Use of percentage in business and commission
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The document discusses percentages, discounts, and commissions. It provides examples of calculating percentages, discounts on prices, and commissions earned by salespeople. Percentages are calculated by taking a number's percentage of the total. Discounts are calculated by taking a percentage off the original or stated price. Commission is a percentage of the total sale price paid to the salesperson. Examples show how to calculate discounted prices, original prices given a discount amount, commission amounts, and total sales values.
Use of percentage in business and commission
- 2. BY: ASSOCIATE PROFESSOR NADEEM UDDIN Percentage A percentage is a ratio or fraction whose denominator is 100. Example-20 What is 40% of Rs.150. Solution: 40 40% of 150 = 150 Rs.60 100 = Example-21 Find the sum of money of which Rs.60 is 40%. Solution: 40% of x = 60 40 x 60 100 100 x 60 Rs.150 40 = = = Example-22 What percentage of Rs.150 is Rs.60 Solution: x of 150 = 60 x 150 60 100 100 x 60 150 = = x = 40%
- 3. Example-23 A purchaser received a discount of 10% on the selling price of a mobile. If he paid Rs.4500, what was the selling price of the mobile? Solution: Let x be the selling price Paid percentage is 90% Paid amount is 4500 90% of 4500=x 4500 100 90 = x 90 100 4500=x x = Rs. 5000 Example-24 What was the Abu-Tarique’s income last year if he paid an income tax of Rs.30,000 which is 5% of his income? Solution: Let x be the income 5% of x = 30000 30000 100 5 = x 5 100 30000=x =x Rs.60000 per year.
- 4. Example-25 The assets of a person increased from Rs.150,000 to Rs.350,000. What was the rate of change? Solution: Original Amount = Rs.150,000 New Amount = Rs.350,000 Amount of Change = 350000 – 150000 = 200000 100 AmountOriginal ChangeofAmount ChangeofRate = = 100 150000 200000 = 133.33% Use of percentage in business Discount: Reduction in stated price of an item from seller. SP = Stated price AD = Amount of discount DR = Discout rate DP = Discounted price Where DP = SP – AD Or DP = SP ( 1 – DR ) DR = 𝐴𝐷 𝑆𝑃 ∗ 100
- 5. Example-26 The price of a chair is Rs. 1000,find the discounted price if the discount rate is 5%. Solution: Given information SP = Rs. 1000 DR = 5% = 0.05 DP = ? DP = SP ( 1 – DR ) DP = 1000 ( 1 – 0.05 ) DP = 1000 ( 0.95 ) DP = Rs.9 5 0 Example-27 The price of a chair is Rs.1000 is available at discount of Rs.50 ,find the discounted price and the discount rate . Solution: Given information SP = Rs. 1000 AD = Rs.50 DP = ? DR = ? DP = SP – AD DP = 1000 – 50 DP = Rs.9 5 0 Now find DR = 𝐴𝐷 𝑆𝑃 ∗ 100 DR = 50 1000 ∗ 100 DR = 5%
- 6. Example-28 A customer received a discount of 5% on the book value of a chair and paid Rs.950,What was the book value of the chair. Solution: Given information SP = ? DP = Rs 950 DR = 5% = 0.05 SP = 𝐷𝑃 ( 1−𝐷𝑅 ) SP = 950 ( 1−0.05 ) SP = 950 0.95 SP = Rs.1000 Example-29 The market price of a chair is Rs.1000 if the customer got two consecutive discount 5% and an additional discount 4%. Find the final value (Discounted price). Solution: Given information SP = 1000 DR1 = 5% = 0.05 DR2 = 4% = 0.04 DP = SP ( 1 - DR1 ) ( 1 - DR2 ) DP = 1000 ( 1 – 0.05 ) ( 1 – 0.04 ) DP = 1000 ( 0.95 ) ( 0.96 ) DP = Rs.912
- 7. DO YOURSELF Q.1 An item with price of Rs.2000 is available at 12% discount.Find the discounted price and amount of discount.( Ans: DP = 1760 and AD = 240) Q.2 A shopkeeper gave 7 1 2 % discount to customer on a mobile, if the customer paid Rs.32375 for this mobile.Find the face value of the mobile.(Ans:3500 Q.3 A mobile shopkeeper offered 7.5% discount to a customer,find the discounted price and actual price of the mobile if the discount allowed was Rs.2625.(Ans: DP = 32375 and Actual price = 35000) Commission Commission is a sum of money paid to a salesperson for every sale that he makes. Example-30 A property agent sold a plot in Karachi for Rs5000000 and received 2% commission.Find agent`s commission. Solution: Agent`s commission = 2% of 5000000 Agent`s commission = 0.02 × 5000000 Agent`s commission = Rs.100000
- 8. Example-31 At 2% rate of commission a sales agent got Rs.300000 on the sales of the plots if the price of a plot is 5000000.Find the value of his sales and the number of plots he sold. Solution: Given information The price of a plot = Rs 5000000 Commission rate = 2% = 0.02 Commission on one plot = 0.02 × 5000000 Commission on one plot = Rs. 100000 Number of plots sold = 𝑇𝑜𝑡𝑎𝑙 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑜𝑛 𝑜𝑛𝑒 𝑝𝑙𝑜𝑡 Number of plots sold = 300000 100000 Number of plots sold = 3 plots Total value of his sales = 3 × 5000000 Total value of his sales = Rs.15000000 Example-32 An agent received Rs.100000 for selling a plot,his rate of commission was 2%.What was the selling price? Solution: Given information Commission = Rs 100000 Commission rate = 2% = 0.02 Commission = Commission rate × Selling price 100000 = 0.02 × Selling price Selling price = 100000 0.02 Selling price = Rs.5000000
- 9. DO YOURSELF Q.1 How much does a property dealer receive commission on a property of worth Rs.2000000 at 1.5 % . (Ans: Rs.30000) Q.2 At 1.5% rate of commission a property dealer got Rs. 150000 on the sales of the properties if the price of a property is 20,00000.Find the value of his sales and the number of properties he sold? (Total value = 100,00000 and Number of plots = 5)