(100% - 18.5%)
=₱35 - ₱15 x 100%
=₱20 =22.70%
___________________________________________ ___________________________________________
10) a. Retail selling price = 5) % Mark-up on cost = 25 3/4 %/(100% - 25 3/4
x = ₱9,000 + 0.3x %) x 100%
x - 0.3x = ₱9,000 =34.68%
0.7x = ₱9,000 ___________________________________________
x = ₱9,000/0.7 Chapter 12 – simple interest and simple
Retail selling price = ₱12,857.14 Discount
___________________________________________ I. Solve the following problems and show your
II. Compute the corresponding mark-up on selling complete solution:
price of the given mark-up on cost. 1) I= Prt
Formula : % Mark-up on selling price = % mark- = (₱12,000)(31/2%)(9/12)
up on cost / (100% - Mark-up on cost) x 100% = ₱315
1) % Mark-up on selling price = 15%/(100% - ___________________________________________
15%) x 100% 2) R=I/Pt
=17.65% =₱853.12/₱7,500 x 1.75 years
___________________________________________ =₱853.12/₱13,125
2) % Mark-up on selling price = 35%/(100% - =6.5%
35%) x 100% ___________________________________________
=53.85% 3) t=I/Pr
___________________________________________ =₱33,712.50/₱30,000 x 81/4%
3) %Mark-up on selling price = 33 1/2 %/(100% - =₱33,712.50/2,475
33 1/2 %) x 100% =4,903.2 days
=50.38% ___________________________________________
___________________________________________ 4) I= Prt
4) % Mark-up on selling price = 38%/(100% - =(₱1,200,000-₱500,000)(12%)(2)
38%) x 100% =(₱700,000)(12%)(2)
=61.29% =₱168,000
___________________________________________ ___________________________________________
5) % Mark-up on selling price = 67%/(100% - 5)
67%) x 100% ___________________________________________
=203.03% 6) Io = Pr d/360
___________________________________________ ₱230 =(₱9,000)(r)(116/360
III. Compute the corresponding mark-up on cost ₱230=₱2,900r
of the given mark-up on selling price. r=230/2,900
Formula : % Markup on cost = % Markup on r=7.93%
selling price / (100% - Markup on selling price) x ___________________________________________
100% 7) Ie = Pr d/365
1) % Mark-up on cost = 12%/(100% - 12%) x =₱25,000(8 1/4%)(60/365)
100% =₱25,000(8.25)(60/365)
=13.64% =₱339.04
 8) R=I/Pt 4) a. 8 ½% simple interest
=₱2,000/₱12,000(2.5) F = P(1 + rt)
=₱2,000/₱30,000 =₱6,000(1 + (81/2%)(9/12))
=6.67% = ₱6,382.5
___________________________________________ b. 8 ½% simple discount
9) t=I/Pr F = P(1 - rt)
=₱562.50/(₱36,000)(61/4%) =₱6,000(1 – (81/2%)(9/12))
=0.25 years or 3 months =₱5,617.5
___________________________________________ ___________________________________________
10) approximate time 5) interested value of ₱1
year months Day [1 + d(2.25)]=[1 - (9%)(2.25)]-1
2011 3 15 1 + 2.25d = .80-1
2011 1 12 2.25d = 0.25
0 1 33 d = 0.25/2.25
1 month and 33days or 1 x 30 + 33 = 63 days d = 11.11%
Io = Pr d/360 ___________________________________________
=₱6,000(51/2%)(63/360) 6) D = Fdt
=₱57.75 =₱24,000(71/2%)(2.5)
___________________________________________ =₱4,500
II. Solve the following problems by showing your P=F–D
complete solution. = ₱24,000 = ₱4,500
1) a. F = P(1 + rt) =₱19,500
P = F/(1 + rt) r = F/(1 + Pt)
=₱5,000/[1 + (81/2%)(8/12)] =₱24,000/(1 + (₱19,500 x 2.5)
=₱5,000/1+0.06 =₱24,000/(1 + 48,750)
=₱5,000/1.06 =₱24,000/48,751
=₱4,716.98 =49.23%
b. D = Fdt ___________________________________________
= (₱5,000)(81/2%)(8/12) 7) D = Fdt
=₱283.33 =(₱8,000)(41/2%)(120/365)
P=F–D =₱118.36
=₱5,000 - ₱283.33 P=F–D
=₱4,716.67 =₱8,000 - ₱118.36
___________________________________________ =₱7,881.64
2) discounted value of ₱1 ___________________________________________
[1 – d(190/365)]=[1 + (9%)(190/365)]-1 8) r = F/(1 + Pt)
1 – 0.52d = 1.05-1 =₱15,000/(1 + (₱12,000)(2.5))
0.52d = 0.04761 =₱15,000/30,001
d = 9.16% =50%
___________________________________________ ___________________________________________
3) D = Fdt 9) D = F – P
=₱12,000(71/2%)(2.5) =₱4,320 - ₱4,260
=₱2,250 =₱60
P=F–D d =D/Ft
= ₱12,000 = ₱2,250 =₱60/₱4,320 x 9/12
=₱9,750 = 1.85%
r = F/(1 + Pt) ___________________________________________
=₱12,000/(1 + (₱9750 x 2.5) 10) D = Fdt
=₱12,000/(1 + 24,375) =₱20,000 x .07 x 5/12
=₱12,000/24,376 =₱583.33
=49.23%