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JSS2 Mathematics

Commercial Arithmetic: Profit and Loss

Transcript

00:00 Hello, my name is Oyase. Sunday. I will be taking you mathematics JSS2 class. We're looking at an interesting topic for today.

00:20 The topic is transaction in the home and offices. Transaction in the home and offices, we're going to be looking at it in two parts.

00:29 So, we're going to be having a Series 1 and a Series 2 class. So, what the class would be specially designed for Series 1.

00:37 So, on that, the Series 1, we have the specific objective that the class is expected to achieve.

00:43 Now, what are our objectives for the Series 1?

00:47 The objective is able to solve simple commercial arithmetic relating to profits, interest, discount and commission.

00:59 How do you walk around commercial arithmetic relating to profits, interest, discount and commission?

01:09 That's the focus of the class. So, we begin each of them and we're taking look at them one after the other.

01:17 Now, starting off with profits. A profit for profit or loss. So, you either make profits and you have loss.

01:30 For profit and loss, we have the following concepts as to be looked at. Look at the cost price.

01:40 Look at selling price. Now, the cost price, the selling price. We're considering profit and loss.

01:52 And when profit and loss, we take a look at three elements. We have the first box, the second box and the third box.

02:03 So, we have the markets, the M, the trader, C and the final consumer, C.

02:10 But how do these three relates? How do they relate when they come to commercial arithmetic?

02:15 The cost price is the price that the trader pays when she buys an item, including every other amount that is used up in the process.

02:26 So, the trader goes to the market. The private amount he pays to get the product is called the cost price.

02:35 Now, the selling price, the price to be the trader sells to the item to the consumer. The trader sells the item to the consumer.

02:45 That becomes the selling price. So, you can see. So, the trader becomes the intermediary.

02:52 So, the trader has two options. The trader could have that profit or the trader can make a loss.

02:58 So, we are centred around the trader. So, we have the difference between the cost and the selling price is the profit.

03:06 I said, the relationship between the cost price and the selling price gives you your profit or your loss.

03:13 If the selling price is greater than the cost price, you have profit.

03:18 But if the cost price is greater than the selling price, you have loss.

03:22 If the selling price is more than the cost price, it is profit. And if the selling price is less than the cost price, it's worth a loss.

03:30 So, if the trader goes to the market, now buy it and the selling price is more than is going to be making what profits.

03:42 But if the selling price is less than make what a loss.

03:46 The challenge we are going to be having here is, how do we now calculate the profit or loss in percentage?

03:55 Okay, we can determine the profit, but how do we calculate it in percentage?

03:59 There will be a need for us to put the profit or the loss in percentage.

04:03 So, the profit or profit or profit would give us, we have selling price x minus cost price.

04:14 So, we believe that the selling price is greater than the cost price, both putting it in percentage.

04:21 Putting in percentage will have the profits, the so-called profits or the loss that we have over the cost price.

04:31 As they see, they multiply by 100 in percentage.

04:37 Now, did that simply give you an idea of what to do?

04:41 This is when the profit or loss percentage is unknown.

04:44 As the profit or loss percentage is unknown, you follow to this method.

04:49 But there might be some other questions where the profit or loss percentage will give you the projected percentage of profit or loss.

04:56 Now, when they do that, we would have to reverse this formula the other way around.

05:01 So, let's pick a question from this.

05:04 For example, one says, a trader buys 50, 1 litre carton of drinking yogurt from a factory.

05:13 The yogurt would take very well.

05:15 Now, it pays 550 per 1, for 1 litre of the carton.

05:20 It pays 550.

05:21 On the way to the store room, 8 cartons are burnt open.

05:27 And the yogurt spills out.

05:29 It's already out.

05:31 Now, the trader sells the remaining carton at 600 each.

05:36 Calculate its percentage profit or loss.

05:41 How much did he buy?

05:43 55.

05:44 That is 5.15.

05:47 How much did he sell?

05:49 600.

05:50 Now, the final is, what is the cost?

05:53 First, determine the cost.

05:57 Now, we have...

