IT

CHAPTER 11: PERCENTAGES

11.4: Practical Examples

Ø  EXPLANATION:

·         If you buy something and sell it, the difference between the 2 prices is profit or a loss.

·         When you buy something you may be offered a discount.

This is a reduction in a price. It is usually given as a percentage.

·         If a bank helps you to buy an item, you may have to pay back more than you borrow. This is the interest that bank charges.

·         If you buy something the price may include a tax. This is called a purchased tax. When you earn money you may have to pay tax on what you earn. This is called income tax.

Ø  EXAMPLE:

A man earns $45 000 in a year

He can earn $16 000 without paying any tax.

He pays 24% tax on anything above $16 000.

a)   Work out how much tax he pays.

b)   What percentage of his income does he pay in income tax?

a)    45 000 – 16 000 = 29 000

24% of 29 000 = 6960

He pays $6960

b)   (6960 : 45 000) x 100% = 15.5%

 EXERCISE

1.    A woman bought an old chair for $240. She sold it for $300.

Work out the percentage profit.

2.    A man bought a car for $15 900. He sold it for $9500.

Work out the percentage loss.

A bottle of grape juice costs $6.50.

If you buy 6 bottles you can get 10% discount.

Work out how much you save if you buy 6 bottles.