Ratio

Ratios are also used when dividing up amounts.

Example Peter-John is 12 years old. His brother, Luke, is 9. Their grandfather gives them $1400,
which is to be divided between them in the ratio of their ages. How much does each
of them get?

Answer The ratio of their ages is 12:9

We can simplify this. Dividing by 3 gives 4:3.

So Amit gets 4 parts, and Arun gets 3.

This means that the money has to be divided into 7 parts (4 + 3).

$1400 ÷ 7 = $200, so 1 part is $200.

 Amit gets 4 parts: 4 × $200 = $800.

(Check that they add to make the total amount: $800 + $600 = $1400.)

A ratio can have more than 2 numbers in it. Here is another typical question.

Question The angles in a triangle are in the ratio 1:2:9. Find the size of the largest angle.

Answer 1 + 2 + 9 = 12 so in total, there are 12 parts.

The angles in a triangle add up to 180 degrees.

So 1 part is 180 ÷ 12 = 15

The largest angle in the ratio is the 9.

9 × 15 = 135 degrees.
Question In a certain town, the ratio of left-handed people to right-handed people is 2:9. How

many right-handed people would you expect in a group with 10 left-handed people?

Answer Make a mapping as follows:

Left Handed Right Handed

2 9

10 x

Cross Multiply 2x = 10 x 9

x = 10 x 9 / 2

= 45 right handed persons

Direct proportion

Two quantities are in direct proportion when they increase or decrease in the same ratio. For
example, you could increase something by doubling it, or decrease it by halving.

Here is a typical problem:

Question Twelve pencils cost $72. Find the cost of 30 pencils.

Answer To solve this problem, we need to know the cost of one pencil.

We know that 12 pencils cost $72, so if we divide 72 by 12 to give us the cost of one
pencil:

72 ÷ 12 = 6

So 1 pencil costs $6. Now we need to know the cost of 30 pencils. We multiply 6p by 30.

6 × 30 = $180.
 So 30 pencils cost $180.

Question Marva buys 15 felt-tip pens. It costs her $285. How much would 20 pens have cost?

Answer You divide 285 by 15, then multiply the answer by 20.

 15 pens cost $285

Loss

If an article is sold for less than it cost, then it is said to have been sold at a loss.

Loss = Cost Price – Selling Price

= CP - SP

Loss is often expressed as a percentage of the cost price. This is called the percentage loss.

Example A car was purchased for $20 000 and is sold for $16 000. What is the percentage

loss?

Solution:

So, the car was sold at a percentage loss of 20%.

If an article is sold for more than it cost, then it is said to have been sold at a profit.

Profit is often expressed as a percentage of the cost price. This is called the percentage profit.

Example

A house was bought for US$150 000 and is sold for US$180 000. What is the percentage profit?

Solution:
Simple Interest

If $P is invested at the rate of r per annum for t years, then the total (simple) interest, $I, earned
is given by

I = Prt/100

Example: Calculate the simple interest earned when $6000 is invested at 3⅓% per annum

for 30 months

Solution:

Discount

The marked price of an article that is offered for sale is the amount written on the price tag.

Shopkeepers sometimes allow the customers to have the article for less than the marked price.
For example, if the marked price is $20, the shopkeeper may sell the article for $18. The $2 that
has been deducted from the marked price is called a discount.

Discounts are often expressed as percentages, and then always as a percentage of the marked
price.

So, if an article marked at $20 is sold for $18, then:

Example

A jeweller discounts a necklace marked at $900 by 25%.

Solution:
Commission

If a salesperson (or an agent) is paid a certain percentage of the value of the sales, then the
amount received by the salesperson (or the agent) is called a commission.

Example

A car salesperson is paid 4% commission. How much does he receive if he sells a car worth
$20,000?

Solution:

Reverse percentages

Sometimes a question will ask you to work backwards and find the original price of something
after the price has increased. If you are given a quantity after a percentage increase or decrease,
and you need to find the original amount, use this method:

Example

A radio sells for £63, after a 40% increase in the cost price. Find the cost price.

Solution

Start with the original amount as 100%.

Cost price = 100%

We are told the selling price is a 40% in the cost price.

So the selling price is 100% + 40% = 140% of the cost price.

We know that the selling price is £63, so 140% = £63.

140% = £63

1% = £63/140

1% = £0.45

The cost price is 100%, so multiply £0.45 by 100.

Cost price = 0.45 × 100 = £45.

Example

A new car falls in value by 30% in a year. After a year, it is worth £8,400.

Find the price of the car when it was new.

Solution

Remember that the original price of the car is 100%.

Original price = 100%.

Second-hand price = 100% - 30% = 70%.

So £8,400 = 70% of the original price.

So 1% of original price = £8,400 ÷ 70

Original price = 100% = 100 x 1% = 100 x (£8,400 ÷ 70)

= £12,000.

It is easy to go wrong in this type of question. Always check that your answer is realistic.
Changing Currency

When you go abroad you need to change your money to the currency of the country you visit.

Example

Chris-ann is going to England on holiday and changes $20 000 to pounds. How many pounds
does she get?

One pound is 158 Jamaican dollars.

Answer: Make a mapping as shown

Jamaican Dollars($) Pounds(£)

158 1

20 000 x

Cross Multiply: 158x = 20 000

x = 20 000/158

x = £126.58 pounds