05:59 Example 1.

06:00 What is the cost?

06:01 The cost price.

06:03 The cost price is 55.

06:08 550.000.

06:09 550.000.

06:10 Multiplied by how many did he buy?

06:14 But 50.

06:15 Techniques.

06:16 So, the first thing you write out all the parameters that are given.

06:20 So, it's easy.

06:21 Parameters are given already now.

06:23 Then it's easy to compute.

06:25 So, we have 550 times 50 does 27.500 is the cost price.

06:35 Now, when to calculate the selling price?

06:39 How much did he sell?

06:41 Selling price.

06:43 Now, the selling price is, but before we get the selling price, there's a need.

06:48 Six, eight of them.

06:50 Look at it.

06:51 They were eight.

06:52 They were both open and to a speed.

06:55 So, we're going to subtract the eight out of the 50.

06:58 So, we're going to be able to determine how many did we...

07:01 Did he finally sell?

07:03 So, to get the selling is selling at 50 minus eight.

07:10 So, it's going to be selling our one.

07:13 42 cartons.

07:15 It's selling for two cartons.

07:17 So, what would not be the selling price at 42 cartons?

07:21 Because selling price gives us 42 times 600.

07:28 And for two times 600 does give us 25,200.

07:37 Now, what we need to do in the first place is compare.

07:40 This is the cost price.

07:43 And this is the selling price.

07:46 Compare the two.

07:48 Remember, the cost price, the selling price.

07:51 Compare the two.

07:52 Now, is it going to be making a profit or make a loss?

07:55 Look at it.

07:56 You see that this cost price is greater than the selling price.

07:59 And it would be at a loss himself.

08:02 How the...

08:03 You got speeded.

08:05 That's why in selling, the trader has to be very careful.

08:09 So, looking at it, we'll move up.

08:11 And...

08:13 We're happy with us.

08:14 The profit or loss.

08:16 So, the...

08:17 We said it's going to make a loss because it costs.

08:20 So, the loss we give us, what do we have?

08:22 We have what?

08:24 25 because 25,200 minus 27,500.

08:31 It's supposed to be a negative, but we know it's a loss.

08:35 So, we have...

08:39 Niagara sign of 2,300 is his loss.

08:43 This made it a loss.

08:45 So, now, express it in percentage.

08:48 That's the next step.

08:49 So, expressing this in percentage simply means you're going to be saying

08:54 the loss percentage, remember, is the loss.

08:58 What do you have at the loss?

08:59 That's 2,300 over.

09:01 What is the cost price?

09:03 That's 27,500.

09:05 Multiply by 100%.

09:08 So, the loss is expected to make.

09:11 Take this, take this out.

09:12 Take this, take this out.

09:13 Multiply them, you're going to be having 8.36%.

09:20 It's making a loss of 8.36%.

09:24 That's not much, but it could really affect the business to have

09:28 make a loss of 8.36%, with 2%, 3%, 4%, as 8% is really much.

09:35 So, that is how to determine your profit.

09:38 If it's to make a profit, oh, good and fine.

09:41 Now, the question is, now we have the selling price.

09:44 We have been to the selling price.

09:46 We have been to the cost price and we could just find the percentage.

09:49 What if you had a projected profit?

09:52 Oh, a projected profit percentage.

09:54 Okay, in the next transaction is projecting a 20% profit.

09:59 What would not be the selling price of that product or the cost price?

10:03 So, for that, we're having a different formula,

10:07 it's still a manipulation of the original formula.

10:11 If we look for the cost price, being given the profit percentage,

10:14 is the selling price multiplied by 100 over 100 plus the profit percentage,

10:20 meaning that we're expressed that error would be expressive 100.

10:25 Both for the loss, we believe that it's making a loss.

10:28 So, there's some subtraction.

10:29 That's 100 minus the loss percentage.

10:32 Then, if it's the selling price, the reverse,

10:35 the reverse will only be that for the formula,

10:39 it's just going to be that the cost price that you're looking for,

10:43 that Cp will give us the selling price that SP is SP multiplied by 100 over 100 plus profit percentage.

