(Ebook) Business Mathematics by Pekka Pulkkinen,

Holopainen ISBN 9789519892634, 951989263X Pdf Download

https://ebooknice.com/product/business-mathematics-22475872

★★★★★
4.7 out of 5.0 (38 reviews )

DOWNLOAD PDF

ebooknice.com
 (Ebook) Business Mathematics by Pekka Pulkkinen, Holopainen
ISBN 9789519892634, 951989263X Pdf Download

EBOOK

Available Formats

■ PDF eBook Study Guide Ebook

EXCLUSIVE 2025 EDUCATIONAL COLLECTION - LIMITED TIME

INSTANT DOWNLOAD VIEW LIBRARY

Here are some recommended products for you. Click the link to
download, or explore more at ebooknice.com

(Ebook) Biota Grow 2C gather 2C cook by Loucas, Jason; Viles,

James ISBN 9781459699816, 9781743365571, 9781925268492,
1459699815, 1743365578, 1925268497

https://ebooknice.com/product/biota-grow-2c-gather-2c-cook-6661374

(Ebook) Matematik 5000+ Kurs 2c Lärobok by Lena Alfredsson, Hans

Heikne, Sanna Bodemyr ISBN 9789127456600, 9127456609

https://ebooknice.com/product/matematik-5000-kurs-2c-larobok-23848312

(Ebook) SAT II Success MATH 1C and 2C 2002 (Peterson's SAT II

Success) by Peterson's ISBN 9780768906677, 0768906679

https://ebooknice.com/product/sat-ii-success-math-1c-and-2c-2002-peterson-
s-sat-ii-success-1722018

(Ebook) Master SAT II Math 1c and 2c 4th ed (Arco Master the SAT
Subject Test: Math Levels 1 & 2) by Arco ISBN 9780768923049,
0768923042

https://ebooknice.com/product/master-sat-ii-math-1c-and-2c-4th-ed-arco-
master-the-sat-subject-test-math-levels-1-2-2326094
(Ebook) Cambridge IGCSE and O Level History Workbook 2C - Depth
Study: the United States, 1919-41 2nd Edition by Benjamin
Harrison ISBN 9781398375147, 9781398375048, 1398375144,
1398375047
https://ebooknice.com/product/cambridge-igcse-and-o-level-history-
workbook-2c-depth-study-the-united-states-1919-41-2nd-edition-53538044

(Ebook) The Hacker Ethic: A Radical Approach to the Philosophy

of Business by Pekka Himanen, Manuel Castells, Linus Torvalds
ISBN 9780375758782, 037575878X

https://ebooknice.com/product/the-hacker-ethic-a-radical-approach-to-the-
philosophy-of-business-4452782

(Ebook) Business Mathematics and Statistics by Andy Francis ISBN

9781844801282, 1844801284

https://ebooknice.com/product/business-mathematics-and-statistics-43259798

(Ebook) Vagabond, Vol. 29 (29) by Inoue, Takehiko ISBN

9781421531489, 1421531488

https://ebooknice.com/product/vagabond-vol-29-29-37511002

(Ebook) Mathematics for Economics and Business by Ian Jacques

ISBN 9780273701958, 0273701959

https://ebooknice.com/product/mathematics-for-economics-and-
business-1308772
I Percentage Calculation
Everyone working in business life has to master the most common percentage
calculations. Therefore let us first briefly review the most common types of these
calculalions.

1.1 Basic Percentage Galculations

Percentages are used to describe for example a proportion, change, comparison, and
@ntent. Comparison and change are always calculated on the basis of the basic value.

E(AMPLES
1 How much does l5% account for of €250? 0.15'€250=€37.50
2 Add 15o/o to €250. 1.15.€250 =€287.50

3 Subtract 15% from €250. 0.85'€250 =€212.50

4 How many per cent does €51 account for of €340? €40 = 0.15 = 15%

5 How many per cent higher is the amount €1 80 than €125? #=1.44-44oÄ
6 How many per cent smaller is €80 than €125? #=0'&t=360/o
7 A price used to be €75 and is now €91.50. eeåto
= 1.22 = 22o/o
How many per cent has the price increased?

I A price used to be €65 and is now €57.20. es#o

= 0.88 + 12o/o
How many per cent has the price decreased?

9 A price increased by 8% and is now €145.80. t'i1#o

=€t35
Calculate the original price.

10 A price decreased by 5olo and is now €/7.90. cez

'31;30 =
Galculate the original price.

11 What is the prlce of which 22% accounts for €16.50? 'åEo =cts
Women:
12 There are 23 women and 27 men in a group. #a =o-46 > 46o/o
How many per cent do women and men account for?
Men:
åo =0 54 = 54o/o
1.2 Consecutive Percentage Changes

lf a figure changes by p%, the changed value is calculated by multiplying the original
figure by the coefficient (1 + fr ). lf p is positive, the coefficient is used to calculate a
higher value than the basic value, and if p is negative, the coefficient is used to calculate a
value that is smaller than the basic value.

ln p% = k = i i denotes the decimal form of the percentage. Thus the above coefiicient
can be expressed as follows: 1t + ;ft ) = (1 + i).

Consecutive percentage changes refer to calculations in which the value that has been
arrived at after the first change is changed further by some percentage. No limitations are
imposed on the number of changes in either directio-n.

lf the starting value isA and thefinal valueisL,then L =(1 +r1X1 + ir)"'(1 +i")'A-

lf all the changes are of the same size and in the same direction, then L = (1 + i)n ' A.

EXAMPLE {

Last year the price of a district ticket was increased by 6% and the price is now being
increased by 5%. Calculate the future price ofthe ticket assuming that the price
before the last-year increase was €85.

1.06 . 1.05. €85 = €94.60.

EXAMPLE 2

Consecutive price increases were 5o/o, 60/o, and 7a/o. How many per cent did the original
price increase?

1.05. 1.06. 1.O7' A= t.19091 A. The price increased by 19.1o/o.

EXAMPLE 3

On the average, the value of summer cottages increases by 6010 per year. Galculate the
estimated value of a summer cottage in five years assuming that its present vålue
is €75,000.

1.065. €-75,000 = €1ö0,367 . €100,000.

EXAMPLE 4

A price was raised by 8%. However, the increased price turned out to be too high and it
had to be reduced by 2.5o/o because of competition. Calculate the original price if that
the final pdce was €473.85.

d#,!.+åi= €450.
 EX.AMPLE 5

The price of a product is increased consecutively by p% ai a time. What value of p

doubles the price after ten increases?

