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10
Percentage and its Applications
10.1 INTRODUCTION In every day life, you come across situations in which the word percent is made use of very frequently. For example, you see a banner in the market. Sale upto 50 percent off You read news in the newspaper Votes turnout in the poll was over 65 percent Banks have lowered the rate of interest on fixed deposits from 7.5 percent to 6.5 percent There are many such situations in different walks of life where the concept of percentage finds its use. In this lesson we shall study percent as a fraction or a decimal and its application in solving problems of profit and loss, discount, sales tax, instalments etc. 10.2 OBJECTIVES After studying the lesson, the learner will be able to : write a fraction and a decimal as a percent and vice-versa calculate specified percent of a given number or a quantity solve problems based on percentage solve problems on profit and loss calculate simple interest and amount when a given sum of money is interested for a specified time period on a given rate of interest. state the need for given discount define discount and discount series (successive discounts, no. more than three) find a single discount equivalent to a given discount series calculate the discount and the selling price of an article, given marked price of the article, and the rate of discount

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solve inverse problems pertaining to discount calculate the sales tax on commission and the selling price of an article, given the marked price of the article and the rate of sales tax or commission solve inverse problems pertaining to sales tax solve inverse problems on commission determine the amount of each instalment when goods are purchased under investment plan (case of equal instalments only) determine the rate of interest when equal instalments are given 10.3 EXPECTED BACKGROUND KNOWLEDGE Four fundamental operations on whole numbers, fractions and decimals. 10.4 PERCENT You have learnt a lot about fractions. A fraction denotes part of a whole. For instances 3 out of 4 equal parts. Similarly, of 100 equal parts. A fraction whose denominator is 100 is read as a percent, for example percent. In Fig. 10.1, 33 out of 100 small squares are shaded. This means 33 of the larger square is shaded. 100 5 is read as five 100 3 means 4

7 17 means 7 out of ten equal parts and means 17 out 10 100

The word percent is abbreviated form of the Latin word per centum which means per hundred or hundredths. The symbol % is used for the term percent. A ratio whose second term is 100 is also called a percent.

Fig. 10.1

When we say Anita has secured 80% marks in mathematics. This means that she has secured 80 marks out of 100 or 40 marks out of 50. Similarly, when we say a man has spent 20% of his income on food, it means that out of every hundred rupees of his income, he has spent Rs 20 on food. Suppose, we wish to compare two fractions 3 4 and . 4 5

Since these are fractions having different denominators we need to convert them into fractions with common denominator.

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3 3 5 = 15 4 4 4 = 16 = ; = 4 4 5 20 5 5 4 20 Since

16 > 15, 16 > 15 4 3 ; and so > 20 20 5 4

Here, we have converted each of the two fractions into fractions with least common denominator. As a convention, we convert if possible each fraction into a fraction with denominator 100. In the above example,
3 3 25 = 75 4 4 20 = 80 = ; = 4 25 100 5 5 20 100 4

Since 80 > 75. we get

4 3 > . 5 4

10.5 CONVERSION OF A DECIMAL INTO A PERCENT AND VICE VERSA Let us consider the following examples : 0.37 = 37 7 = 70 146 = 37%, 0.7 = = 70%; 1.46 = = 146% 100 10 100 100

Thus, to write a decimal as a percent, we move the decimal point two places to the right and put the % sign. 0.25 = 25% 0.1 = 10% Conversely, To write a percent as a decimal, we drop the % sign and insert or move the decimal point two places to the left. For example, 37% = 0.37 99% = 0.99 110% = 1.10 89% = 0.89 100% = 1.00 212% = 2.12 35% = 0.35 3% = 0.03 0.1% = 0.001 0.61 = 61% 0.07 = 7% 0.37 = 37% 1.4 = 140%

10.6 CONVERSION OF A PERCENT INTO A FRACTION AND VICE VERSA To write a percent as fraction, we drop the % sign and divide the number by 100. For example, 69% = 4.5% = 69 100 4.5 = 45 100 1000 13% = 170% = 13 100 170 100 3% = 216% = 3 100 216 100

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In general, x% = Conversely,

x . 100

To write a fraction as a percent, we multiply the fraction by 100, simplify it and suffix the % sign. For example
1 1 = 4 100 % = 25% 4 2

FH IK 3 F3 I = H 2 100K % = 150%
3 3 = 5 100 % = 60% 5

FH

IK

CHECK YOUR PROGRESS 10.1 1. Write each of the following decimals as percent : (a) 0.56 (e) 0.97 (a) 75% (d) 2% (a) 35% (b) 0.03 (f) 0.8 (b) 14% (f) 25% (b) 40% (c) 0.75 (g) 0.04 (c) 3% (g) 400% (c) 70% (d) 0.02 (h) 1.4 (d) 115% (h) 350% (d) 85%

2. Write each of the following percents as decimal :

3. Write each of the following percents as fraction : 4. Convert each of the following fractions into percent : (a) 3 4 (b) 1 5 (c) 3 10 (d) 4 25

5. Aruna obtained 19 marks in a test of 25 marks. What was her percentage of marks ? 6. Gurmeet got half the answers correct. What percent of their answers were correct ? 7. A suit piece consists of cotton and rayon fibre in which cotton is 3 out of 8 parts. What is the percentage of cotton in the suit piece ? 8. Kavita read 84 pages of 100-page book. What percent of the book did she read ? 9. A class of a school had 45% girls. What percent of the class were boys ? 10. One-fourth of the shoes in a shop were on sale. What percent of the shoes were there on normal price ?

