Prices Related to Buying and Selling
Prices related to an item
Prices related to an item are: (i) Selling price
(ii) Cost price
Selling price (SP) is the price at which a product is sold out.
Cost price (CP) is the buying price of an item.
Profit = Selling price – Cost price
Loss = Cost price – Selling price
If SP > CP , then it is profit.
If SP = CP , then it is neither profit nor loss.
If CP > SP , then it is loss.
Finding the profit or loss percentage
ProfitPercentage=ProfitCostPrice×100
LossPercentage=LossCostPrice×100
Percentages and Why Percentages
Percentages
Percentages are ratios expressed as a fraction of 100.
Percentages are represented by the symbol ‘%’.
Example: 20100=20%and 50100=50%.
Comparing percentages when denominator is not 100
When a ratio is not expressed in fraction of 100, then convert the fraction to an equivalent
fraction with denominator 100.
Example: Consider a fraction 35.Multiply the numerator and denominator by 20.
⇒3×205×20=60100=60%
Converting fractions/decimals to percentages
Converting Decimals to Percentages
Given decimal: 0.44
0.44=44100=44100×100%=44%
Converting Fractions to Percentages
Given fraction: 3535×100%=3×20%=60
Converting percentages to fractions/decimals
0.25=25100=14
0.225=2251000=940
Estimation using percentages
Estimation can be done using percentages.
Example: What percentage of the given circle is shaded?
Solution: The given triangle consists of 8 regions, out of which 6 regions are shaded.
So, the percentage of shaded regions will be 68×100=34×100=75%.
Interpreting percentage into usable data
Percentages can be interpreted into useful data.
Examples:
(i) 40% of Raghav’s clothes are not washed.
⇒ Raghav’s 40 clothes out of 100 clothes are not washed.
(ii) 30 % of students in class are infected by fever.
⇒ Out of 100 students in a class, 30 students are infected by fever.
Converting percentage to the form “how many”
Example: 200 chocolates were distributed among two children: Joe and Tom. Joe got
60% and Tom got 40% of the chocolates. How many chocolates will each get?
Solution: Total number of chocolates = 200
Joe got 60% of the chocolates = 60100×200=120Tom got 40% of the chocolates
= 40100×200=80 ∴ Joe and Tom will get 120 and 80 chocolates, respectively.
Converting Ratios to percentages
Ratios can be expressed as percentages to understand certain situations much better.
Example: 200 chocolates were distributed among two children: James and Jacob. James
got35 and Jacob got 25 of the chocolates. What is the percentage of chocolate that each
got?
Solution: Total number of chocolates = 200
James got 35 of the chocolates = 35×100=60% of the total chocolates.
Jacob got 25 of the chocolates = 25×100=40% of the total chocolates.
Comparing Quantities : Introduction
To compare two quantities, the units must be the same.
Examples:
(i) Joe’s height is 150 cm and Tom’s is 100 cm.
Ratio of Joe’s height to Tom’s height would be Joe’s height : Tom’s height.
= 150 : 100 = 3: 2
(ii) Ratio of 3 km to 30 m is 3 km : 30 m.
= 3000 m : 30 m
= 300 : 1
Ratio is a relation between two quantities showing the number of times one value
contains or is contained within the other.
Example: If there are four girls and seven boys in a class, then the ratio of number of girls
to number of boys is 4:7.
Equivalent Ratios
By multiplying numerator and denominator of a rational number by a non zero integer, we
obtain another rational number equivalent to the given rational number. These are
called equivalent fractions.
Example:13=13×22=26 and 13 are equivalent fractions.
Proportions
If two ratios are equal, then they are said to be in proportion.
Symbol “::” or “=” is used to equate the two ratios.
Example: (i) Ratios 2:3 and 6:9 are equal. They can be represented as 2:3 :: 6:9 or 2:3 =
6:9.
(ii) Ratios 1:2 and x:4 are in proportion.
⇒12=x4
⇒1×4=x×2
⇒2x=4
⇒x=2
Finding the Increase or Decrease in Percent
Finding the percentage increase or decrease
Example: Price of a book was changed from ₹20 to ₹25 in a week. Calculate the
percentage increased.
Solution: Change in price = ₹25 – ₹20 = ₹5
PercentageIncreased=ChangeinPriceOriginalPrice =520×100=25%
Simple and Compound Interest
Sum / principal
The money which has been borrowed is called sum or principal.
This money can be used by the borrower for a particular time period before returning to
the lender.
Example: Loan that you take from a bank is the principal.
Interest
Interest is the extra payment that a borrower should pay to the lender along with the
principal.
Amount
A borrower should return the principal amount (he/she has borrowed) and the interest to
the lender. This money is called amount.
⇒ Amount = Principal + Interest.
Simple Interest
Simple interest(SI) is the interest charged on a borrowed money where the principal
amount will be fixed for a particular time period.
SimpleInterest=P×R×N100P = Principal Amount, R = Interest rate
N = Number of years
Example: Calculate the simple interest for 3 years when the principal amount is 200 and
interest rate is 10% for 1 year.
Solution: Given: P = 200; R = 10%; T = 3 yrs
Simple Interest = 200×10××3100=60Amount = P + SI = Rs. (200 + 60) = Rs. 260
