Profit

When an object is sold for more money than it was bought for,
 the difference is called profit.

Example

John bought a CD for £12 and sold it for £15.
What was his profit ?

Loss

When an object is sold for less money than it was bought for,
the difference is called loss.
This is really a negative profit.

 

Example

John bought a CD for £12 and sold it for £10.
Did he make a  profit ?

 

Percentage profit / loss

This is the profit or loss expressed as a percentage of the original price

Example
 John bought a CD for £12 and sold it for £15.
 What was his profit as a percentage of the price he paid for it?

 

VAT

Value added tax is added to most goods and services.

On 4th January 2011, the rate of VAT changed from 17.5% to 20%.

 

Examples

With calculator

   A scooter is advertised at £350.
      VAT is an additional 17.5%.
What is the total cost of the scooter including VAT ?

    

  

Without calculator

A washing machine is advertised at £350, ex Vat.
      VAT is an additional 20%.
What is the total cost of the washing machine including VAT ?

     

 

Appreciation

 

When an object appreciates, it increases in value.

Example

Glenfox Lodge was valued at £165,000 on 30th April 2001.
 If appreciation is 4% per annum, what is the value of Glenfox Lodge on 30th April 2003?

 

 

Depreciation

When an object depreciates, it decreases in value.

Example

A car was bought for £ 10,000 in 1998. Each year, it depreciated in value by 20%.
What was the car worth 4 years later?

Since the rate of depreciation has remained constantat 20%,

this could also be done using CR^y

Back / reverse Percentage

Here, the original cost needs to be found .

Example

A television set is sold for £150, including VAT at 17.5%.
Find the cost of the TV without VAT.

 

    

Alternatively