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11. In the word PERCENTAGE, what percent of the letters are Es ? 12. If three fourths of students of a class wear glasses, what per cent of students of the class do not wear glasses ? 13. There are 20 eggs in a fridge and 6 of them are brown. What percent of eggs are brown ? 14. 60 candidates appeared in an examination and 45 of them passed. What percent of candidate passed ? 15. Mr. X spends Rs 310 out of Rs 500 and Mr. Y spent Rs 500 out of Rs 800 every week. Compute their spending as percentages and state who spends higher percentage. 16. In a class of 40 students, 10 secured first division, 15 secured second division, and 13 just qualified. What is the percentage of students that failed ? 10.7 CALCULATION OF PERCENT OF A QUANTITY To determine the percent of a number or quantity, we first change the percent to a fraction or a decimal and then multiply with the number. For example, or 45% of 90 = 0.45 90 = 40.50 45% of 90 =
45 90 = 40.50 100

60% of 120 = 0.60 120 = 72.00 18% of 215 = 0.18 215 = 38.70 135% of 80 = 1.35 80 = 108 Example 10.1 : A family spends 35% of its monthly budget of Rs 7500 on food. How much do they spend on food ? Solution : Expenditure on food = 35% of Rs 7500 = 0.35 Rs 7500 = Rs (0.35 7500) = Rs 2625.00 or Rs 2625. Example 10.2 : In a garden, there are 500 plants of which 35% are trees, 20% are shrubs and 25% are herbs. The rest are creepers. Find out the number of trees, shrubs, herbs and creepers. Solution : Number of trees = 35% of 500 = 0.35 500 = 175 Number of shrubs = 20% of 500 = 0.20 500 = 100 Number of herbs = 25% of 500 = 0.25 500 = 125 Since the remaining plants are creepers, Number of Creepers = 500 (175 + 100 + 125) = 500 400 = 100

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Example 10.3 : 35% of students in a school are girls. If the total number of students is 1240, find the number of boys in the school. Solution : Number of girls in the school = 35% of 1240 = 0.35 1240 = 434
No. of boys in the school = 1240 434 = 806

Aliter Since 35% of the students in the school are girls, (100% 35%) i.e., 65% of the students in the school are boys.

Number of boys = 65% of 1240 = 0.65 1240 = 806

Example 10.4 : What percent of 240 is 96 ? Solution : Percent = 96 100 % 240

= 40% Example 10.5 : If 27% of a is 54, then find a. Solution : We have 27% of a = 54 27 100 a = 54 a= 54 100 = 200 27

Thus, the value of a is 200. Example 10.6 : 60 is reduced to 45. What is the reduction percent ? Solution : Let 45 is less than 60 by x%, then Reduction = 60 45 = 15 Reduction percent = 15 100 % = 25%. 60

Example 10.7 : If 80 is increased to 125, what is the increase percent ? Solution : Increase = 125 80 = 45 Increase percent = 45 100 % = 56.25%. 80

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Example 10.8 : A voluntary organisation was collecting money for a relief camp. Their target was Rs 20000, but they exceeded their target by 45%. How much money did they collect ? Solution : The money collected = 20000 + 45% of 20000 = Rs 20000 + Rs (0.45 20000) = Rs 20000 + Rs (9000.00) = Rs 20000 + Rs 9000 = Rs 29000 Hence, they collected Rs 29000. Example 10.9 : 44% of the students of a class are girls. If the number of girls is 6 less than the number of boys, how many students are there in the class ? Solution : Given that 44% of the students are girls. So, (100 44)% i.e., 56% of the students are boys. Thus, there are 12% less girls than boys. By the given condition, 12 of the number of students = 6 100

Number of students =

6 100 = 50 12

Thus, there are 50 students in the class. Example 10.10 : Raman has to secure 40% marks for passing. He gets 178 marks and fails by 22 marks. Find the maximum marks. Solution : Since Ramesh secures 178 marks and fails by 22 marks, the pass marks are 178 + 22 = 200. Let x be maximum marks, then 40% of x = 200 or or 40 x = 200 100 x=

200 100 = 500 40 Thus, the maximum marks are 500. CHECK YOUR PROGRESS 10.2 1. Find : (a) 15% of 440 (c) 47% of Rs 1200 (b) 16% of 1250 (d) 39% of 1700 metres.

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2. At a school, 40% of the students come on foot to the school. There are 600 students in the school. How many students come on foot to the school ? 3. There are 36 children in a class 25% of them are boys. How many are boys ? How many are girls ? 4. An alloy is a combination of zinc and copper with 30% zinc and 70% copper. If a piece of this alloy weighs 150 kg , how much zinc it contains ? 5. Naresh earns Rs 15400 per month. He keeps 50% for household expenses, 15% for his personal expenses, 25% for expenditure on his children and the rest he saves. What amount does he save per month ? 6. There are 32 boys in a class. On a particular day 12.5% of them were absent. How many boys were absent on that day ? 7. It takes me 45 minutes to go to school and I spend 80% of the time travelling by bus. How long does the bus journey last ? 8. During a general election, 70% of the population voted. If 70000 people cast their votes, what is the population of the town ? 9. The cost of a saree was Rs 450. Its cost has increased to Rs 495. By what percent did the cost increase ? 10. What percent of 160 is 64 ? 11. If 120 is reduced to 96, what is the percentage reduction ? 12. In an election, 25% voters did not cast their votes. A candidate secured 40% of the votes polled and was defeated by 900 votes. Find the total number of voters. 13. As income is 25% more than Bs and Bs income is 8% more than Cs. If As income is Rs 4050, then find the Cs income. 14. A reduction of 10% in the price of tea enables a dealer to purchase 25 kg more tea for Rs 22500. What is the reduced price per kg of tea ? Also, find the original price per kg. 15. A rise of 25% in the price of sugar compels a person to buy 1.5 kg of sugar less for Rs 240. Find the increased price as well as the original price per kg of the sugar. 16. A number is first increased by 10% and then decreased by 10%. What is the net increase or decrease percent ? 17. A man donated 5% of his monthly income to a charity and deposited 12% of the rest in a bank. If he has Rs 11704 with him now, what was his monthly income ? 10.8 APPLICATIONS OF PERCENTAGE We come across a number of situations in our day to day life wherein we use the concept of percent. In the following, we discuss applications of the concept of percentage in different fields.