3a (1 + DIo-A=2A 't * i=W i='*ll -t x 0.o72

The value of p is 7 ,2o/o. Check: 1.O721o = 2.OO
Ft
1.3 Percentage Point
F
le EXAMPLE 6

One year housing costs accounted for 17 .2o/o of the consumer costs and 17.0% in the
following year. Thus the decrease in the proportion of housing costs was 0.2 percentage
points.

Percentage points are used to indicate changes in the relative proportions. lf the
proportion of a quantity is first p% and later q%, ihe change is (q - p) perceniage points.
Correspondingly, if the proportion of a quantity is first p% and changes by q percentage
points, the new proportion is

p% t q %-points = 1p t q)o/o
depending on whether the change is an increase or a decrease.

EXAMPLE 7

ln a general election the total number of votes was 2,681,291 while party P got 194,846
Fal votes. ln the next election the total number of votes increased to 2,791,757 with the
number of votes given to party P increasing by 14.7o/o. By how many percentage points
and in what direction did pafi P's support change?

The number of votes given to Party P in the latter election: 1.147 ' 194,846 = 223,488.
Party P's support first: (194,846 I 2,681 ,291) = 0.073 = 7 3o/o
Party P's support later: (223,488 12,791,757) = 0.080 = 8.00/0.

lNe Party P's support increased: 8.0% - 7.3o/o = 0.7 percentage poini.
lE
EXAMPLE 8

A person's salary is €2,500 and the tax rate is 37o/o. He gets a rise of po/o, but at the same
time the tax rate rises by 2 percentage points. what value of p would yield the same
net pay as before the raise?

dt The net salary first: 0.63 €2,500 = €1,575

ld The new gross salary: (1 + r) ' €2,500
The new net salary: 0.61 ' (1 + t) - €2,500
The equation: 0.61 (1 + /) ' €2,500 = €1,575

(1 + 4 = 1.933 i.e. po/o x 3.3o/o The rise is 3.3%.

9
1.4 Percentages Are Known
ln some percentage calculations there are no figures given but only percentages. ln
principle any figures can then be used as the basic values. The most common figures
a, b, .. . or 11Oa, 100b, etc. -
Calculation tasks including only percentages are often illustrated by making use of
in which the starting point information and the changed information are written down.
Comparison or equations are then used to calculate the solution.

EXAMPLE 9

6l
One year the total exports of the forest industry were 10% smaller but the unit price
higher than in the previous year. How many per cent and in which direction had dE
value of the forest industry exports changed?

Price (€Junit) Quantity (units) Value of exports {€)

Before 100 a 100 b 10,000 aö
Now 106 a 90ö 9.540 ab

ffi = O.gS+ The value of exports decreased by 4.60/o.

EXAMPLE {O

A 10% decrease in alcohol prices increases the consumption of alcohol by q% At utH

value of g would the revenue remain the same?

Price (€/unit) Consumption (units) Revenue (€)

Before 100 a 100 b 10.000 ab
Now 90a X 10,000 ab

Equation: 90a 'x = 10,000ab

of whicix= 111.11b The increase would be 11.1%.

1.5 Applications

Income Taxation
Calculation tasks related to taxation are typical applications of percentage calculationa
Taxes may be direct or indirect taxes or tax-related payments. ln addition to the si+.
municipalities and parishes have the taxation right. Let us first study the taxation of
income, i.e. income from salaries, pensions, and social security payments.

Earned income is taxed by the state according to an income tax scale that is confirmed
annually.

10
 lncome tax brackets (€) Tax Tax on income
at lower limit l€) exceedinq lower limit (%)
12,000 - 15,400 8 10.5
15,400 - 20,500 365 15.0
20,500 - 32, 100 1,130 20.5
32,100 - 56,900 3,508 26.5
56,900 - 10,080 33.5
lncome tax scale used in the state taxation in 2005
(Source: The Tax Administration)

ln addition to the state tax, municipalities impose tax on earned income according to an
annually determined tax rate. Parishes also determine their church tax rates annually.

Tax-related payments made by wage earners are the employees' sickness insurance
contribution of 1.5o/0, employees' unemploymenl insurance contribution of 0.50%, and
employees' pension contribution of 4.6% (under 53 years old persons) or 5-g%o (53 years
old and older persons). All these figures relate to thd taxation of 2005.

]he employee is withheld tax on the earned income. The final tax of the year may be
different from the total amount paid at source because it is difficult to estimate all the
deductions in advance. lf the final amount of lax differs from the total amount of advance
tax, the taxpayer has to pay more or is paid back depending on whether the amount of the
withheld tax has been too high or too low.

Taxable income is calculated by subtracting the possible deductions from the earned
income. The deductions may be different in the state taxation and the municipal taxation.
Therefore also the taxable income is usually different.

EXAMPLE 11

ln 2005 the taxable income of a wage earner in the state taxation amounted to €2g,350.
Calculate the state income tax.

According to the above table the tax at the lower limit is € 1 ,130 when the earned income
amounts to €20,500 - 32,100 and the tax rate on the income exceeding the lower timil is
20.5%. Thus the state tax =
€1,130 + 0.205 .€(28,350 - 20,500) = €1,130 + 0.205. €7,850 =€2,739,25

EXAMPLE
'2
ln the municipal taxation, the taxable earned income of the wage earner in example 1 1
amounted to €27,750, The municipal income tax rate was .18.5%, church tax 1.75oÄ, and
sickness insurance cbntribution 1.5%. calculate the amount of the municipal income
tax and the total amount of income tax in the taxation of year 2005.

The municipal income tax rate, church tax rate, and sickness insurance contribution are
often combined to a total percentage: 18.5o/o + 1 .75o/o + 1 .So/o = 21 .71o/o.

Municipal lax = 0.2175 . €27,750 = €6,035.63

Municipal income tax €6,035.63

State income tax €2,739.25
€8,774.88

l1
The regional tax office determines a withholding tax rate for wage earners. This rate is
calculated on the basis of ihe person's estimated earned income. lf there are considerable
changes in the person's income during the year, the wage earner can ask the tax office to
calculate a new withholding tax rate for the rest of the year. The withholding tax rate is
calculated so that it equals to the final amount ofthe state tax and the municipal tax as
well as possible.

ln_addition to the advance payment based on the withholding tax rate, the employer must
withhold the employee's pension contribution and unemployment contribution'from the
salary. ln addition, the employer also withholds the trade union,s membership fee, if the
employee is a member of a trade union.

All the above payments are withheld also on fringe benefits, such as company car,
company telephone, and meal money.

