LEARNING OUTCOMES Hery buys @ chair for $250 ard ‘wants te sellit to make a 75% profit. is orof tis 15% of $250 = 0.15 x 250 = $37.50, sone must sell it for $250 « $37.50 = $287.50 Profit and loss The cost arice plus the oroftt gives the seling price ‘The cost orice mius the loss gives the selling price. Profit arc loss are expressed as percentages of the cost price. If buy 2 car for $12 006 anc sollit iter for $10.000, my loss is $2000. My percentage less is 2000 age = 9-668... = 16.7% 80 ° decimal place). Discount Shops sometimes offer a discount; ths is 2 percentage that they take off the orice, for exerrple ir a sale liver sees some shoes in the sele. They rormelly cost $70, out trete is a 20% ciscount The ciscount is 20% of $70, or 0.2 x $70 — $14, so the shoes cost $70 — $14 = $56. Fine a rite purchase deel froma newspaper or catalogue. Calalate the accitional percentage you oay by using hire ourcrase, VAT islancs charge VAT, sales tax or consumption tax cf around “5% on goods, This is adcec on to the price that you pay for gooes in tre sop, so an iter that right ctherwise cost $28 has 15% acided on, 15% of $28 = 0.15 x $28 = $4.20, so tre item actually costs $32.20, Hire purchase Sometimes you suy goods on hire ourcrase. This means paying sorre money to start with, called 2 deossit, followed by a numer of ‘monthly instalments. Tris usually costs rrore than ouying it outright. Peter wanted to ouy ¢ motorbike for $900. He paid @ deposit of $20€ followed oy 24 monthly instalrmerts cf $35. He paid $200 + (24 x $35) = $1640 So he paid an extre $140, or 283 = 0.15555... = 15.5% (to % decirral place).Reverse percentages Perce changes (orofit, loss, ciscount, tax) are always based cn ‘he original amount, Alison sees a handbag in a sale. She warts to know row much it cost originally. She cearct work it out by finding 25% of $60, because SECs the sale price, arc the 25% has alreacy been taker off the original She realises thet, if 25% has been taken off, sre has oaid 75%, 0r 0.75 So criginal orice X 0.75 Work ng back, $60 + 0.75 = $80 The oricinal price was $80, Use this tecvriove wherever you have te wors back te the original price, Ifa toy costs $3.68 inclucing VAT at 15%, you ere paying 100% + 15% VAT = 115% or 1.15 Oriciral price x 1.15 = orice including VAT So price inclucirg VAT + 1.15 = original price $3.68 + 1.15 Nelissa buys 29 article and aims to Teke 2 profit of 20% Unfertunately sre cerrot elit, soshe puls itm sale with 20% off. Exoleir to her why she makes 2 loss of 4%. UN mele 1 Jeffrey buys an article for $60 ard sells it for $87. ‘Wht is Fis oercentace proft? 2. Chis ouysar article for $60, He then adds on 20% for his profit, end then hes to edd un 15% VAT. What is the selling price? 3A freezer car be bought on hire ourchase for a coposit of $70 ad & monthly oeyments of $79. pe, a How much wilt cost? 1st $70 deposit hs bb Thisis 15% more than tre criinal cash price om roweare® ‘What is the original cash price?