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10.8.1 PROFIT AND LOSS Let us recall the terms and formulae related to profit and loss that we have learnt earlier. Cost Price (C.P.) : The price at which an article is purchased, is called its cost price. Selling Price (S.P.) : The price at which an article is sold, is called its selling price. Profit (Gain) : When S.P.>C.P., then there is a profit. Profit = S.P. C.P. Loss : When C.P. > S.P, then there is a loss. Loss = C.P. S.P. Note : Gain or Loss is always calculated on C.P. Formulae and Formula (1) gives Profit = or or or S.P. C.P. = C. P. Profit % 100 C. P. Profit % 100 Profit% =

FH Profit 100IK % C. P. F Loss I Loss% = H C. P. 100K %

...(1) ...(2)

C. P. Profit % S.P. = C. P.+ 100 S.P. = Pr FH 100 +100ofit% IK C. P. ...(3)

Similarly, Formula (2) gives Loss = or or C.P. S.P =

S.P. = C. P.

or

S.P. =

FG 100 Loss% IJ C. P. H 100 K

....(4)

Let us now consider some examples to illustrate the applications of these formulae in solving problems related to profit and loss.

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Examples 10.11 : A shopkeeper bought an almirah from a wholesale dealer for Rs 4500 and sold it for Rs 6000. Find his profit or loss percent. Solution : Here C.P. of the almirah = Rs 4500 S.P. of the almirah = Rs 6000 Since S.P. > C.P., there is a profit Profit = S.P. C.P. = Rs 6000 Rs 4500 = Rs 1500

Profit % =

FH Profit 100IK % C. P. F 1500 100IJ % = G H 4500 K

Example 10.12 : A retailer buys a cooler for Rs 3800 and overhead expenses on it are Rs 50. If he sells the cooler for Rs 4400, determine his profit percent. Solution : Here, C.P. of the cooler = Rs (3800 + 50) = Rs 3850 S.P. of the cooler = Rs 4400 Since S.P. > C.P., there is a profit Profit = Rs 4400 Rs 3850 = Rs 550

Profit % =

FH Profit 100IK % C. P. F 550 I = H 3850 100K %

100 % 2 i.e. 14 % . 7 7 Example 10.13 : By selling a scooter to a customer for Rs 22400 an auto-dealer makes a profit of 12%. Find the cost price of the scooter. Solution : Here, S.P. of the scooter = Rs 22400, Profit % = 12% Using formula (3), we have S.P. =

FG 100 + Pr ofit% IJ C. P. H 100 K

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or

C.P. =

S. P.100 100 + Pr ofit % 22400 100 100 + 12 22400 100 112

= Rs

= Rs

= Rs 20000 Thus, the cost price of the scooter is Rs 20000. Example 10.14 : By selling a cycle for Rs 2024, a cycle merchant loses 12%. If he wishes to make a gain of 12%, what will be the selling price of the cycle ? Solution : First Part : S.P. = Rs 2024 and Loss % = 12% From formula (4), we have C.P. =
S. P.100 100 Loss% 2024 100 100 12 2024 100 = Rs 2300 88

= Rs

= Rs

Second Part : C.P. of the cycle = Rs 2300 and Gain (Profit)% = 12% Using formula (3), we have S.P. = = Pr FH 100 +100ofit% IK C. P. 100 + 12 2300 100 112 2300 100

= Rs

= Rs 2576 Thus, the selling price of the cycle will be Rs 2576. Example 10.15 : If the cost price of 15 articles is the same as the selling price of 12 articles, find the gain or loss percent in the transaction. Solution : Let C.P. of an article be Rs x, Then C.P. of 15 articles = Rs 15x ...(i)

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or or

S.P. of 12 articles = Rs 15x S.P. of 1 articles = Rs 15 FH 12 xIK ...(ii)

Since S.P. > C.P., there is a profit (gain) in the transaction Gain = Rs

FH 15x xIK 12 F 3x I F xI = Rs H 12 K or Rs H 4 K FH Gain. 100IK % C. P Fx 4 I = G x 100J % H K F1 I = H 4 100K % = 25%

or

Gain % =

Thus, the gain in the transaction is 25%. Example 10.16 : By selling 45 oranges for Rs 160, a women loses 20%. How many oranges should she sell for Rs 112 to gain 20% on the whole ? Solution : First Part : S.P. of 45 oranges = Rs 160 Loss% = 20% So, by formula (4), we have C.P. of 45 oranges = S. P.100 100 Loss% 160 100 100 20 160 100 = Rs 200. 80

= Rs = Rs

Second Part : C.P. of 45 oranges = Rs 200 Gain% = 20%

S.P. of 45 oranges = =

100 + Gain% C.P. 100 100 + 20 Rs 200 100

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= Rs

120 200 100

= Rs 240 Now, number of oranges for Rs 240 = 45 Number of oranges for Rs 112 =
45 112 = 21 240