EXAMPLE 13

The salary of a person who is under 53 years old is €2,73g.7o.ln addition to the salary, he
has a company telephone with a taxable value of €20 per month. The person is a meÅ6er
of a trade union, and the membership fee accounts for 1.1% of the total amount ofthe
sql3ry qnd the fringe benefit. Calculate the person,s net salary assuming that the
withholding tax rate is 34%.
€
Salary 2,738.70
Company telephone 20.00

Taxable income 2,758.70

Withheld tax 34.0o/o 937.95
Employee's pension contribution 4.60/o 126.90
Unemployment insurance contribution 0.5% 13.80
Trade union membership fee 1.'lo/o 30.35

The amount paid €1,649.70

Taxation of Capital Income

Gapital income includes interest income, dividends from companies listed on the stock
exchange, income from rents, profit share, yield on a life insurance policy, income derived
from processing land and soil, yield on property (called a capital gain), and other income
deemed as resulting from the fact that the taxpayer has had somå wealth and/or made an
investment of some kind.

The taxpayer is allowed to deduct the expenses caused by the acquisition of the capital
income. The net income is taxed according to the curreni tax rate. since the beginning of
2005 the tax rate on capital income has been 28o/o.

EXAMPLE 14

Ville has had €3,000 deposited on a 3.5% investment account for a calendar year. ln
addition to this investment, he sold his boat for €24,000 in the same year. When he had
bought the boat in the previous year, he had paid €22,500 for it. Whåt was the total

12
amount of Ville's capital income after paying the tax? The capital income tax rate is
28.
€
lnterest income (gross) 3.5% i €3,000 105.00
f ax 28o/o / €1 05,00 29.40

lnterest income (net) 75.60

Capital gain on ihe boat (€24,000 - €22,500) 1,500.00

Tax 28o/o I €1 ,5O0 420.OO
Capital gain (net) 1,080.00

Ville's capital income (net) €/5.60 + €1 ,080.00 = €1 ,1 55.60

The capital tax collected on interest income is called tax at source (source tax). lf the
capital is deposited in a bank, the bank collects the tax and pays ii io the state.

When the capital gain from the sale of property is calculated, either the real acquisition
cost orthe deemed acquisition cost is subtracted. The deemed acquisition cost is 20% of
the selling price if the asset was held for a shorter period than ten years. lf the asset has
been held for at least ten years, the deemed acquisition cost is 40%. For assets received
as an inheritance or gift, the deemed acquisition cost is the value determined by the tax
office.

When the tax office determines the capital gain, the real or the deemed acquisition cost is
used depending on which is more favourable to the taxpayer.

The seller need not pay tax on the sale of the principal place of residence, if he has
owned it and lived in it for at least two years without interruptions.

EXAMPLE 15

Päivi inherited a summer cottage from her grandmother in 1993 and the inheritance tax
value determined by the tax authorities was F|M120,000. How much did Päivi have to
pay tax on the capital gain after she had sold the cottage for 93,000 euros in 2005?

As the inheritance tax is determined in Finnmarks, it has to be changed into Euros by

dividing the amount by 5.94573.

lnheritance tax value = acquisition cost = tiSi# = €20,183.

Deemed acquisition cost: 0.4 . €93,000 = €37 ,2OO.

The sales profit is calculated on the basis of the deemed acquisition cost, as it is more
favourable to the taxpayer.

Sales profit = €93,000 - €37,200 = €55,800.

Capital income tax= 0.28 €55,800 = €15,624.

13
lnheritance and Gift Taxation
The principles followed in inheritance and gift taxation are the following (source: The Tax
Administration) :

Tax on inheritances is imposed on property, if the deceased person or the heir or the
receiver of bequest is resident of Finland at the moment of death. The tax is levied on the
basis of the deed of inventory or a tax return. The deed of inventory must be executed
within three months from the death.

The inheritance tax is based on the market value of the property on the date of death. The
market value means the probable selling price of the property. Tax is imposed on a
property worth €3,400 or more.

Certain costs, such as funeral and inventory proceedings costs are deductible. The
spouse deduction is €6,800 and deduction granted to minor children is €3,400.

The following table shows the tax rates based on the property value and the relationships
as from 'f January 2002:

Taxable amount {€l Tax at the lower limit (, Tax on the exceedinq part (%)
3,400 - 17,000 85 10
17,000 - 50,000 1,445 13
50,000 - 5.735 '16

ln tax caiegory I the tax is in accordance with the table.

ln tax category ll the tax is multiplied by two.
ln tax category lll the tax is multiplied by three.

The recipients are divided into three categories:

I spouse, children and their direct heirs, parents
siblings of the deceased person and lheir descendants
lll other relationships.

The value ofthe taxable inheritance is determined in hundreds of Euros.

Gift tax follows the same principles - with small deviations and amendments - as tax on
inheritance.

The gift tax return or the advance inheritance tax retum is made and signed by the
recipient. lf the recipient is a minor child, the guardian is responsible for the tax return.
The gift tax return is to be submitted within three months from the receipt of the gift..The
main principle is that only the value determined in the gift taxation can be deducted from
the selling price as the acquisition cost when the possible capital gain is computed later
on. However, for example if the gift consists of shares of companies listed in the stock
exchange worth less than €3,400, the taxable value may be deductible from the selling
price, even though gift tax has not been levied.

lf the value of the property is below €3,400, no inheritance tax is due. lf the property is
worth more, the excess will be taxable. A gift tax return must always be submitted iithe
value of the property is worth €3,400 or more. A gift tax return must also be submitted if
the total value of the gifts received from the same donor within three years amounts to
€3,400. When making a deal, a gift is received, if the price accounts for three quarters or
less of the market price of the property.

t4
The value of the gift is the market price at the moment of donation. The market price
means the probable selling price of the property.

The gift tax rates and the tax categories are the same as in the inheritance taxation and
also the value of the taxable gift is determined in hundreds of Euros.

EXAMPLE 16

A grandfather gives his grandchild a gift of €5,000 on the grandchild's graduation day.
Whät is tbe amount of the tax that the grandchild must pay on the gift received?

A grandchild pays tax according to the first category.

Gift tax = €85 + 0.10 €(5,000 - 3,400) = f245.

EXAMPLE 17

A childless widower bequeathed his property to his son-in-law. What is the tax that the
son-in-law had to pay on the inheritance assuming that the market value was
€39,200?

The son-in-law pays tax according to the second category.

lnheritance tax = 2' €11,445 + 0. 1 3' (39,200 - 1 7,000)l = €8,662.

EXAMPLE 18

An elderly woman who did not have own children bequeathed her flat to the Martha
Association. After the woman had died the Association asked the local tax office for an
advance decision on the inheritance tax. ln accordance with the decision the market value
on the date of death was €95,000 and the inheritance tax amounted to €38,805. The
Association considered the tax too high. Check if the decision on the amount of the tax
is correct.

