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LO1:LO2:Define and differentiate discounts, markups and interestRead and correctly interpret word problems with above07/30/12lntaylor TOCLearning Objectives07/30/12lntaylor TOCDiscounts07/30/12lntaylor TOCInterest and CommissionDef1:Def2:Markup (in $$) is the sales price cost (aka profit) Markup (in %) is the sales price/costDiscount (in $$) is the original sales price new priceDiscount (in %) is (original sales price new price)/original sales price07/30/12lntaylor TOCDefinitionsDef3:Interest is money paid for the use of moneyCommission is money paid a salesperson to sell an item(s) PK1:Knowledge of fractions and decimals07/30/12lntaylor TOCPrevious KnowledgeStep1:Step2:You absolutely must carefully read & understand discount questionsbefore you start the problem!!!!!!You have two choices of where to start this problem (20 or 130)Only one will give you the correct answer!07/30/12lntaylor TOCA dress is discounted 20% from an original sales price of $130.What is the new sales price?Step3:Hint: Look for the number following the word sales priceThat number is the beginning numberTake the other number, convert it to a decimal and subtract it from 1You are looking for a $$ number so this becomes a multiplierStep4:Multiply the two numbersThe result is your answerNote:Discount means you will end up with a lower price!$ 1301 0.20 = 0.80sales price130x 0.80$ 104Now you try

A TV was originally priced at $500 and sold for $300. What percent was it discounted?07/26/12lntaylor TOCStep1:Step2:You absolutely must carefully read & understand discount questionsbefore you start the problem!!!!!!You have two choices of where to start this problem (500 or 300)Only one will give you the correct answer!07/30/12lntaylor TOCA TV was originally priced at $500 and sold for $300. What percent was it discounted?Step3:Hint: Look for the number following the word original priceThat number is the beginning numberYou are looking for a % so this is a denominatorFind the new sales price and subtract it from the old sales priceThat is the numeratorStep4:Convert to fraction, then decimal, then percentThe result is your answerNote:Discount means you will end up with a lower price!_____$ 500500 300 = 200original price500$ 20040%Now you try

What was the original price of a pair of shoes if the new price of $250 included a 40% discount?07/26/12lntaylor TOCStep1:Step2:You absolutely must carefully read & understand discount questionsbefore you start the problem!!!!!!You have two choices of where to start this problem (250 or 40)Only one will give you the correct answer!07/30/12lntaylor TOCWhat was the original price of a pair of shoes if the new price of $250 included a 40% discount?Step3:Hint: Look for the number following the word original priceThat number is the beginning number (unknown = x)You are looking for a % so this is a denominatorFind the new sales priceThis is the numeratorFind the percent and subtract from 100Step4:Solve for x by converting percent to decimalThe result is your answerNote:This problem is like a markup problem and you will end up with a higher price!_____ x$250original price= 60%40%$250 = 0.60x$250 = x 0.60 = $416.67Step1:Step2:You absolutely must carefully read & understand markup questionsbefore you start the problem!!!!!!You have two choices of where to start this problem (20 or 100)Only one will give you the correct answer!07/30/12lntaylor TOCA dress is marked up 20% from an original cost of $100.What is the sales price?Step3:Hint: Look for the number following the word costThat number is the beginning numberTake the other number, convert it to a decimal and add it to 1Did you notice discounts are subtracted from 1And markups are added to 1?You are looking for a $$ number so this becomes a multiplierStep4:Multiply the two numbersThe result is your answerNote:Markup means you will end up with a higher price!$ 1001 + 0.20 = 0.80cost$100x 1.20$ 120Now you try

A TV cost a retailer $500. She sold it for $625. What was the percent markup?07/26/12lntaylor TOCStep1:Step2:You absolutely must carefully read & understand discount questionsbefore you start the problem!!!!!!You have two choices of where to start this problem (500 or 625)Only one will give you the correct answer!07/30/12lntaylor TOCA TV cost a retailer $500. She sold it for $625. What was the percent markup?Step3:Hint: Look for the number following the word original priceThat number is the beginning numberYou are looking for a % so this is a denominatorFind the new sales priceThat is the numeratorStep4:Divide and convert to percentSubtract 100%; the result is your answerNote:Discount means you will end up with a lower price!_____$ 500$625cost500$ 625125%- 100% = 25%Now you try

