## Profit

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 ?

## Loss

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 ?

## Percentage profit / loss

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?

## Back / reverse Percentage

Example

A television set is sold for £150, including VAT at 17.5%.
Find the cost of the TV without VAT.

## VAT

Examples

With calculator

A scooter is advertised at £350.
What is the total cost of the scooter including VAT ?

Without calculator

A washing machine is advertised at £350, ex Vat.
What is the total cost of the washing machine including VAT ?

## Appreciation

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?

## Depreciation

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 CRy