10:59 That's P.

11:00 So, either the formula you apply depends on what the question is actually to look for.

11:06 Pick up the first question, question number two.

11:09 Esella buys 20 pair of women's sneakers from manufacturer, 20 pair, 10-minute, 20.

11:17 One of the pair gets damaged as they truck,

11:21 which the shoes is unlocked.

11:24 Now, you mean those trucks when taking the shoes or taking the sneakers from where they manufactured to the Trader's location,

11:33 one of them got damaged.

11:34 Now, the Trader decided to sell this pair at a lower price of $7,000.

11:41 The loss is projected to be 20%.

11:44 Now, look at it.

11:46 We don't know the cost price.

11:48 How much it buys the 20 pairs?

11:51 But one of the pair that got damaged was sold at a lower cost of what, $7,000.

11:59 And we said it's making the loss percentage of 20%.

12:03 Now, what would be the calculated cost price for this pair of sneakers?

12:08 The question is pick out your variables.

12:11 It's very important that before you start solving any mathematical question pick out the variables that are given.

12:16 So, we have the cost price represents 100%.

12:21 We don't know, say, example 2.

12:23 Cost price is at 100%.

12:30 So, we have a loss was made on the cost price.

12:33 And what was the loss?

12:34 So, we are trying to project that the selling price was made in loss.

12:39 So, the selling price would be at the loss percentage.

12:43 So, we are having the selling price to give us 100%.

12:48 If it was a profit that they made, I would have added it, but they made a loss.

12:52 So, they made a loss.

12:53 So, 200% minus what was lost?

12:57 20%.

12:58 So, we are projecting that it was an 80% that the selling price should have been since it made a loss.

13:08 If it was a profit, it would have been a 120% if it's a profit, but because it's a loss, we have 80%.

13:14 Now, the cost price, the cost price would give us what the selling.

13:22 The selling is a sold one that we don't got at 7000, multiplied by 100 over 100 minus what was the percentage of the loss?

13:36 It's already given at what 20%.

13:41 So, I will have it as a projected cost by that Cp will give me 7000 multiplied by 100 over 100 minus 20.

13:55 That would give me 80. So, when I do my calculation, I would be having that my price will be 8000,

14:11 7500, is the cost price for each of the items at a loss of 20%.

14:22 It gives you an idea and it's okay, the loss percentage is given.

14:25 If it was in a profit, you remember it would be an addition.

14:30 If you looking for the selling price, it would be a reversal.

14:34 So, take note of how the manipulation has been done and what is given.

14:38 The first, like I said, pick out the parameters and it is easier to go to the process.

14:43 So, I have interest. The next, the next on our list, collection of lists, is interest.

14:47 Interest is an extra money you pay on the loan or money you earn on an investment.

14:53 The money you pay on the loan or you earn on an investment is called interest.

15:00 Now, a loan is an amount of money you borrow. When you borrow money, they call it a loan.

15:06 Boy, that you most normally pay back with interest. You pay back a loan.

15:12 You take a loan. You take a loan from your bank. You take a loan from individuals.

15:17 You take a loan from corporate organizations. You take a loan.

15:20 This is money you take, maybe for an investment purpose.

15:23 So, you take a loan or I'm taking up this loan to be able to finance this investment.

15:27 Oh, I want to build this company and I need a money.

15:31 So, you go to the bank or go to the corporate bodies that give you huge amount of money.

15:35 You start off a company. That is called what we call a loan into an investment.

15:41 An investment is an amount of money you give to an business or bank.

15:48 In the hope of getting more money back, you get that.

15:52 So, when there is a loan, there is an investment, there is going to be an interest.

15:56 So, looking at the relationship between the three.

15:58 Now, looking at it, there are three boxes again on that interest.

16:04 Remember, on that, we have three boxes again. These are three boxes.

16:08 And what connects them? There are three boxes.

16:12 And they have the bank or whatever it is that I want to approach for the loan.