If a retailer markups up their shirts 150%, what is the sell price of a shirt that cost him $50?07/26/12lntaylor TOCStep1:Step2:You absolutely must carefully read & understand markup questionsbefore you start the problem!!!!!!You have two choices of where to start this problem (50 or 150)Only one will give you the correct answer!07/30/12lntaylor TOCIf a retailer markups up their shirts 150%, what is the sell price of a shirt that cost him $50?Step3:Hint: Look for the number following the word costThat number is the beginning numberTake the other number, convert it to a decimal and add it to 1Did you notice discounts are subtracted from 1And markups are added to 1?You are looking for a $$ number so this becomes a multiplierStep4:Multiply the two numbersThe result is your answerNote:Markup means you will end up with a higher price!$ 501 + 1.50 = 2.50cost$50x 2.50$ 125150%Step1:Step2:You absolutely must carefully read & understand interest questionsbefore you start the problem!!!!!!You have two choices of where to start this problem (4000 or 5)Only one will give you the correct answer!07/30/12lntaylor TOCJane has $4,000 earning 5% in an account with Great Bank and Savings.How much interest will Jane make in one year. Assume simple interest.Step3:Hint: Look for the number following the word dollars or $That number is the beginning number (aka principal)Take the other number, convert it to a decimalDid you notice we did not add/subtract 1?That is because they want to know only the $ made from interestYou are looking for a $$ number so this becomes a multiplierStep4:Multiply the two numbersThe result is your answer$ 4,000 0.05$4,000x 0.05$ 2005%Now you try

How much interest does Kevin pay on a loanof $10,000 with 5% simple interest? 07/26/12lntaylor TOCStep1:Step2:You absolutely must carefully read & understand interest questionsbefore you start the problem!!!!!!You have two choices of where to start this problem (10,000 or 5)Only one will give you the correct answer!07/30/12lntaylor TOCHow much interest does Kevin pay on a loanof $10,000 with 5% simple interest? Step3:Hint: Look for the number following the word dollars or $That number is the beginning number (aka principal)Take the other number, convert it to a decimalDid you notice we did not add/subtract 1?That is because they want to know only the $ made from interestYou are looking for a $$ number so this becomes a multiplierStep4:Multiply the two numbersThe result is your answer$ 10,000 0.05$10,000x 0.05$ 5005%Now you try

How much money (balance) is in Karens accountIf she earns 7% interest after one year? Assume simple interest.07/26/12lntaylor TOCStep1:Step2:You absolutely must carefully read & understand interest questionsbefore you start the problem!!!!!!You have two choices of where to start this problem (7 or 12,000)Only one will give you the correct answer!07/30/12lntaylor TOCHow much money (balance) is in Karens account if she earns7% interest on $12,000 after one year? Assume simple interest.Step3:Hint: Look for the number following the word dollar or $That number is the beginning number (aka principal)Take the other number, convert it to a decimal and add it to 1You are looking for a $$ number so this becomes a multiplierStep4:Multiply the two numbersThe result is your answerNote:Interest is also known as a return on investment!$ 12,0001 + 0.07 = 1.07$12,000x 1.07$ 12,8407%Now you try

John earns a 5% commission on every pair of shoes he sells.Last month John sold $42,500 worth of shoes. How much commission did John make last month?07/26/12lntaylor TOCStep1:Step2:You absolutely must carefully read & understand commission questionsbefore you start the problem!!!!!!You have two choices of where to start this problem (5 or 42,500)Only one will give you the correct answer!07/30/12lntaylor TOCJohn earns a 5% commission on every pair of shoes he sells.Last month John sold $42,500 worth of shoes. How much commission did John make last month?Step3:Hint: Look for the number following the word dollars or $That number is the beginning number (aka sales or revenue)Take the other number, convert it to a decimalDid you notice we did not add/subtract 1?That is because they want to know only the $ made from commissionYou are looking for a $$ number so this becomes a multiplierStep4:Multiply the two numbersThe result is your answer$ 42,500 0.05$42,500x 0.05$ 2,1255%Now you try

Mary earns a 7% commission on every house she sells.Last months sales for Mary were $4,675,000. How much commission did Mary make last month before taxes?07/26/12lntaylor TOCStep1:Step2:You absolutely must carefully read & understand commission questionsbefore you start the problem!!!!!!You have two choices of where to start this problem (7 or 4,675,000)Only one will give you the correct answer!07/30/12lntaylor TOCMary earns a 7% commission on every house she sells.Last months sales for Mary were $4,675,000. How much commission did Mary make last month before taxes?Step3:Hint: Look for the number following the word dollars or $That number is the beginning number (aka sales or revenue)Take the other number, convert it to a decimalDid you notice we did not add/subtract 1?That is because they want to know only the $ made from commissionYou are looking for a $$ number so this becomes a multiplierStep4:Multiply the two numbersThe result is your answer$ 4,675,000 0.07$4,675,000x 0.07$ 327,2507%Note:Yes people do make that kind of money in sales!07/30/12lntaylor TOCProblemAnswerHow much is a 20% discount on a shirt of $50?What is a 55% markup on a shirt that cost $100?What is the sales price on $50 shoes with a 55% markup?What is the 10% discounted price of a $5,000 car?What is a 10% commission on a $30,500 car?How much interest does 7% pay on a $40,000 balance?What is the sell price of a $60 shirt after a 60% markup? What is a 15% commission on a $45,000 insurance policy?What is the final sales price on a $500 suit that has been discounted 25% and another 10%?>$10>>>>>$55$77.50$4,500$3,050$2,800> $96> $6,750>$337.50($500(.75)(.9))clear answers