Thus, the women should sell 21 oranges for Rs 112. CHECK YOUR PROGRESS 10.3 1. A shopkeeper buys an article for Rs 320 and sells it for Rs 240. Find his gain or loss percent. 2. A dealer buys a wrist watch for Rs 450 and spends Rs 30 on its to repairs. If he sells the same for Rs 600, find the profit per cent. 3. A dealer sold two machines at Rs 2400 each. On selling one machine he gained 20% and on selling the other he lost 20%. Find the dealers gain or loss percent. 4. A sells an article costing Rs 1000 to B and earns a profit of 6%. B, in turn sells it to C at a loss of 5%. At what price did C purchase the article ? 5. By selling 90 ball pens for Rs 160, a person loses 20%. How many ball pens should he sell for Rs 96, so as to have a gain of 20% ? 6. If the selling price of 20 articles is equal to the cost price of 23 articles, find the loss or gain percent. 7. A watch was sold at a profit of 12%. Had it been sold for Rs 33 more, the profit would have been 14%. Find the cost price of the watch. 8. By selling a book for Rs 258, a publisher gains 20%. For how much should he sell it to gain 30% ? 9. A vendor bought bananas at 6 for 5 rupees and sold them at 4 for 3 rupees. Find his gain or loss percent. 10.8.2 Simple Interest All the transactions that take place around us involve money. Sometimes, a person has to borrow some money as a loan from his friends, relatives, bank etc. He promises to return it after a specified time period. So, he has to give back not only the money he borrows but also some extra money to the lender for using his money. The money borrowed is called the principal, usually denoted by P. The extra money paid is called interest, usually denoted by I.

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The sum of principal and the interest is called the amount usually denoted by A. A=P + I Interest is calculated on the principal Interest is mostly expressed as a rate percent per year (per annum). Interest depends on how much money (P) has been borrowed and the duration of the time (T) for which it is borrowed. Interest is calculated according to an agreement, which specifies a certain percent of the principal for each years use, called the rate of interest. I=P R T Interest as calculated above is called simple interest. Example 10.17 : A man borrowed Rs 50000 from a finance company for buying a motor bicycle for a period of 2 years. If the finance company charged simple interest at the rate of 15% per annum, how much interest was paid by the man to the finance company. Solution : Here, Principal (P) = Rs 50000 Time (T) = 2 years Rate (R%) = 15% = 0.15 We have I=P R T = Rs (50000 0.15 2) = Rs 15000 Hence, the man paid Rs 15000 as the interest to the finance company. Example 10.18 : A certain sum of money was deposited for 5 years. Simple interest at the rate of 12% was paid. Calculated the sum deposited if the simple interest received by the depositor is Rs 1200. Solution : Let the sum deposited be Rs P. Given that I = Rs 1200; T = 5 years; R = 12% We have I = P R T or P= I RT 1200 = Rs 2000 012 5 .

= Rs

Thus, the sum deposited was Rs 2000.

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Example 10.19 : At what rate of simple interest will a sum of Rs 3000 become Rs 4920 at simple interest in 4 years ? Solution : Here, P = Rs 3000; A = Rs 4920; T = 4 years We have I = A P = Rs 4920 Rs 3000 = Rs 1920 Now, I=P R T R= = I 1920 = Rs PT 3000 4 16 = 16% 100

Thus, at the rate of 16%, Rs 3000 will become Rs 4920 in 4 years. Example 10.20 : In what time will Rs 8000 amount to Rs 12000, if simple interest is charged at the rate of 6% per annum ? Solution : Here, P = Rs 8000; A = Rs 12000; R = 6% = 0.06 We have Now, I=A P = Rs 12000 Rs 8000 = Rs 4000 I=P R T T= = I 4000 = PR 8000 0.06 1 100 = 8 years 3 12

= 8 years 4 months Thus, in 8 years 4 months, Rs 8000 will amount to Rs 12000 at the rate of interest 6% per annum. CHECK YOUR PROGRESS 10.4 1. Ramesh borrowed Rs 7000 from his friend at 8% per annum simple interest. He returned the money after 2 years. How much did he pay back altogether ? 2. Jaya deposited Rs 15600 in a bank. The bank pays interest at 8% per annum. Find the interest she will receive at the end of 3 years. 3. Subnam lent Rs 25000 to her friend. She gave Rs 10000 at 10% per annum and the remaining at 12% per annum. How much interest did she receive in 2 years ? 4. Nalini borrowed Rs 5000 from her friend at 8% per annum. She returned the money after 6 months. How much amount did she pay to her friend ?

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5. Find the interest received by Anil if he deposits Rs 16000 for 8 months at the rate of 9% per annum. Also, find the amount. 6. Shalini deposited Rs 14500 in a finance company for 3 years and received Rs 4785 as simple interest. What was the rate of interest per annum ? 7. In how many years will Rs 8000 amount to Rs 16000, if simple interest is earned at the rate of 12% per annum ? 8. In how much time will simple interest be annum ? 9. In which case, is interest earned more : (a) Rs 5000 deposited for 5 years at 4% per annum (b) Rs 4000 deposited for 6 years at 5% per annum ? 10. At what rate of interest will simple interest be half the principal in 5 years ? 10.9 DISCOUNT You must have seen all around advertisements of the following types, especially during the festival seasons. SALE Discount upto 50% A discount is a reduction in the marked (or list) price. 25% discount means a reduction of 25% in the marked price of an article. For instance, if the marked price of an article is Rs 100, it is sold for Rs 75, i.e., Rs 25 less than the marked price. Note. Discount is always calculated on Marked Price. Marked Price (or list price) : The marked price (M.P) of an article is the price at which it is listed for sale. Discount : The discount is the reduction from the marked price of the article. Net Selling price : In case of discount sale, the price of the article obtained by subtracting discount from the list price is called the Net selling Price. Let us consider the following example to illustrate. Example 10.21 : A shirt with marked price Rs 165 is sold at a discount of 10%. Find its net selling price. Solution : Here, Marked Price (M.P.) of the shirt = Rs 165, Discount = 10%

1 th of the principal at the rate of 10% per 4

Net selling price = Marked price Discount

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= Rs 165 10% of Rs 165 = Rs 165 Rs 10 FH 100 165IK