16:19 I have the person, which is the individual who wants to take the loan.

16:23 I have what I want to do with the loan, where the company who takes the loan.

16:28 Now, the bank gives a loan. What the bank gives a loan?

16:33 The loan is given. That's the loan.

16:36 And the loan is used for investment. That's investment proposed.

16:41 Now, when you use for investment proposed, at the end of the day,

16:46 is expected to pay something back for the loan.

16:49 And that is called your interest.

16:53 So, you're expected to get pay back.

16:56 So, the relationship between the loan investment is called the interest.

17:00 So, we usually call it the interest, which is called the simple interest.

17:04 And the simple interest is the principal, that the money you borrow or the money you took,

17:11 times the interest rates, at which the bank is giving you the money.

17:15 Multiply by the time, the amount of time, the time duration of paying back.

17:21 I would just say my simple interest is principal, times, my interest rate, time, the number of years I want to use it.

17:31 But the actual amount that I'm to pay back would simply be my principal,

17:36 close the interest that I'm paying, the interest I want to pay, close the interest and paying.

17:42 So, when I bring up the entire equation, I will have, what's my simple interest?

17:48 That would give me PII, multiplied by I, multiplied by N.

17:56 So, at the end of the day, my amount that I'm expected to pay, at the end of the duration,

18:04 whether it's five years, three years or four years, the amount I'm expected to pay would be P,

18:09 open bracket, one, close, I, N, N. So, work around it.

18:16 Now, let's pick a question.

18:18 A man invested 60,000 in a fixed deposit account with an interest rate of 8% per annum.

18:27 Calculate the interest in after five years, as well as the balance of the account at the end of five years.

18:36 What happens is, like I said, you could put the money into an investment.

18:40 So, this man's theory is okay.

18:42 I cannot use this money.

18:44 Now, for the next five years, I shoot.

18:47 And also, the money, money is expected to yield a certain percentage of interest every year,

18:55 due to the value of inflation.

18:58 Meaning that 10,000, in two, three years from now, would depreciate in value.

19:04 So, that is the reason why interest comes in.

19:06 So, this man invested 60,000 in a fixed deposit account.

19:11 And every year is given 8% per annum interest and is projecting five years.

19:18 So, after five years, what will be the amount that is going to have?

19:23 Simple.

19:25 Follow your computation to the process.

19:27 Just know how to fix them in.

19:29 So, I have solution.

19:32 That's a solution.

19:35 And I have, how much was invested, principal invested, 60,000?

19:44 At what interest rate?

19:46 Interest rate does I at 8% interest rate?

19:50 And I have many numbers of years at 5%.

19:53 So, what are you looking for?

19:55 You're looking for the interest of that working rate.

19:58 So, my interest, that's my simple interest, will give me what's my principal?

20:03 That's 60,000.

20:06 Multiply by what the interest rate does 8% to over 100.

20:12 Multiply by what the time that's five years.

20:15 So, take it up.

20:19 Interest will give me, that will give me 60,000 times five.

20:25 That gives me what?

20:27 300,000.

20:30 Multiply by 8% over 100.

20:35 So, this goes for this and this.

20:40 The will have our interest would give me 24,000.

20:47 Now, after five years, the interest accumulated will be what?

20:53 24,000.

20:54 If you want to determine how much five years, you just divide it 24,000 by five.

20:59 So, how much, into about after five years, the interest accumulated will be what?

21:04 24,000.

21:05 It will now be the amount after five years.

21:09 So, the amount will now be that after five years, I'm going to be having my amount.

21:15 It will now be what my principal, initial amount invested.

21:19 60,000.

21:21 Plus, what's my interest for the community period?

21:24 24,000.

21:26 Where you add them up together, I will have it as what?

21:29 84,000.

21:30 So, after five years, 60,000 result into 84,000.

21:37 That's a good investment.

21:39 But if 60,000 error is kept somewhere under the bed or somewhere else, without being used

21:45 for investment purposes, it will only remain at 60,000 error would never change.

21:50 But when my investment proposed, it is also how we have accumulated what?

