Trading, profit, loss, discount and shopping – primary mathematics
Trading
A trader is a person who buys commodities and sells them at a profit.
The profit is the difference between the selling and cost prices
i.e. profit = selling price – cost price
When the selling price is lower than the cost price a trader makes a loss.
Loss = cost price – selling price ( where the cost price is higher than the selling price)
Discount
When a buyer buys many commodities from a trader, a trader may make some reduction on the prices. The reduction in price or cost of a commodity is called a discount.
Discount = cost of commodity – money agreed on to be paid by the buyer
Total cost of items = sum of the cost of all the purchased items.
Balance = Money paid by the trader – Total cost commodities (this money is returned to the buyer)
Unit cost is the cost of one item when the items are bought in a bundle or group.
Or
Cost of items = unit cost x number of items
Example 1
Saudah bought a dress at sh 6,000 and sold it at sh 7,200. What was her percentage profit?
Example 2
A businessman sold a generator at Shs. 200,000 making a loss of 1,500.
What was the cost price of the generator?
Cost = sale price + loss
= 200,000 + 10,500
= 210, 500
Example 3
A customer bought a fountain pen at Sh 1,500. The original price of the pen was Sh 2,000.
- Work out the percentage discount.
(b) If the customer was allowed the same percentage of discount on an article priced at Sh 5,000, how much did he pay for it?
Example 4
Six plates cost sh 3,000. What is the cost of four plates?
| 6 plate cost 3000
1 plate cost 4 plate cost 500 x 4 = shs 2000 |
For additional exercise and worked solution; download the PDF below
