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7. A retailer buys 30 boxes of strawberries at sh. 3000 each and sells 27
boxes at 30% profit. How much profit does he make?
8. At a sale, the marked prices were reduced by 10%.
(a) How much would a buyer have to pay for a shirt marked sh. 25 000?
(b) If a customer pays sh. 48 000 for a dress. What is the marked price?
Discount
Sometimes a business reduces a small fraction of the selling price if the
customer either pays cash or buys a lot of goods. This reduction is called
discount. Most of the time, discounts are expressed as a percentage of the
original price.
Example 6.4
A television set is selling at sh. 150 000. A customer is offered 4% discount for
paying cash. How much does the customer pay for the TV?
Solution
Discount = 4% of sh. 150 000
= sh. 6 000.
The customer pays sh. 150 000 – sh. 6 000 = sh. 144 000
Commission
Sometimes firms use agents who are not actually their employees to sell their
goods. The agent is usually paid a commission for selling the goods.
Commission is normally given as a percentage of the sales made.
Example 6.5
A saleslady sold goods worth sh. 750 000. She was paid 2% commission on
the sales. How much commission did she get?
Value of goods sold = sh. 750 000
2
Commission paid is = ×750 000
100
= sh. 15 000
Interest
Simple interest
If you borrow money from a bank or other financial institution then you will have
to pay interest (the charge paid for borrowing) in addition to your repayments.
©Kyebambe Girls’ SS 2015 5