= Rs 165 Rs 16.50 = Rs 148.50 Thus, the net selling price of the shirt is Rs 148.50. Aliter Since the discount offered is 10% S.P. = M.P. 10% of M.P. = 90% of M.P. or S.P. = 90 Rs 165 100

= Rs 148.50 Example 10.22 : A pair of socks is marked at Rs 40 and is being offered at Rs 32. Find the discount per cent being offered. Solution : Here, M.P. = Rs 40; and S.P. = Rs 32 So, Discount = M.P. S.P. = Rs 40 Rs 32 = Rs 8 Discount % = = Discount 100 M. P. 8 100 40

= 20 Hence, the discount being offered is 20%. 10.9.1 Discount Series Sometimes a manufacturer, offers a discount of 10% on discounted price in addition to a previous discount of 20%, because suddenly he gets a supply of cloth at a very low price. He may allow another discount of 5% on the discounted price, to some of his customers for prompt payments. In other words, he allows a discount series. In a discount series, the first figure denotes the discount on the list price, the second denotes the discount on the discounted price and so on. If a shirt is marked for Rs 120 and a discount series 20%, 10% and 5% is offered, then computation for calculating net selling price is as under :

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Marked price Rs 120 with a discount series 20%, 10% and 5%. 20 20% discount on Rs 120 = Rs 120 = Rs 24 100 Discounted price = Rs (120 24) = Rs 96

10 = Rs 9.60 10% discount on Rs 96 = Rs 96 100 Discounted price = Rs (96 9.60) = Rs 86.40 5 = Rs 4.32 100

5% discount on Rs 86.40 = Rs 86.40

Net selling price = Rs (86.40 4.32) = Rs 82.08. 10.9.2 Conversion of Discount Series to a Single Discount Instead of computing a series of discounts one by one, it is sometimes more convenient to reduce the series to a single discount. Let us take some examples to illustrate : Example 10.23 : Convert the discount series 20%, 10% and 5% to an equivalent single discount. Solution : Let the list price 20% discount on Rs 100 Discounted price 10% discount on Rs 80 Discounted price = Rs 100 = Rs 100 20 = Rs 20 100 = Rs (100 20) = Rs 80 10 = Rs 80 = Rs 8 100 = Rs (80 8) = Rs 72

5 = Rs 3.60 and 5% discount on Rs 72 = Rs 72 100 Discounted price = Rs (72 3.60) = Rs 68.40 Single discount on Rs 100 = Rs (100 68.40) = 31.60 or 31.6%

Example 10.24 : An old scooter is sold at three successive discounts of 10%, 5% and 2%. If the marked price of the scooter is Rs 18000, find the selling price of the scooter. Solution : Here, list price = Rs 18000 First discount of 10% = Rs 18000 10 = Rs 1800 100

Price after first discount = Rs (18000 1800) = Rs 16200

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Second discount of 5% = Rs 16200 Price after second discount

5 = Rs 810 100

= Rs (16200 810) = Rs 15390 Third discount of 2% = Rs 15390 2 = Rs 307.80 100

Price after third discount = Rs (15390 307.80) = Rs 15082.20 Thus the net selling price of the scooter is Rs 15080.20 Aliter Net selling price of the scooter = (100 2)% of (100 5)% of (100 10)% of Rs 18000 98 95 90 = Rs 18000 100 100 100 = Rs 15082.20 Example 10.25 : Find the single discount equivalent to the discount series of 20%, 15% and 10%. Solution : Let the marked price = Rs 100 Price after the given discount series = (100 10)% of (100 15)% of (100 20)% of Rs 100 = 0.90 0.85 0.80 Rs 100 = Rs 51.20 Hence, the total discount = M.P. S.P. = Rs 100 Rs 51.20 = Rs 48.80 Hence, the equivalent single discount = Rs 48.80 on M.P. of Rs 100 = 48.8% Example 10.26 : A dealer buys a table listed at Rs 1500 and gets successive discounts of 20% and 10%. He spends Rs 20 on transportation and sells it at a profit of 10%. Find the selling price of the table. Solution : Here, list price of the table = Rs 1500 Price after a discount series of 20% and 10% = (100 10)% of (100 20)% of Rs 1500 = 90 80 Rs 1500 100 100

FH

IK

= Rs 1080

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Since the dealer spends Rs 20 on transportation C.P. of the table = Rs 1080 + Rs 20 = Rs 1100 Profit = 10%

S.P. of the table = = =

Pr FH 100 +100ofit% IK C. P. 100 + 10 Rs 1100 100

110 Rs 1100 100 = Rs 1210 Thus, the selling price of the table is Rs 1210. CHECK YOUR PROGRESS 10.5 1. A coat is marked at Rs 1200. Find its selling price if a discount of 15% is offered. 2. A man pays Rs 2100 for a machine listed at Rs 2800. Find the rate of discount offered. 3. An article listed at Rs 2650 is sold at a discount of 10%. Due to festival season, the shopkeeper allows a further discount of 5%. Find the selling price of article. 4. Find a single discount equivalent to a discount series given in each of the following discount series : (a) 25%, 20% and 10% (b) 20%, 15% and 10% (c) 20%, 10% and 5%. 5. Which of the following discount series is better for a customer ? 20%, 10% and 5% OR 10%, 5% and 20%.

6. The list price of a table fan is Rs 840 and it is available to a retailer at 25% discount. For how much should the retailer sell it to earn a profit of 15% ? 7. The marked price of a TV set is Rs 25000. A discount series of 20%, 10%, 5% is allowed on it. How much money does one have to pay for the TV set ? 8. If a shopkeeper marks his goods 50% more than their cost price and allows a discount of 40%, find his gain or loss per cent. 9. The list price of a watch is Rs 320. After two successive discounts it is sold for Rs 244.80. If the first discount is 10%, what is the rate of second discount ? 10. A retailer buys shirts from a manufacturer at the rate of Rs 75 per shirt and marked them at Rs 100 each. He allows some discount and gets a profit of 30% on the cost price. What percentage discount does he allow to his customers ?

