Profit and Loss Profit When you sell

Profit and Loss Profit : When you sell something for MORE than you bought it. Loss : When you sell something for LESS than you bought it.

Profit and Loss Example 1 St. Merrin FC buy a player for £ 75, 000. 2 years later they sell the same player for £ 63, 500. How much of a loss did St. Merrin make on the player? Loss = 75, 000 – 63, 500 = 11, 500 They made a loss of £ 11, 500

Profit and Loss Example 2 A shopkeeper buys 10 copies of a book at £ 7. 50 each. He sells 6 books at a price of £ 13. 00 each and the remaining 4 books for £ 5. 50 each. a) Calculate the profit made on the first 6 books b) Calculate the loss made on the last 4 books c) Did the shopkeeper make an overall profit or loss? Explain a) Profit on one book = £ 13. 00 - £ 7. 50 = £ 5. 50 So profit on 6 books = £ 5. 50 x 6 = £ 33 b) Loss on one book = £ 7. 50 - £ 5. 50 = £ 2. 00 So loss on 4 books = £ 2. 00 x 4 = £ 8. 00 c) Overall Profit = £ 33. 00 - £ 8. 00 = £ 25. 00

Profit and Loss Example 3 A shopkeeper buys crisps for 20 p each. He want to make a 40% profit on every pack he sells. How much must he sell them for. 10% 20 ÷ 10 = 2 p 40% 2 p x 4 = 8 p He must sell each packet for 20 p + 8 p = 28 p

Profit and Loss Example 2 An electronics shop buy TV’s for £ 300 each and sell them to customers for £ 450. What percentage profit do they make on each TV. Profit = 450 – 300 = £ 150 = 50%

Profit and Loss Example 3 A travel shop buy package holidays to Spain for £ 800. Due to lack of demand they are forced to cut there losses and sell them for £ 500. What percentage loss do they make on each package. Loss = 800 – 500 = £ 300 = 37. 5%

VAT means : Value added Tax Why do we pay it ? To pay for NHS, bin collection, School education etc…… What is the current percentage rate of VAT 17. 5%

VAT – 17. 5% Example 1 How much will I pay for the computer including VAT below ? 10% 1000 ÷ 10 = £ 100 5% half of 10% = £ 50 2. 5% half of 5% 17. 5% = £ 25 £ 175 Total cost is £ 1000 + £ 175 = £ 1175 £ 1000 + VAT

VAT – 17. 5% Example 2 Price of the Plasma TV is shown below is excluding VAT. What is the total price I have to pay. 10% 1300 ÷ 10 5% half of 10% 2. 5% half of 5% 17. 5% = £ 130 = £ 65 = £ 32. 50 £ 227. 50 £ 1300 (excluding VAT) Total cost is £ 1300 + £ 227. 50 = £ 1527. 50

Gas / Electricity Bills A Gas or electricity bill shows you: How many units have been used The VAT at 5% The total charge The charge for a unit 3567 3277 290 13. 5 39 15 3 13 42 28

Foreign Currency Converting to another currency Exchange rate : This is the number of euros you get for a £ 1 Example : Simply multiply by exchange rate How many euros will I get for £ 100. £ 1 100 Exchange rate £ 1= Euro € 1. 44 Dollar $ 1. 51 Yen 190 € 1. 44 100 x 1. 44 = 144 €

Foreign Currency Converting to another currency Example : How many Dollars and Yens will I get for £ 50. £ 1 50 $ 1. 51 50 x 1. 51 = $75. 50 £ 1 50 Yen 190 50 x 190 = 9500 Yen Exchange rate £ 1 = Euro € 1. 44 Dollar $ 1. 51 Yen 190

Foreign Currency Converting back to £’s euros to £’s : Simply divide by exchange rate. Example : . Simply divide by exchange rate How many £’s will I get for 20 € € 1. 44 20 £ 1 20 ÷ 1. 44 = Exchange rate £ 1= Euro € 1. 44 Dollar $ 1. 51 Yen 190 £ 13. 89

Foreign Currency Converting back to £’s Example : A business man returns from American with $450. He converts them back to £’s. How much will he get back ? $ 1. 50 450 £ 1 450 ÷ 1. 50 = £ 300 Exchange rate £ 1 = Euro € 1. 44 Dollar $ 1. 50 Yen 190

Higher Purchase (HP) WHAT IS HIGHER PURCHASE ? When you deal with a shop to pay for goods in instalments It will end up costing you more

Higher Purchase (HP) E L R SA FO 50 £ 7 or Example: 65 of £ ents aym ly p onth 2 m nd 1 it a epos d £ 50 I can buy this computer for £ 750 cash I can also buy this computer using higher purchase agreement. How much does it cost to buy this computer using the higher purchase agreement? Instalments = 12 x £ 65 = £ 780 Total Cost = Instalments + Deposit = £ 780 + £ 50 = £ 830

Higher Purchase (HP) Example 2: Del Boy’s Autos I bought a car from Del Boy using Higher Purchase. I left a deposit of 10% and agreed to make 18 monthly payments of £ 105 CASH PRICE £ 1800 What is the total HP price? Instalments = 18 x £ 105 = £ 1890 Deposit = 10% of £ 1800 = £ 180 Total Cost = Instalments + Deposit = £ 1890 + £ 180 = £ 2070 How much extra have I paid for the car? £ 2070 - £ 1800 = £ 270

Simple Interest Just working out percentages I have £ 400 in the Bank. At the end of each year I receive 7% of £ 400 in interest. How much interest do I receive after 1 years? How much do I now have?

Simple Interest Just working out percentages I have £ 1200 in the Bank. I receive 10% p. a. in interest. How much interest do I receive if I take my money out after 3 months.

Simple Interest Just working out percentages Stuart invested £ 4000 in the building Society with an interest rate of 5% p. a. How much does he have after 6 years?

Items House & Contents & Valuables Charge Insurance Building per £ 1000 £ 0. 73 Contents per £ 1000 £ 3. 57 Valuables per £ 1000 £ 4. 75 Example 1 : How much is the House Insurance for a house valued at £ 40 000. Value £ 1 000 £ 40 000 Premium (cost of Insurance) £ 0. 73 (£ 40000 x £ 0. 73) 1000 = £ 29. 20

Items House & Contents & Valuables Insurance Charge Building per £ 1000 £ 2. 56 Contents per £ 1000 £ 3. 57 Valuables per £ 1000 £ 4. 75 Example 2 : Jack wants to insure his house which is worth £ 80 000. What is Jack’s premium? Value £ 1 000 £ 80 000 Premium (cost of Insurance) £ 0. 73 (£ 80000 x £ 0. 73) 1000 = £ 58. 40