1. Profit and Loss Profit : When you sell something for
MORE than you bought it.
Loss : When you sell something for
LESS than you bought it.

2. Profit and Loss Example 1
St. Merrin FC buy a player for £75, years later they
sell the same player for £63,500.
How much of a loss did St. Merrin make on the player?
Loss = 75,000 – 63,500
= 11,500
They made a loss of £11,500

3. Profit and Loss Example 2
A shopkeeper buys 10 copies of a book at £7.50 each.
He sells 6 books at a price of £13.00 each and
the remaining 4 books for £5.50 each.
a) Calculate the profit made on the first 6 books
b) Calculate the loss made on the last 4 books
c) Did the shopkeeper make an overall profit or loss? Explain
Profit on one book = £ £7.50 = £5.50
So profit on 6 books = £5.50 x 6 = £33
b) Loss on one book = £ £5.50 = £2.00
So loss on 4 books = £2.00 x 4 = £8.00
c) Overall Profit = £ £8.00 = £25.00

4. Profit and Loss Example 3 A shopkeeper buys crisps for 20p each.
He want to make a 40% profit on every pack he sells.
How much must he sell them for.
10% 
20 ÷ 10 = 2p
40% 
2p x 4 = 8p
He must sell each packet for 20p + 8p = 28p

5. Profit and Loss = 50% Example 2
An electronics shop buy TV’s for £300 each and sell them to customers for £450.
What percentage profit do they make on each TV.
Profit = 450 – 300 = £150
= 50%

6. Profit and Loss = 37.5% Example 3
A travel shop buy package holidays to Spain for £800.
Due to lack of demand they are forced to cut there losses and sell them for £500.
What percentage loss do they make on each package.
Loss = 800 – 500 = £300
= 37.5%

7. 17.5% VAT VAT means : Value added Tax Why do we pay it ?
To pay for NHS, bin collection,
School education etc……
What is the current percentage rate of VAT
17.5%

8. VAT – 17.5% VAT – 17.5% Example 1 10%  1000 ÷ 10 = £100
How much will I pay for the computer including VAT below ?
10%  1000 ÷ 10 = £100
£ VAT
5%  half of 10% = £ 50
2.5%  half of 5% = £ 25
17.5%
£175
Total cost is £ £175 = £1175

9. VAT – 17.5%
Example 2
Price of the Plasma TV is shown below is excluding VAT.
What is the total price I have to pay.
10%  1300 ÷ 10 = £130
£1300 (excluding VAT)
5%  half of 10% = £ 65
2.5%  half of 5% = £ 32.50
17.5%
£227.50
Total cost is £ £ = £

10. Gas / Electricity Bills
A Gas or electricity bill shows you:
The VAT at 5%
How many units have been used
The total charge
The charge for a unit
3567
290
13.5 39 15
3277 3 13 42 28
290

11. Simply multiply by exchange rate
Foreign Currency
Converting to another currency
Exchange rate : This is the number of euros you get for a £1
Euro €
Dollar $
1.44
1.51
Yen
190
Exchange rate £1=
Example : How many euros will
I get for £100.
Simply multiply by exchange rate
£  € 1 
1.44
100 
100 x 1.44 =
144 €

12. Foreign Currency Converting to another currency Euro € Dollar $ 1.44
1.51
Yen
190
Exchange rate £1 =
Example : How many Dollars and
Yens will I get for £50.
£  $ 1 
1.51 50 
50 x 1.51 =
$75.50
£  Yen 1 
190 50 
50 x 190 =
9500 Yen

13. Simply divide by exchange rate
Foreign Currency
Converting back to £’s
euros to £’s : Simply divide by exchange rate.
Euro €
Dollar $
1.44
1.51
Yen
190
Exchange rate £1=
Example : How many £’s will
I get for 20 € .
Simply divide by exchange rate
€  £
1.44  1 20 
20 ÷ 1.44 =
£13.89

14. Foreign Currency Converting back to £’s Euro € Dollar $ 1.44 1.50 Yen
190
Exchange rate £1 =
Example : A business man returns
from American with $450.
He converts them back to £’s.
How much will he get back ?
$  £
1.50  1
450 
450 ÷ 1.50 =
£300

15. Higher Purchase (HP) WHAT IS HIGHER PURCHASE ?
When you deal with a shop to pay for goods in instalments
It will end up costing you more

16. £50 deposit and 12 monthly payments of £65
Higher Purchase (HP)
FOR SALE
£50 deposit and 12 monthly payments of £65
£750 or
Example:
I can buy this computer for £750 cash
I can also buy this computer using higher purchase agreement.
How much does it cost to buy this computer using the
higher purchase agreement?
Instalments = 12 x £65 = £780
Total Cost = Instalments + Deposit
= £780 + £50
= £830

17. Higher Purchase (HP) Del Boy’s Autos Example 2:
I bought a car from Del Boy
using Higher Purchase.
I left a deposit of 10%
and agreed to make 18
monthly payments of £105
CASH PRICE £1800
What is the total HP price?
Instalments = 18 x £105 = £1890 Deposit = 10% of £1800 = £180
Total Cost = Instalments + Deposit
= £ £180
= £2070
How much extra have I paid for the car?
£ £1800 = £270

18. Just working out percentages
Simple Interest
Just working out percentages
Simple Interest
I have £400 in the Bank.
At the end of each year I receive 7% of £400 in interest.
How much interest do I receive after 1 years?
How much do I now have?

19. Just working out percentages
Simple Interest
Just working out percentages
Simple Interest
I have £1200 in the Bank.
I receive 10% p.a. in interest. How much interest
do I receive if I take my money out after 3 months.

20. Just working out percentages
Simple Interest
Just working out percentages
Simple Interest
Stuart invested £4000 in the building Society with
an interest rate of 5% p.a.
How much does he have after 6 years?

21. House & Contents & Valuables Insurance
Items
Charge
Building per £1000
£0.73
Contents per £1000
£3.57
Valuables per £1000
£4.75
Example 1 : How much is the House Insurance for a
house valued at £
Value
Premium
(cost of Insurance)
£1 000
£0.73
£40 000
(£40000 x £0.73)
= £29.20
1000

22. House & Contents & Valuables Insurance
Items
Charge
Building per £1000
£2.56
Contents per £1000
£3.57
Valuables per £1000
£4.75
Example 2 : Jack wants to insure his house which is worth
£ What is Jack’s premium?
Value
Premium
(cost of Insurance)
£1 000
£0.73
£80 000
(£80000 x £0.73)
= £58.40
1000