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10.9.3 Sales Tax Government levies some taxes to have earning called revenue. One such tax which is levied on the sale of goods is called sales tax. The rates of sales tax are different for different commodities. Some essential commodities are exempted from sales tax. This tax is charged on the net selling price of commodities and its rate is expressed as a percentage. For example, if an article is sold for Rs 750 and the rate of sales tax is 8%, then Sales tax = Rs 750 8 = Rs 60 100 Price inclusive of sales tax = Rs (750 + 60) = Rs 810 The customer will have to pay Rs 810. Example 10.27 : The marked price of a pair of shoes is Rs 320. If the rate of sales tax is 4%, calculate the amount to be paid by a customer for the purchase of the shoes. Solution : Marked price of shoes = Rs 320 Rate of sales tax = 4% Sales tax = 4% of Rs 320 = 4 Rs 320 100

= Rs 12.80 Thus, the customer has to pay (Rs 320 + Rs 12.80) = Rs 332.80 for purchasing the shoes. Examples 10.28 : Anita purchased a shirt for Rs 594 including sales tax. If the rate of sales tax is 8%, find the list price of the shirt. Solution : Let the list price of the shirt be Rs P Then P + 8% of P = 594 or or or 108% of P = 594

108 P = 594 100

Thus, the list price of the shirt is Rs 550. Example 10.29 : Hari Om bought a radio set for Rs 1870, after getting 15% discount on the list price and then 10% sales tax on the reduced price. Find the list price of the radio set. Solution : Let the list price or the radio set be Rs P. Thus, selling price of the radio after discount= Rs P 15% of Rs P = 85% of Rs P

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= Rs

85 P 100
85 FH 100IK P

Sales tax = 10% of Rs =

10 85 P 100 100 85 P 1000

= Rs

The net price to be paid for the purchase of the radio set is Rs 85 85 FH 100 P + 1000 PIK = Rs 935 1000 P

Equating it to Rs 1870, we get 935 P = 1870 1000 or P= 1870 1000 = 2000 935

Thus, the list price of the radio set is Rs 2000. Example 10.30 : The list price of a washing machine is Rs 9000. The dealer allows a discount of 5% on the cash payment. How much money will a customer pay to the dealer in cash, if the rate of sales tax is 10% ? Solution : Here, list price = Rs 9000 and discount = 5%
Cash price of the washing machine

= Rs 9000 5 9000 100 = Rs (9000 450) = Rs 8550

FH

IK

Sales tax = 10% of Rs 8550 = 10 Rs 8550 100

= Rs 855 Hence, the customer has to pay Rs 8550 + Rs 855 = Rs 9405 for the purchase of the washing machine. Example 10.31 : The list price of the air-conditioner is Rs 25630. The rate of sales tax is 10% The customer requests the dealer to allow a discount to such an extent that the price of the

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air-conditioner amounts to Rs 25630 inclusive of sales tax. Find the discount in the price of the air-conditioner. Solution : Let Rs P be the net price exclusive of sales tax. 10 P 110 P = Then, price + sales tax = P + 100 100 This is given as Rs 25630

or

110 P = 25630 100 P = 23300 Discount allowed = Rs (25630 23300) = Rs 2330 CHECK YOUR PROGRESS 10.6

1. The marked price of a sewing machine is Rs 3500. If the sales tax on sewing machine is charged at the rate of 6%, find how much a customer has to pay for purchasing the machine. 2. Amita purchases a pair of socks whose list price is Rs 44. The shopkeeper charges sales tax at the rate of 5%. Find how much money Amita has to pay for purchasing the socks. 3. Mrs. Mohini purchased a saree for Rs 1100 including sales tax. If the list price of the saree is Rs 1000, find the rate of sales tax charged. 4. A refrigerator is available for Rs 13915 including sales tax. If the rate of sales tax is 10%, find the selling price of the refrigerator. 5. Radhika purchased a car with a marked price of Rs 2.1 lakhs at a discount of 5%. If the sales tax is charged at the rate of 12%, find the amount Radhika had to pay for purchasing the car. 6. Dayakant bought a set of cosmetic items for Rs 345 including 15% sales tax and a purse for Rs 110 including 10% sales tax. What percent is the sales tax charged on the whole transaction ? [Hint. C.P. of cosmetic items = Rs (345 1.15) ; and C.P. of purse = Rs (110 1.1)] 7. Kamal wants to buy a suitcase whose list price is Rs 504. The rate of sales tax is 5%. He requests the shopkeeper to reduce the list price to such an extent that he has to pay Rs 504 only. Calculate the discount given in the price of the suit-case. 10.10 COMMISSION Manufacturers of goods, farmers and owners of properties, frequently uses the services of a middle man to find a buyer in order to sell their goods or properties. The middle man is called an agent, who gets some money for the services rendered by him. This money paid is called commission. In general, commission is expressed in terms of percentage.

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251

Example 10.32 : A book agent sold 140 books at Rs 20 each. His commission was 25%. How much money did he earn as commission ? Solution : Total price of books = Rs (20 140) = Rs 2800 Amount of commission = 25% of Rs 2800 = 25 Rs 2800 100

= Rs 700 Thus, the book agent earns Rs 700 as commission. Example 10.33 : A salesman earns Rs 300 as commission at the rate of 8%. For what amount did he sell the goods ? Solution : Let the amount be Rs x Then x 8 = 300 100 x= 300 100 8

= 3750 The sales man sold goods worth Rs 3750. Example 10.34 : A commission merchant charged Rs 427.50 for selling 1500 packets of salt, at 3% commission. At what price per bag did he sell the salt ? Solution : Let the selling price per packet be Rs x. Then amount of commission = 3% of Rs (1500 x) 3 = Rs 1500x 100 But this is given to be Rs 427.50. Thus, 45x = 427.50 or x= 427.50 45

FH

IK

= Rs 45x

or x = 9.5 Thus, the selling price per packet of salt was Rs 9.50. CHECK YOUR PROGRESS 10.7 1 1. A commission merchant sells 1200 tins of oil at Rs 270 a tin on commission of 2 %. 2 Find the amount of the commission. Also find the net proceeds.