The Martha Association pays tax according to the third category.

3 €[5,735 + 0.16 (95,000 - 50,000)] = €38,805. The tax office had made the right
decision.

EXAMPLE 19

A father sold his son a real estate worth €250,000 at the price of €150,000. What was the
amount of the gift tax that the son had to pay?

The son has to pay a gifi tax if the selling price accounts for at the most three quarters
(75%) of the market price.

0.75 .€250,000 = €187,500. As the purchase price was €150,000, the son has to pay gift
tax on the difference beiween the market price and the selling price:

€250,000 - €150,000 = €100,000. The tax is paid according to the first category.
Gift tax = €5,735 + 0.16 €(100,000 - 50,000) = €13,735.

15
Value-Added Tax
For example value-added tax, excise duty, and car tax are indirect taxes. The most
important of these is the value-added tåx.

Value-added tax (VAT) is a general tax on consumption levied on the commercial

selling of goods and services in Finland. An entrepreneur registered as VAT-liable
files for a Monthly Tax Return to the regional tax office. The standard rate of VAT is
22Vtln addition, two reduced rates are in use: 17%, which is applied to food and
animal feed, and 8olo, which is applied e.g. to books, drugs, cinema tickets, passenger
transportation and accommodation services, culture and entertainment occasions,
and TV licenses.

Value added tax (VAT) is calculated on the total charge for goods or services, excluding
the amount of tax. When the amount of VAT is added to the price in question the (final)
selling price is anived at.

EXAMPLE 20

Matti bought foodstuffs for €87.50. a) What is the amount of value added tax included
in the total amount? b) How many per cent does the value added tax account for of
the selling price?

a) The VAT on the foodstuffs accounts for 17o/o ot the selling price without VAT, which is
the basic value in the calculation.

Selling price without VAT 1O0o/o

VAT 170/"
Selling price €87,50 1170/o

VAT = # €87 .5 = €12.71 .

b) We calculate how many per @nt €12.71 accounts for of €87.50.

å#=0.1453=14.530Ä
Check: 0.1453 '€87.50 = €'12,71.

The solution of example b can be generalised.

lf the VAT is '17% on the selling price without VAT, it accounts for
. 1 00% = 14.53% of the final price.
#

For more information on both direct and indirect taxation, see the web site of the Tax
Administration www.vero.fi. ln the web site there is also a handy tax percentage
calculation program which enables you to calculate if you need to change your withholding
tax rate when your income or deductions have changed considerably for example
because of changes in eamed income. The tax calculation program can be used to
estimate the need to pay taxes in the most common cases, for example when earning
income, receiving various unemployment benefrts, study grants, or pension.

Note More information on the value added tax in Chapter 8 on Pricing (see p. 156).

16
Exercises
About 15 million hectares of the total area of tropical rain forests covering
approximately 2 billion hectares disappear every year. How many per cent do the
annually disappearing forests account for of the total area?

ln Finland the total amount of waste was 1 19,286 million kilos in 2003. Altogether
40,981 million kilos of this amount was exploited material use and 5,730 million kilos
was exploited energy use. (Sourcei Statsfics Finland-\
ål Hori, many per öånt did ihe exploited energy use account for of the total amount of
the waste?
b) How many per cent of the total amount of the waste was exploited?
3 ln Finland the consumption of renewable sources of energy amounted to 333,616 TJ
in 2OO3 and lo 372,447 TJ in 2OO4 (sourcej Sfaflstrbs Finlanfi'
a) How many per cent did the consumption of renewable sources of energy increase
from 2003 lo 20042
b) ln 2005 an aftempt was made to reduce the consumption of renewåble sources of
energy.Howmanypercentshouldtheconsumptionbedecreasedfromthelevel
of 2004 in order to achieve the level of 2OO3?

The distribution of the total energy consumption by energy source was the following
(1,OOO toe): oil 8,949, nuclear energy 5,684, coal 5,263, gas 3,893, forest industry
waste liquid 3,752, and other 7,973. How many per cent did each of them accouni for
of the total consumption? (Source: Energy Review 4/2005-)

ln 2003 the greenhouse emissions by source (million tons of co 2) were the following:
Energy emissions 73.0
Agriculture 5.4
lndustrial processes 3.4
Waste handling 2.7
Other 1.0
(Source: Stat.st'cs Finland.)
How many per cent did the different sources account for of the total emissions?

6 ln 2002 the environmental protection expenditure in Finland amounted to €1 ,031.7

million and a year later to €1,089.2 million (source: Statistics Finland).
a) How many per cent did the environmental protection expenditure increase from 2002
to 2003?
b) lf the absolute growth of the environmental protection expenditure in 2004 had been
as high as in th-e previous year, how high would the environmental proteclion
expenditure have been in 2004?
c) lf t'he relative growth of the environmental protection expenditure in 2004 had been as
high as in the previous year, how high would the environmental protection expenditure
have been in 2OM?

Every year about 150,000 tonnes of sulphur is driven to Finland from other countries.
tn aOiition, 25% of the Finnish sulphur emissions amounting to 100,000 tonnes is
spread on Finnish areas. How many per cent do the suJphur emissions originating
from Finland account for of the total sulphur emissions?

A person's income tax amounted to €17,621 . What was his taxable income assuming
that the tax rate was 43.8%?

17
 A dealer promised to allow a 15olo discount on a digital camera. By mistake he added
the discount to the price and got the amount of €368. What is the correct price in
which the discount has been taken into account?

10 A, B, and C share a prize that they have been awarded so that A gets 28%, B gets
39%, and C gets €462. Calculate each person's share.

11 a) The price of a product was increased by 9olo and it is now €1 19.90. What was the
original price?
b) The price of a product was lncreased by 16%, i.e. by €62- Calculate the new price.
c) The price of a product was reduced by 60lo and it is now €112.80. What was the
original price?

12 A watch was sold at a discount of 25%. What was the reduced price of the watch,
when the discount was €18.50?

13 A 30% discount is allowed on a ring that is sold at the price of €182. How many euros
was the discount?

14 The price of a product is reduced by 11%. How many per cent should the reduced
price be increased in order to anive at the original price?

15 How many per cent would the price of €120 have to be increased so thät a 15%
discount could be allowed on the new price, if the reduced price should be €127 .5O?

'16 One year a factory was working at the capacity rale of 760/o and in the following year at
88%. What was the capacity of the factory when the output increased by 19,920 units?

