3 CD ecnc iss ent, departm' reed Consider rtrnent of eee for Ren in a buyer in the men's depat nu rts from - ant He buy a bate of hit om 9 ‘bo’ to give the £11.50 each, His normal practi tax (VAT) at then he has to add value added Selling price, ‘ce? ‘ 1 eat des to sel What does this give as the sine er £20.50 secs He profers to sell the shirt at jus because he will hay, : jg VAT, becat ave iat £19.95 including VAT. 19.95 is VAT, ay? ton, B out how mush af il he have to Pay en needs to wor out . Amount te theta authority. How much rryou have worked through thi, You should be able to solve this problem afte! chan, Class discussion the following Discuss what you need to be able to do to solve Problems, ird is estimated to be 1 The total number of a certain species of bird sang tt the bea me 5000. is believed that the number is et aa like to 5% a year. The Society for the Protection of Birds find out how many years it will be before the population drops below 2000, The cost of a unit of el lectricity is 8.65 p including VAT at 8%. It is rumoured that, if particular party wins power at the next is very id rs is very important, erstanding of © scanned with OKEN Scanner4 Percentage Percentage increase and percentage decrease Percentage increase or decrease arises in many different situations. We may read that: ¢ certain workers are to receive an increase in their wages of 8% « value added tax (VAT) may be increased from 20% to 22% « the basic rate of income tax should be reduced from 20% to 18% « all the items ina sale are offered at a discount of 20% Changes are expressed in percentage terms as a percentage of the quantity before any changes are made. This is because this makes it easier to calculate the actual change ina particular case and to compare one change with another. If'a wage of £100 per week is increased by 8%, then the new wage is 108% of £100 = 1.08 x £100 = £108 Ifan article costs £55 plus sales tax at 173%, then the full cost is 1.175 x £55 = £64.63 (correct to the nearest penny) 117}% of £55 Ifa woman earns £550 and has to pay tax on it at the rate of 23%, she actually receives (100 — 23)% of £550, which is 77% of £550. 77% of £550 = 0.77 x £550 = £423.50 Ifa discount of 25% is offered in a sale, a piece of furniture, originally marked at £760, will cost 75% of £760 = 0.75 x £760 = £570 Retailers buy in goods, which are usually sold at an increased price. The increase is often called the mark-up and is normally given as a percentage of the buying-in price. Occasionally goods are sold at a decreased price, which means they are sold at a loss. ‘The loss is also given as a percentage of the buying-in price. Ifa store puts a mark-up of 50% on an article it buys for £100, its mark-up is 50% of £100 = 0.5 x £100 = £50 and the selling price is 150% of £100 = 1.5 x £100 = £150 © scanned with OKEN ScannerSTP Maths 9 \ Worked example > Asecond-hand ear dealer bought # car for £3500 ang yy, it Find his percentage mark-up. Mark-up = selling price ~ buying-in price = £4340 — £3500 = £840 i mo x 100 Ge mark-up = Huying-in price x 100 = 24 ‘Therefore the mark-up is 24%. In questions 1 to 4, find the percentage mark-up. 1 Buying-in price £12, mark-up £3 2 Buying-in price £28, mark-up £8.40 3 Buying-in price £16, mark-up £4 4 Buying-in price £55, mark-up £5.50 Worked example > Aretailer bought a leather chair for £375 and sold it for £285, pg, loss. loss = buying-in price — selling price oO % 1035 is the lossy = £375 - £285 the buying-n pie” = £90 Joss x 100 ‘% loss = Fi singein price £90 = p75 * 100 = 24 ‘Therefore the loss is 24%. In questions 5 to 8, find the percentage loss. 5 Buying-in price £20, loss £4 6 Buying-in price £125, loss £25 7 Buying-in price £64, loss £9.60 8 Buying-in price £160, loss £38.40 84 © scanned with OKEN Scanner4 Percentages Worked example ___ > Anartticte cos Find the se ‘30 is sold at a gain of 26% ing price, ‘The selling price is 100% of £30 + 26% of £30, Alternatively, we ean find the gain, which is which is 26% of the original cost, ses ores ‘and add this to the original cost. Se ee Gain » 25% of £30 Selling price = 125% of £30 026 x £30 = 1.25 x £30 tat Selling price » £30 + £7.50 ‘Therefore the selling price is £37 Therefore the sell questions 9 to 14, find the selling price. 9 Cost £50, gain 12% 0 Cost £64, gain 122% 1 Cost £29, gain 110% 2 Cost £36, loss 50% 18 Cost £75, loss 64% |4 Cost £128, loss 3 2 nn questions 15 to 19, find the weekly cash increase for each smployee. 15 Ian earns £320 per week and receives a rise of 1%, 16 Nairn earns £280 per week and receives a rise of 2. 17 Sitara earns £225 per weck and receives a rise of 3%. 