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 ?

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 ?

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?

Example

A television set is sold for £150, including VAT at 17.5%.

Find the cost of the TV without VAT.

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 ?

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?

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}