17 The total costs of a factory consist of fixed costs and variable costs. When the factory
is working at the capacity rate of 85%, the variable costs amount to €53,125. What are
the total costs, if the fixed costs amount to €12,500 and the factory is working at full
capacity?

'18 A customer places an order for 1 ,600 pieces of a certain type of car tyres with a
factory. According to the statistics compiled by the factory, on the average 3olo of their
tyres are defective. How many tyres would have to be made for the order of 1,600
pieces to make sure that they will probably be able to supply only fault-free tyres to the
customer?

19 At the beginning of 2004 the number of lnternet connections was 2,349,000 and a
year later the number was 2,573,000 (source: Stattlsflcs Finland).
a) lf the absolute number of lnternet connections increases by the same amount
every year, how many lnternet connections will there be at the beginning ol 2Q10?
b) lf the relative number of lnternet connections increases by the same amount every
year, how many lnternet connections will there be at the beginning of 2010?

20 The purchase price of a car was €26,900. A year later its price was estimated to be
€22,500.
a) How many per cent did the value of the car depreciate in the year?
b) lf the relative decrease in the price of the car is the same also in the followig
years, what is the estimated p.ice of the car be then?

21 Youaskareal estate agent to sell yourflat. The real estate agent charges a
commission of 4o/o on the selling price paid by the client. lf you want to obtain a rH
price of €120,000 after paying the commission, what will the selling price have to be?

18
22 You want to buy a hoUSe through a real estate agent. The real estate agent charges
3% and the traÅsfer tax to be påid to ttre state is 4olo. What is the selling price set by
the seller, if you have to pay €165,850 including all the expenses?

23 The value added tax of 8% is added to the selling price of a book without VAT.
a) How high is the value added tax in Euros if the selling price of the book is €49.90
including VAT?
b) What is'ihe selling price including VAT, if the VAT amounts to € 3'41?

24 when making salty cucumbers so much waier is added to 900 grams of salt that the
desirable sa[contänt of 15% is achieved. What is the amount of water to be added?

25 Peroxide is used to disinfect the well of a summer cottage. For that purpose the
owners buy 750 ml of 30% peroxide at the chemist's. How much water will have to be
added to this amount if the required peroxide content is 5%?

26 The price of a product was first increased by 12o/o and then by 5%, i'e' by €252O'
a) Calculate the final Price.
Oj now many per cent had the price increased altogether?

27 A computer depreciates each year by 30% at the beginning of each year. calculate
the vaiue of the computer in three years, when the purchase price is €1'000'

28 A motorboat depreciates by 15o/o aleat-

a) What is the selling price of the boat in two years, if the purchase price is €5,600?
bi What was ttre puåhase price of the motorboat two years ago, if its selling price is
now €4,335?

29 A person bought a three-year old car for €18,225. The salesperson told that the car
had depreciatäd each yeår by 1O%. What had the original price of the car been?

30 Political party P was given 60,000 votes, which accounted for 2% of all the votes in
that eteaion. ln the following election the number of party P's votes remained the
same, but in that election the number of votes decreased by 5olo on the previous . . .
election. How many percentage points did the support of party P change and in which
direction did it change?

31 one year the turnover of a company amounted to €t2.5 million with the total marketing
amounting to €0.5 million. ln the following year the tumover increased by
"*p"äditrte
4lo and the marketing expenditure increased by 20%. How many percentage points
and in which direction did the proportion of the marketing expenditure change?

32 ln 2003 the total number of polytechnic students was 129,875 and the number of
polytechnic graduates was 20,588. ln the following year the colresponding figures
weie 131 ,919 and 20,821 respectively. (Source: Statistics Finland')
a)Howmanypercentdidthenumberofpo|ytechnicgraduatesaccountforofthe
total number of polytechnic students?
b) How many percentage points and in which direction was the change from 2003 to
2004?

33 According to research findingS, a 5% increase in alcohol prices causes a decrease of

2% in coisumption. How many per cent and in which direction did the sales retums
change?

19
34 The number of theatre visitors decreases by 15o/o. How many per cent should the
theatre tickets be increased, if the purpos€ is a) to keep the sales retums at the same
level as before, b) to increase the sales retums by 20Å?

35 The rent for a flat is 10% higherthan the maintenance charge. How many per cent
should the rent be increased, if the purpose is to make it 11% higher than the
maintenance charge assuming that the maintenance charge is increased by 'l2o/o?

36 The advertising costs used to account for 6% of the total costs. The other costs
increase by 5%. How many per cent should the advertising costs be decreased, if the
increase in the total costs is allowed to be only 2% and it is possible to reduce only the
advertising costs?

37 The raw material costs account for a quarter of the manufacturing costs. The raw
material price increases by 20Vo. How many per cent should the other costs be
decreased, if the purpose is a) to keep the manufacturing costs the same as before,
b) to allow the manufacturing costs to increase by 5olo?

38 The total costs of building a summer cottage were estimated to be €75,000. The
building materials were estimated to amount to €50,000 and the wages to €15,000.
The rest of the costs were accounted for by the other costs. The building projec{
tumed out to be 20% more expensive than the estimated costs. How many
percentage points did the proportion ofthe other costs change, if the raw material
costs were 12% higher than estimated and the wages accounted for 85olo of the
estimated amount?

39 A family is planning to buy a real estate for €150,000. The transfer tax is 4ol0. They
have now €35,000 and their bank has promised to grant a loan accounting for 80o/o ot
the selling price of the real estate. The bank charges for the loan account for 1.5% of
lhe loan amount.
a) ls this family able to finance the planned purchase of the real estate?
b) What would the maximum price of the real estate be which the family could
afford to buy on the conditions mentioned above?

40 ln road traffic, the limit of gross drunken driving is 1.2 per

mil. The alcohol content of
blood is approximated in terms of per mil so that the consumed amount of alcohol is
divided by 0.75 x weight for men and by 0.66 x weight for women. How many 4-
centilitre portions of 40% alcohol must a person have drunk to reach that limit
assuming that the person is a) a man whose weight is 70 kilos and b) a woman who
weighs 60 kilos? lt is assumed that a litre of alcohol weighs one kilogram.

41 The value of a car depreciates by 10% a year, How many years will it take before the
writtendown value of the car is for the first time smaller than a) haf of the purchase
price, b) the depreciation of the car in the first year?

42 A decision was made in a company that used to have a 4o-hour working week to
shorten the working hours by 5%- How many per cent would the personnel's working
efficiency have to increase to enable the company to produce the same output?

43 Wage eamers'taxable income in the state taxation in 2005 amounted to a) €13,330,

b) €18,700, c) €45,620- Calculate the amounts of the state income tax.