21:57 This is the 84,000.

21:58 Now, moving to the third part.

21:59 We just have the fourth part we're looking at.

22:01 The third part is this discount.

22:03 In a home, you can give discount.

22:05 It's the reduction in the market price of an item.

22:09 So that the customer pays less than the normal price for the item.

22:13 Trade does often give the discount when customer pays cash instead of buying on credit.

22:19 And they may also give you a discount when customer buys in large quantities.

22:23 So, discounts are given to customers who buy in large quantity.

22:27 Oh, you purchase in large quantity.

22:29 The buyer or the trader is happy, gives you a discount.

22:33 Now, remember, gives you a discount.

22:36 So, all you pay promptly, you don't want to buy on credit if you are paying promptly.

22:40 The trader or the buyer can decide to also give you a discount.

22:44 So, discount can go either in the time where you buy in large quantity or you pay promptly.

22:50 So, at that point, give up your discount.

22:53 So, discount percentage is unknown.

22:55 That is a process where a discount percentage is unknown.

22:59 So, if the discount percentage is unknown, we expect that the discount discount percentage is unknown.

23:08 So, the discount, which is D, will be your normal price, that the normal price minus your discounted price.

23:15 So, we get our discount.

23:17 But, if you are not expressing it in percentage, if you are expressing it in percentage,

23:23 that's the expressing your discount in percentage.

23:25 It will give us the discount that the one you've gotten above over the normal price,

23:32 that the normal price of the product, normal price.

23:37 Then, express in 100%.

23:41 This one is, we are trying to get the percentage because the percentage is unknown.

23:46 So, pick the question.

23:47 It's from a kid who has too much stock of a certain brand of a big faster cellular.

23:54 The manager decides to sell the 350 gram box that are normally priced at 180 for 1,000,

24:05 6, 5, 6.

24:08 A normal price was to be to be 1,800.

24:11 But, the manager decides to sell because they have so much stock.

24:16 So, to attract customer to buy, we bring down the price.

24:20 Bringing down the price is discount.

24:22 Now, at 1,656, calculate the percentage discount per box.

24:29 So, because we now have more people who wants to buy, or want to buy because the price has been slashed.

24:34 First, what do you do?

24:37 First, what is the normal price?

24:40 So, to be able to get your discount, that's the example 4, to get your discount, what is discount?

24:49 First, what is the normal price?

24:50 Normal price is 1,800.

24:53 How much was this sold for?

24:55 1,656.

24:58 So, your discount is 144 per box.

25:04 So, anyone who buys per box is going to be given 144.

25:08 Now, what would not be the percentage of the discount?

25:11 The percentage of the discount would give us the discount, which is 144 over what is the normal price of the product?

25:18 The normal price is 1,800 times 100%.

25:24 Now, that gives me 8% discount.

25:29 8% discount.

25:30 You will be able, you know, if you watch your TV very well, you will be able to say, "Oh, I'm giving 8% discount to buy this commodity."

25:38 So, 8% discount is taken of the percentage from the amount.

25:43 But sometimes, also, the percentage might be known, like I just said.

25:48 Oh, we are selling this phone at 25% discount.

25:53 So, you don't ask yourself, "How do I get up the discount from the price?"

25:59 So, the normal price will be equal to your discounted price, multiplied by 100.

26:04 All of our 100 minus the discount.

26:07 They are expected that the discount price or your popularity for the discount price.

26:12 So, if you are a popularity for the normal price or the discount price, the two formulas are this.

26:18 100 divided by 100 minus discount or 100 minus discount divided by 100.

26:25 Now, picking the question, question number 5.

26:27 It said, "It's for market offers 5% discount if a customer buys more than 20 sub-drink in 33 liters of current."

26:37 33 liters of current that if you buy more than 20, you will be given 5% discount.

26:43 A customer or a consumer buys how many? 24.

26:49 And pays 3420.

26:53 Calculate the normal price, parking.

26:57 Now, it is paying.

27:00 Going fully well, just look at it carefully.