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2. An auctioneer sold a property worth Rs 17.8 lakhs. His commission was 1.25%. How much did the auctioneer earn as commission ? 3. A commission merchant charged Rs 4212 as commission at rate of 3% for selling rice at Rs 450 per bag. How many bags of rice did he sell ? 4. A commission merchant sells a certain amount of goods at a commission of 10% in the first two weeks of a month. His commission is then raised to 12%, and he sells an equal amount of goods in the remaining part of the month. If his total earning (commission) were Rs 8000, how much did he sell altogether ? 10.11 INSTALMENT BUYING With the cost of articles going up day by day it has become difficult for the common man to buy some articles like scooter, fridge, colour TV etc. which are needed by him and his family. Such articles are available on easy instalments. We shall study about instalment purchase scheme. 10.11.1 What is Instalment Buying ? Instalment purchase scheme, enables a person to buy costly goods like colour TV sets, refrigerator, video cameras, scooters etc. on convenient terms of payment. In this scheme, the customer does not make full payment of the cost of the article at the time of purchase, but makes a partial payment in the beginning and takes away the article for use. The remaining payment is made in easy monthly, quarterly or half yearly instalments, as per the agreement signed between the customer and the shopkeeper. Cash Price : It is the amount for which the article can be purchased on full payment i.e., the selling price of the article. Cash down Payment : It is the partial payment made by the customer at the time of signing the agreement and taking away the article for use. In fact, it is a part of the selling price. Instalments : It is the amount which is paid by the customer at regular intervals towards the remaining part of the selling price of the article. It may be noted that in the instalment plan only part payment of the total cost is paid by the customer at the time of purchase. The remaining part of the cost is paid on subsequent dates; and therefore the seller charges some extra amount for deferred payments. This extra amount is actually the interest charged on the amount of money which the customer owes to the seller at different times of instalments paid. In the following, we solve a few examples to illustrate the process. Example 10.35 : Bimla buys a sewing machine, which is available for Rs 2600 cash payment or under an instalment plan for Rs 1000 cash down payment and 3 monthly instalment of Rs 550 each. Find the rate of interest charged under the instalment plan. Solution : Cash payment price = Rs 2600 Cash down payment = Rs 1000

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Balance to be paid in instalments = Rs 1600 Amount paid in 3 instalments = Rs 550 3 = Rs 1650 Interest charged in the instalment plan = Rs (1650 1600) = Rs 50 The buyer owes to the seller for the 1st month = Rs 1600 The buyer owes to the seller for the 2nd month = Rs (1600 550) = Rs 1050 The buyer owes to the seller for the 3rd month = Rs (1050 550) = Rs 500 Total = Rs 3150
She has to pay interest on Rs 3150 for 1 month.

But the interest she has to pay = Rs 50 If R% is the rate of interest p.a. then,

3150 R= =

1 R = 50 12 100

50 12 100 % 3150 400 % 21

1 = 19 % 21 1 Rate of interest paid by her in the instalment plan is 19 21 %. Example 10.36 : A computer is available for Rs 34000 cash or Rs 20000 cash down payment together with 5 equal monthly instalments. If the rate of interest charged under the instalment plan is 30% per annum, calculate the amount of each instalment. Solution : Cash price = Rs 34000

Cash down payment = Rs 20000 Balance to paid in 5 equal installments = Rs 14000 Let each instalment be = Rs P Interest charged under instalment plan = Rs (5P 14000) The buyer owes to the seller For the 1st month = Rs 14000 Fr the 2nd month = Rs (14000 P) For the 3rd month = Rs (14000 2P) For the 4th month = Rs (14000 3P) For the 5th month = Rs (14000 4P) Total = Rs (70000 10P)

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Thus, he had to pay interest on Rs (70000 10P) for 1 month at the rate of 30% p.a.

(70000 10P)

1 30 = 5P 14000 12 100 1 = 5P 14000 40

or or or or or

(70000 10P)

70000 10P = 40(5P 14000) 70000 10P = 200P 560000 210 P = 560000 + 70000 P= 630000 210

= 3000

Amount of each instalment = Rs 3000. CHECK YOUR PROGRESS 10.8

1. A T.V. set is available for 21000 cash or for Rs 4000 cash down payment and 6 equal monthly instalments of Rs 3000 each. Calculate the rate of interest charged under the instalment plan. 2. Anil purchased a type writer priced at Rs 6800 cash payment under the instalment plan by making a cash down payment of Rs 2000 and 5 monthly instalments of Rs 1000 each. Find the rate of interest charged under the instalment plan. 3. A scooter is available for Rs 30000 cash or for Rs 15000 cash down payment and 4 equal 1 monthly instalments. If the rate of interest charged under the instalment plan is 33 %, 3 find the amount of each instalment. 4. A microwave oven is available for Rs 9600 cash or for 4000 cash down payment and 2 3 equal monthly instalment. If the rate of interest charged is 22 % per annum, find the 9 amount of each instalment. LET US SUM UP Percent means per hundred. Percents can be written as fractions as well as decimals and vice-versa. To write a percent as a fraction, we drop the % sign and divide the number by 100. To write a fraction as a percent, we multiply the fraction by 100, simplify it and suffix the % sign.