20
 ln 2005, a wage earne/s taxable income in the state taxation was €19,900 and
€18,120 in the municipal taxation. The municipal tax rate in the taxpaye/s
municipality was 18.2%, the church tax rate \ ras 1 .5%, and the sickness
insurance contribution accounted for 1.5%. Calculate the amount of the wage
earner's total income tax in the taxation of 2005.

A person's taxable income in both the state taxation and the municipal taxation
in 2005 was a)€12,200, b) €16,350, c) €38,650. The total percentage ofthe
municipal tax, church tax, and sickness insurance contribution is 21.25o/o.
Calculate the total amount of the taxable income.

46 The following information is included in a person's tax card of the year 2005:

Tax information on the main occupatbn:

Basic % 35 Additional % 48 Limit €36,000/year €3,000/month

According to the information, the person is withheld 35% of the gross salary
per month up to the maximum of €3,000 per month. lf the gross income
exceeds €3,000, the withholding rate is 48olo on the amount exceeding €3,000.

The person's salary is €2,980. Calculate his net salary if he is a member of a

trade union and the trade union fee accounts for 1% of the salary and, in
addition, the employee's pension contribution accounts for 4.6% and the
unemployment insurance contribution lor O.25o/o.

47 Calculate the net income of the person in task 46 if his salary is €3,100 and he
has company car with a taxable value of €426 per month.

48 ln 2005 a person's salary was €2,500 every month. His withholding rate was
30% and the determined taxable annual income in the state taxation of 2005
was €29,100 and in the municipal taxation €28,800. How much will he have to
pay additional tax after the final calculation of the tax if his municipal tax,
church tax, and sickness insurance contribution account for 21.5% of the
taxable income?

49 Calculate the amount of capital income tax in the following cases assuming
that the tax rate is 28.
Capital gain Costs of gaining capilal income
a) €1,350
b) €24,600 €5,600
c) €53.600 €25.2N
The costs of gaining capital income are deducted from the capital income before the
tax is determined.

50 ln 2005 Merja had interest income of €256.50, income of €2,640 (gross) from renting a
flat that she had invested in, and sales profits of€3,200, The maintenance charge of
the flat was €105 per month and the other costs amounted to €20 per month. What
was the amount of Merja's capital income tax and what was her net capital income in
2005?

51 Erkki made an investment of €46,000 in a flat. He sold the flat after four years at the
selling price of €62,000. What was the amount of tax on the capital gain assuming that
the tax rate was 28?

52 ln 1992 an investor bought a real estate for F1M420,000. He sold the real estate in
2005 after a renovation that had cost €125,000. What was the amount of tax on the

21
 capital gain that the investor had to pay when the renovation costs are deductible from
the selling price?

A person inherited €22,000 a) from his father, b) from his uncle. What was the amount
of the inheritance tax on these inheritances?

54 After her spouse had died, the widow inherited a property of €37,500. What was the
amount of the inheritance tax when the spouse is granted a deduction of €6,800?

55 Four grown-up sons inherited all the assets of their father who had died. The assets
comprised a flat worth €120,000, bank deposits of €15,210, and other property worth
€7,000.
a) What the amount of the inheritance tax that they had to pay altogether?
b) What was the amount of the inheritance of each of the sons after the inheritance
tax had been paid?

56 Paavo inherited from his grandmother assets worth €105,000, but he decided to give
up the inheritance in favour of his two grown-up children.
a) What the amount of the inheritance tax that Paavo's children had to pay
altogether?
b) How much less did Paavo's children pay inheritance tax altogether than Paavo
would have had to pay?

57 A father and a mother sold their son a summer cottage at the price of €45,000. The
regional tax office determined the market price of €75,000. What was the amount of
the gift tax that their son had to pay on the purchase of the summer cottage and how
much did he pay for the summer cottage when the tax is taken into account?

58 An entrepreneur sold 1,500 shares a) to his son, b) to his cousin at the price of
€10,000. On the selling date the market price of the shares was €1 1 .20 each. What
was the amount of the gift tax?

59 A childless couple bequeathed their flat to the local entrepreneurs' assoclation. After
the entrepreneur had died the regional tax office determined the market price at
€150,000. The entrepreneurs' association paid the inheritance tax levied by the tax
office. After that the association sold the flat at the price of €172,000. What was the
total amount obtained by the entrepreneurs' association from selling the flat?

60 Parents gave their daughter a gift of €5,000 three times so that the interval of the gns
was over three years. \Nhat was the total amount of the gift tax that the daughter had
to pay on the gifts?

61 The selling price of a DVD player is €215. a) What is the amount of value added tax
that is included in the price? B) How many per cent does the value added tax account
for of the selling price?

62 The price of a book is €36.50. a) What is the amount of value added tax included in
the price? B) How many per cent does the value added tax account for of the selling
price?

63 The selling price of a product

is a) €4.50, b) €29,90, c) €398. Calculate the amount of
value added tax assuming that the VAT rale is 22o/o.

64 Place the percentages 7o/o, 13o/o,20Yo,27o/o, 33o/o, 40o/o, 47%, 53o/o, and 60% in a 3x3
grid so that the amount of all rows and columns in the grid is 100%.

22
2 lndex Numbers

2.1 Concepts

lndex numbers are actually percentages, although there is no per cent sign after the
numbers. These percentages are called index numbers or index points. They are used
to follow for example changes in prices, wages as well as economic activity in general.

lndex numbers are often related to time series, i.e. quantities changing over periods of
time. Constructing an index is easy. One of the figures in the series is chosen as the base
value and it is marked 100. The other index numbers are then calculated as percentages
of the base value. However, in practice many indexes are group indexes, for example the
Consumer Price lndex, Wholesale Price lndex, and Building Cost lndex. Group indexes
are generally affected by several different - even hundreds of - factors.

There are certain established practices in the marking of the index numbers. lf for
example year 2005 is chosen as the base year, then 2005 = 100. The time may also be
indicated more exactly: 2005 : 1 = 100 or 2005 I = 100, which indicates that the base
value is January 2005. The index numbers are usually given as integers or with one
decimal place.

lndex numbers are used mainly to show the direction and the amount of relative changes.
For example the Consumer Price lndex number 107.8 indicates that consumer prices
have risen by 7 .8o/o in relation to the base year. Measuring the change of two consecutive
index numbers is not, however, usually possible without calculation.

2.2 Price Relative and Quantity Relative

The simplest index number is constructed from two consecutive values, which are related
to the same phenomenon. The successive values are calculated as percentages ofthe
value that has been selected as the base value. When the. examined values reflect
changes in prices, the index number is refened to as a price relative. Correspondingly, if
the values indicate a change in quantity or volume, the index number is refened to a
quantity relative.