27:03 Looking at it, what do we have?

27:05 The discounted price.

27:06 We expect that the discounted price, example 5, the discounted price, the discounted price.

27:12 It's always at 100 percent.

27:15 So, we have been given 5% discount out.

27:19 So, we are expected to have a 95% discounted price.

27:23 So, when we have that, what is e?

27:26 We now have a normal price.

27:28 Remember, a normal price, a normal price, a normal price.

27:34 What give us what we have?

27:38 3420.

27:42 Remember your 3420.

27:44 3420, that's the discounted price.

27:48 Multiply by 100 over 100 minus 5.

27:56 So, that gives me a normal price.

28:00 That gives me 3420.

28:04 Multiply by 100 over 95.

28:09 So, my normal price of it gives me a much 3600 in the normal price.

28:17 So, at a 5% discount given, you are having that, that's the discount given.

28:22 That's why the price.

28:23 I'll decide to go to 4000, 3000, 420.

28:27 Because of your 5% discount.

28:30 Now, the last aspect is the commission.

28:33 That's the money that an agent pays to perform a service.

28:38 Commission.

28:39 The money an agent pays to perform a service.

28:42 When you perform a service, you have been paid a commission.

28:45 Lawyers, salesmen, insurance, they have been paid for a commission.

28:50 Now, the question is, how do you calculate your commission received?

28:53 When you have your commission, how do you calculate your commission received?

28:56 Your commission received is commission to percentage multiplied by the values over the services.

29:02 And multiplied by 100.

29:04 That's commission received.

29:05 Or commission percentage is commission received over the values of sales multiplied by the services.

29:11 Now, these are how you get it.

29:14 Then, let's pick a question.

29:16 A salesman receives a basic salary of 85,000 and a commission of 15%.

29:21 It gets the commission of 15%.

29:23 It's basically a salary of 5,000.

29:25 But whenever it works, it gets a 15% commission on all sales are both 25,000.

29:31 So, when it sells about 25,000, it gets you 15%.

29:35 If the salesman are sold, stock, what's 60,000?

29:40 What is a two-tape for the month?

29:43 What's a two-tape for the month?

29:45 First, what's the commission an?

29:47 That's it.

29:50 What's the commission an?

29:52 The commission an?

29:54 That is the commission that the salesman an?

29:57 The commission an?

30:02 So, commission an is what?

30:05 We have, remember, 60,000 minus 25,000.

30:13 And the balance gives us what?

30:15 35,000.

30:17 That's the commission is, he has handphone for himself, for making the sales that is above that amount.

30:24 Now, what will be the commission received?

30:27 Or the commission that it would get at the end of the day?

30:30 The commission received, we're expressing it, that gives us what?

30:36 Remember, it's 15%.

30:38 That's 15 over 100.

30:41 Times the commission in N, that's 35,000.

30:45 And that gives us what?

30:47 5,000, 250.

30:50 Now, 5,000, 250.

30:53 What will that be?

30:54 It's total pay.

30:55 The total pay for the month.

30:57 Total pay for the entire duration would be its salary.

31:01 It's 5,000.

31:03 The 5,000 plus the commission gets 5,000 to 50.

31:08 And the total amount gives me 90,000 to 150.

31:14 Wow.

31:15 That's a huge amount of money when he has made a sales for the amount.

31:19 So, with this, it's giving you a very good idea on what to expect.

31:24 Remove to the evaluation.

31:26 Evaluation questions are questions I enable you to give you to solve.

31:29 Questions relating to what we've discussed.

31:32 And the evaluation sessions, a debt collector received 20% commission

31:36 on how money he manages to get from all debtors.

31:40 It gets 20%, 12% off it.

31:42 Capital, the commission receives on collection of 2,000, 46,000.

31:48 And questions about two sales calculate the total amount of money paid back after 5 years

31:53 on a loan of 25,000 with an interest rate of 15%.

31:58 Wow.

31:59 That's a good question.

32:00 Thank you very much for watching.

32:03 My name is Ayase Sunday.

32:05 Till next time.