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To determine the specific percent of a number or quantity, we change the percent to a fraction or a decimal and then multiply. When the selling price is more than the cost price of the goods, there is a profit (or gain) When the selling price is less than the cost price of the goods, there is a loss Profit (Gain) = S.P. C.P. Gain% = Further S.P. = Gain 100 C. P. 100 + Gain% C. P. 100 ; ; ; Loss = C.P. S.P. Loss = S.P. = Loss 100 C. P. 100 Loss% C. P. 100

The simple interest (S.I.) on a principal (P) at the rate of R% for a time T years, is calculated, using the formula S.I. = P R T Discount is a reduction in the list price of goods. Discount is always calculated on the marked price of the goods. (Marked price discount), gives the price, which a customer has to pay while buying an article. Two or more successive discounts are said to form a discount series. A discount series can be reduced to a single discount. Sales tax is charged on the sale price of goods. Commission is paid to an agent for his services in arranging the sale or purchase of goods from some one else. An Instalment plan enables a person to buy costlier goods. TERMINAL EXERCISE 1. Write each of the following as a per cent : (a) 7 20 (b) 0.25 (c) 1.4 (d) 0.07

2. Write each of the following as a decimal : (a) 63% (b) 13% (c) 3% (d) 0.3%

3. Write each of the following as fraction : (a) 0.13% (b) 1.3% (c) 11.3% (d) 113%

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4. Find each of the following : (a) 37% of 400 5. What percent of 700 is 294 ? 6. By what percent is 60 more than 45 ? 7. Find the number whose 15% is 270 ? 8. What number increased by 10% of itself is 352 ? 9. What number decreased by 7% of itself is 16.74 ? 10. Arun at the beginning of a year had a bank balance of its 17500 and at the end of the year he had a balance of Rs 21350. By what percent did his balance increase ? 11. A man loses 25% by selling a scooter for Rs 8400. For what amount did he buy the scooter ? 12. A commission merchant charged Rs 700 as commission for selling 100 bags of cotton at 5%. Find the price of one bag at which it was sold ? 13. Shalim deposited Rs 14000 in a bank for 2 years and received Rs 4200 as simple interest. At what rate per annum, was interest paid to him ? 14. Simple interest on a sum of money is 1 rd of the sum itself and the number of years is 3 thrice the rate percent. Find the rate of interest. (b) 3.5% of 800

15. Ahmad purchased a bicycle by making a cash down payment of Rs 400 and 3 monthly instalments of Rs 275 each. The bicycle was also available on cash payment of Rs 1200. Find the rate of interest per annum charged under the instalment plan. 16. Rita purchased a washing machine for Rs 4000 cash down payment and 4 equal monthly instalments. The washing machine was also available for Rs 15000 cash payment. If the rate of interest charged in the instalment plan is 18% p.a. Find the amount of each instalment.

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ANSWERS Check Your Progress 10.1 1. (a) 56% (e) 97% 2. (a) 0.75 (e) 0.02 3. (a)
35 100 70 100

(b) 3% (f) 80% (b) 0.14 (f) 0.25 ; 35 : 100

(c) 75% (g) 4% (c) 0.03 (g) 4 (b)

(d) 2% (h) 140% (d) 1.15 (h) 3.5 ; 40 : 100

(c) 4.

; 70 : 100 (b) 20% 6. 50% 10. 75%` 14. 75%

(d)

; 85 : 100 (d) 16% 8. 84% 12. 25%

(a) 75%

(c) 30% 7. 37.5% 11. 30%

5. 76% 9. 55% 13. 30%

15. 62% ; 62.5 %; Y16. 5%.

Check Your Progress 10.2 1. (a) 66 (b) 200 (c) Rs 564 (d) 663 metres 5. Rs 1540; 9. 10% 13. Rs 3000 17. Rs 14000

2. 240 students 6. 4 boys 10. 40% 14. Rs 90 ; Rs100

3. 9 boys ; 27 girls 4. 45 kg 7. 36 minutes 11. 20% 15. Rs 40; Rs 32 8. 1 lakh 12. 6000 votes 16. 1% decrease

Check Your Progress 10.3 1. Loss 25% 5. 36 ball pens 9. 10% loss Check Your Progress 10.4 1. Rs 8120 5. Rs 960 ; Rs 16960 8. 2 years 6 months 2. Rs 3744 6. 11% 9. (b) 3. Rs 5600 7. 8 years 4 months 10. 10% 4. Rs 5200 2. Profit 25% 6. 15% gain 3. 4% loss 7. Rs 1650 4. Rs 1007 8. Rs 279.50

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Check Your Progress 10.5 1. Rs 1020 4. (a) 46% 2. 25% (b) 38.8% 6. Rs 724.50 10. 2.5% 3. 2265.75 (c) 31.6% 7. Rs 17,100 8. Loss 10%

5. Both same 9. 15%

Check Your Progress 10.6 1. Rs 3710 5. Rs 2,23,440 Check Your Progress 10.7 1. Rs 8100 Check Your Progress 10.8 1 1. 21 % 19 Terminal Exercise 1. 2. 3. 4. (a) 35% (a) 0.63 (a) 13 10000 (b) 25% (b) 0.13 (b) 13 1000 (c) 140% (c) 0.03 (c) 113 1000 (d) 7% (d) 0.003 (d) 113 100 1 2. 17 % 7 3. Rs 4000 4. Rs 2000 2. Rs 22250 3. 312 bags 4. Rs 80,000 2. 46.20 3 6. 13 % 4 3. 10% 7. Rs 24 4. Rs 12650

(a) 148

(b) 28 8. 320 12. Rs 140 1 14. 3 % 3

5. 42% 9. 18

1 6. 33 % 3 10. 22%

7. 1800 11. Rs 11200 13. 15% 16. Rs 2850.86

1 15. 19 % 21