The price relative and the quantity relative are determined as follows:

1"(P)=rr'166
po

I,(Q)=L'no
eo

po = price at the base period of time

p, = price at the comparison period of time
go = quantity at the base period of time
g, = quantity at the comparison period of time

Calculating price and quantity relatives may be particularly useful when absolute changes
seem to appear small. Nevertheless, relative changes may prove to be surprisingly big.

23
 EXAMPLE 1

The table below (source; Statistics Finland) gives information on the numbers of doctors,
nurses and assistant nurses in 1995-2003. Calculate the index numbers with 1995 as
the base year.

Year 1995 2000 2001 2092 2003

Doctors 14,141 15,905 16,247 16,272 16,443
Nurses 49,141 59,053 59,927 60,894 61,265
Assistant nurses 36,382 30,210 29,275 28,342 27 ,239

For each group ihe number is divided by the index number of year 1995, which was
selected as the base year, and then ihe results are multiplied by a hundred. We get the
table:
Year 1995 2000 2001 2002 2003
Doctors 100.0 112.5 114.5 1 15.1 116.3

Nurses 100.0 120.2 12'l .9 123.9 124.7

Assistant nurses 100.0 83.0 80.s 77 .9 74.9

The above table shows for example that the number of doctors increased by 16_3%, ihe
number of nurses increased by 24.7o/o, and the number of assistant nurses decreased by
25.1 % within this period of time.

2.3 Group lndex

When we try to follow the general development of for example electronic products, we are
bound to encounter many difficulties. The price relatives can first be calculated separately
for example for digital cameras, laptop computers, and mobile phones. lf ihe price of
every electronic product in relative terms has risen as much during the same period of
time, the price relative of one product reflects the price development of the whole product
group. However, this is seldom the case.

Naturally it would be possible to calculate the means of the price relatives of different
products, but then it is assumed that each product would have a similar bearing on the
whole product group. lf this is not the case, the price relative of each product must be
assigned a weight. Then the problem is how the weights should be selected.

The group index is öomputed as a kind of weighted mean. The most common index is
Laspeyres Price lndex, in which the quantities of the base yeat are used as the weights.
The Laspeyres Price lndex is determined as follows:

lP,,'eo,
1,, =:--.100
LPo''40'

ä
po, = price of the i product at the base period of time
pn, = price of the i tt product at the comparison period of time
qor = quantity of the product at the base period of time

24
Many of the indexes used in practice, for example the price index and the quantity index, are
Laspeyres-type indexes, but the weights are more complicated than the ones used above.
Consumed or produced quantities or financial significance may be used as weights.

EXAiIPLE 2

Based on the table below, let us examine the development in the prices of electronic
products.

Producl Year I Yeat 2

p0 q0 p1
Digitel camera 261 83 295
Laptop computer 1,267 175 1,146
Mobile phone 172 244 149

Use the Laspeyres lndex to calculate the average change of the prices of the
products in the above table from year 1 to year 2 as well as the direction of the
change.

+ I 49. 284
I= 295. 83 + 1,146..117 5 100 = 91.5
261. 83 + 1,267 75 284
+ 17 2'

Solution: The average decrease in the prices is 8.5%.

Statistics Finland computes the majority of the index numbers that are published in
Finland. Most of them are revised on average every fwe years. The revision may mean
that including new items, replacing old items by new ones or deleting them. lt may also
mean revised weights.

Consumer Price lndex (2000=100) 2000 2001 2002 2003 2004

Total index 100.0 102.6 104.2 105.1 105.3 106.2

Foodstuffs and non-alcoholic beverages 100.0 104.4 107 .4 108.1 108.9 109.2

Alcoholic beverages and tobacco 100.0 10t.8 103_6 104.7 93.5 91.8

Clothing and footwear 100.0 100.9 100_0 99.8 100.0 99.4

Housing, water, electricity, gas, and other fuels 't 00.0 103_0 103.4 104.8 106.2 109.2

Furnshings, household equipment, and routine 105.6

100.0 102.4 103.9 104.4 105.0
maintenance of the house

Health 100.0 1m.3 107.3 110.7 1 13.0 115.2

Transport 100.0 '100.9 102.1 102.O 103.0 105.7

Communicetion 100.0 99.8 100.4 97.0 88_9 78.8

Recreation and culture 100.0 103.1 105.3 106.5 108.3 '108.0

Education 100.0 103.3 106.6 113.0 1'19.2 123.9

Catering and hotels 100.0 102.3 1M.7 107.7 108.8 110.8

Miscelleneous goods and services 100.0 10/..4 105.5 106.3 108.1 109.1
(Source: Statistrbs

25
The most important index conceming all Finnish citizens is the Consumer Price lndex. lt
monitors the development ofthe prices paid by Finnish households for goods and
services bought in Finland. The Laspeyres lndex is used to calculate the Consumer Price
lndex with the weight structure being based on the information obtained by national
accounting on the value of private consumption. The prices of the products in the
commodity basket are assigned weights based on their consumption.

The interviewers of Statistics Finland collect information on 50,000 prices of about 500
commodities from approximately 3,000 outlets and 100 places in different parts of Finland
in the middle of every month. The weights used in the Consumer Price lndex are from the
base year.

"i4

\Ä
v\ Ä /\A\
VV
tv
^

-1

Annual change in consumer prices 1/2001 - 1212005 (source: Statistics Finland).

ln Finland consumer price changes have been followed since 1921, first by means ofthe
Gost of Living lndex and nowadays by means of the Consumer Price lndex. The Cost of
Living lndex numbers are still calculated, although it has been replaced by the Consumer
Price lndex-

1700

1500

1300

1100

s00

700

500

300

100
1951 1361 1971 1CB1 1gg1 ?0 01

Annual means 1951-2005 in the Cost of Living lndex 1951:10 = 100 (source: Statistics Finlandr.