18 Lyn earns £370 per week and receives a rise of 5% 19 Joe earns £400 per week and receives a rise of 23% For questions 20 to 22, which is the better eash pay rise, and by how much? 20 a 6% ona weekly wage of £100, or * Db 4% ona weekly wage of £250 21 a 81% ona weekly wage of £180, or b 2% on a weekly wage of £400 22 a 4% on a weekly wage of £300, or b 8% on a weekly wage of £400 85 © scanned with OKEN ScannerSTP Maths 9 nd the Pure 90 pl ions 23 to 28, fi od £9 jeater marke . 14 plus vaT Inqu 23 An electric he mixer marked £6 24 A food r 25 catutator marked £840 PN 25 26 Acar tyre coting £114 Pe vAT eva at 17% 27 A bathroom suite costin ears iamat 183% rt costines 28 A ticket for a cone" Income tax body ei at — : ale i" Income tax is deducted £0" Te yeir all rowances. US le pay ma rare re an 2 oe of theit earnings), while those with high a ‘at the basic rate (for examp’ to pay a certain amount of higher rate t (Rates of tax and allowances change Worked example > Piotr has a taxable income of £20000 per annum. hep basic rate is 20%? = 20% of £20000 20 x £20000 = £4000 “Assuming that the basic rate of income tax is 20% find the yearly tax on the following taxable incomes. 1 £5000 3 £6500 5 £6450 2 £8000 4 £12500 6 £8260 Find the yearly income tax due on a taxable income of 7 £10000 if the basic tax rate is 33% 8 £8000 if the basic tax rate is 25% 9 £16000 if the basic tax rate is 25% 10 £24 000 if the basic tax rate is 32% © scanned with OKEN Scanner4 Percentages Worked example — SSS -> Edgar Brooks earns £30 000 each year. If his tax free allowances amount to £10000, how much tax will he pay when the basic rate is 28%? ‘Taxable income = £30000 — £10000 = £20000 ‘Tax due = 23% of £20000 = 0.23 x £20000 = £4600 ise the following details to find the income tax due in each case. Name | Gross income | Allowances | Basic tax rate| 1 | Miss Deats £8000 £2000 20% 2 | Mr Evans £10000 £3000 23% 3 [Mrs Khan £15000 £3200 15% 4 |Mr Ames £9000 £2600 33% 5 [Miss Piatek | £20000 £4750 28% Worked example — —> Aproperty developer has an annual income of £240 000 and can claim allowances ¢ £30270. The basic rate of income tax is 20%, which is payable on the first £32010 his taxable income. A higher rate of 40% is due on the next £117 990 of his taxable income and a rate of 45% on any remaining taxable income. Find the total tax payable. Taxable income is £240 000 — £30270 = £209730 Tax due on £32010 at 20% = 0.20 x £32010 = £6402 Higher rate tax on next £117 990 at 40% = 0.40 x £117990 = £47196 Tax at the rate of 45% is due on £209 730 — £32010 — £117990 = £59730 Tax at 45% on £59730 = 0.45 x £59730 = £26 878.50 Total tax payable = £6402 + £47196 + £26878.50 = £80476.50 © scanned with OKEN Scannercaleulate the income tax payable first £30950 of taxable is charged at the 16 For each case in the table below, ifa lower rate of 20% is charged on the fir income and the remainder of the taxable income rate of 40% . ms £53 660 £12660 17 Repeat question 16 ifthe lower rate of tax is decreased from 20% to 18%, 18 For each case in the table below, if'a lower rate of 10% is charged on the first £2950 of taxable income, the basic rate is charged on the next £22 oo ad a remainder of the taxable income is taxed at the higher calculate the income tax payable aoos Stores regularly encourage customers to make purchases by reducing g price of an article is often called the discounted price. A price reduction o frequently expressed as a percentage of the price before the reducti Worked examples > During the January sales, a department store offers a disc prices. What is the discounted price of a dinner service If the discount is 10%, the discounted price is 90% of the m i.e, the purchase price of the dinner service is 90% of £84.50 = 0.9 x £84.50 ae . = £76.05 © scanned with OKEN Scannererate ow z na nn for each of th What would be the Taio sale, a sh Aiscounted 1 A dress marked £35 ywer marked £116 B Alawne B A pair of shoe arked £62 den tools marked £72.50 4 Aset of 6 Light fittings marked £82 each ment store offers a discount of 50% on the J their discounted price Ina sale, followin 6 A pair of curtains marked £76.50 | 7 Aleather football marked £32.30 A boy's jacket marked £28.60 "9 Agirl’s coat marked £64.50 Vo In order to clear a large quantity of wootlen goods, a shopkeeper puts them on sale at a diseount of 33%, Find the disenunted price of a ajumper marked £18.30 b_askirt marked £22.20 in Tshirts at £12.50 each and 11 A shopkeeper buys sold in asale at marks them up by 50%. Some are later discount of 85%. Does the shopkeeper gain oF Jose on these Tshirts and by how much” © Scanned with OKEN Scanner