The lndexes are frequently divided into three categories: price, quantity, and cost
indexes. The Wholesale Price lndex monitors the change in the prices of raw materials,
industrial goods, and the purchase prices of both consumer and investment goods. The

26
Gonstruction Cost lndex monitors the development of consfuction costs' The
lndustrial Producer Price tndex monitors the change in the prices of goods made by
Finnish industry ex works. The Dom6tic Basic Price lndex monitors the price of
developm€nt of the produc-ts oonEum€d in Flnland when the prcduc'b arc launched on
the markel. The above lndexeg can be followed for example ln tho gtrUldctl Ye.rbook
of Flnland. On the web pagee ol Statleticc Finland www.stat.fi you can find the mod
@mmonly used index numbers. Some industrial organizations and hade joumals also
publish information on index numbers on a regular basis.

lndex numb€F lndex Change (%) Ghange (%)

(2000=100) Numbet 11t200,5-7?lm05 - 12t2005
12r20lJ4
1zt'xw3
lndustrial Producer Price lndex, 96.'l 0.0 3.6
total
Export Pdce lndex 89_5 0,3 3.8

lmport Price lndex 106.5 0.5 9.9

Domestic Market Basic Price lndex 105.5 0.2 5.3

Wholesale Price lndex 103.4 o.2 5.2

Monthly and annual changes in the Price lndexes in December 2005 (source: Statistics Finland)

2.4 Changing the Base Period of Time

The base period of time of the ready-made index numbers may have to be changed for
example to make it possible to compare two different index series with each other. The
change is made so that each original index number is divided by the index number of
the new period of time and the resuh is multiplied by a hundred. The results are usually
indicated with the same accuracy as the original values.

EXAMPLE 3

The purpose is to compare how the Consumer Price lndex and the Construc{ion Cost
lndex developed at the beginning of the 2000s.

Ycar 2{X}0 2001 mo? 2003 2004

Consumer Price lndex (2000=100) 100.0 102.6 1M.2 105.1 105.3
Construction Cost lndex (1995=100) 104.2 111.4 at12.2 114.3 117.1

The base year of the Construction Cost lndex is changed so that the new base year will
be the year 2000.

The values of the Construc{ion Cost lndex are divided by the index of year 2000 and the
results are multiplied by a hundred. The results are then the following:

Year 21x,0 2001 200'2 2003 2lm,1

Consumer Price lndex (2000=100) 100.0 102.6 1M.2 105.1 105.3
Construction Cost lndex (revised, 100.0 103.0 103.7 't05.6 108.2
2000=100)
For comparison, the result can be presented also graphically.

27
 115

113

111

10s

107

105
'103

101

99

s7
95
2000 2001 ?oo2 2003 2004 2005
2M0=1 00
Kuluttajahintaindeksi 2000=1 0D
-Rakennuskustannusindeksi
Construction Cost lndex 2000=100
Consumer Price lndex 2000=100 (source: Statistics Finland).

2.5 The Use of lndex Numbers

lndex numbers are used to keep for example wages, pensions, and insurance contributions
at an up{o-date level. They are also used for example to measure real changes in wages.
Collective bargaining agreements may include an index clause: if the index rises above the
limit set in advance, the wages, pensions, etc. are raised as agreed.

EXAMPLE 4

The amount of an insurance covering a summer cottage was tied to the Construction Cost
lndex. The insurance amount had been €41,315, when the Construction Cost lndex was
'1 17.6. What was the insurance amount a year later when the Construction Cost

lndex was 119.1?

The increase in the index number is calculated first and the insurance amount is changed
accordingly.
Il9'l
=1.012755
117.6

The new insurance amount: 1.012755 €41,315 = €41,842

A proportion may also be used to determine the new insurance amount. The amounts of
insurance are proportional in the same way as the conesponding index numbers:
€41'3 l5
€x -ll7 '6 . in which € x = €41,842
119.1

28
EXAII/IPLE 5

A person's net salary was €1,519 and the Consumer Price lndex was 105'3' A year later
the consumer Price lndex had risen to 106.2 and the net salary to €1552. How many
percent and in which direction had the person's real earnings changed?

First we calculate what the net salary would have been at the later point' if it had followed
exactly the change in the index number.
lo6 2.at.stg=ei.slz
105.3

since the real net salary is higherthan the salary ihat was changed in proportion to the
index, there has been real growth.
€1'552
=t.ot3 The real growth rate of ihe earnings is about 1.3%.
€r,s32

EXAMPLE 6

The consumer Price lndex rose from 105.3 to 107.8. How many per cent and in which
direction did the consumer's living standard change, if his net salary a) did not
increase, b) increased bY 3.5%?
proportion
Let the net salary before the rise be a euros. lf the net salary had increased in
to the index, its amount later would have been
rol'8.ea-€7.0237a.
105.3

a) Since the real net salary did not increase at all, the standard of living declined.
€a
I/
€1.0237 a
0.977 - 1= -0.023. The standard of living deceased by 2.3 %, which means that with the
same amount of money the consumer can buy fewer goods and services than before. The
-=0.9 power of money has decreased
purchasing

b) The net salary increased by 3.5% to €1.035 a €.

€1.035o The standard of living rose by 1-1 %.

=r.011 1.011 - 1 = 0.01 1 .
€1.0237 a

The above calculatibri gives a result that is mathematically correct for the change in the
living standard, i.e. the purchasing power in monetary {erms. However, it is common that a
prices, which leads to
fayiise ls fottowed by an increaså in prices. A general increase in
depreciation of money, is called inflation'

The consumer Price lndex is generally used to measure the rate of inflation in many
different fields of economy. Th! rate of inflation is measured as a percentage of a 12-
month change of the Consumer Price lndex. In example 6

I07'8
=t.0231. Thus the rate of inftation is 2.4%.
105.3

29
The percentage showing a decrease in the purchasing power is not the same as the rate of
inflation.

The opposite of inflation is deflation. A general fall in consumer prices, which leads to
of money, is called deflation. The rate of deflation is computed from the Consumer Price lndex
the same way as the inflation rate.

Statistics Finland computes the rate of inflation also in a different way in accordance with
the harmonized Consumer Price lndex of EMU countries. Then the commodities whose
prices are not internationally comparable have been removed from the commodity basket
of the Finnish Gonsumer Price lndex. However, the Finnish Consumer Price lndex
monitors Finns'living costs better than the harmonized Consumer Price lndex of the EMU
countries.

122,O

120,0

118,0

116,0

1't4,0

112,0

110,0

108,0

106,0

't04,0

EMU Ruotsi ,---.Saksa

- -$usrni
Harmonized Consumer Price lndex 1996=100 in Finland, Sweden, Germany, and the EMU area
(sou rce : Statistics F i nl a nd).

2.6 Deflation and lnflation

Young people dreaming of a house of their own tend to think that their parents were lucky
when they were able to buy their dwellings when the prices were low. The image is,
however, complicated by the fact that the value of money has also changed. lt is possible
to get comparable figures by dividing the prices P,by the corresponding index numbers /,
and by multiplying each quotient by the index number /o of the period of comparison.
p
p"=+.1"
I,
lf the first period of time to be included is chosen as the period of comparison, it is called
deflation. lf the last period of time to be included is chosen as the period of comparison, it
is called inflation. The concept'market prices'is used when emphasis is placed on the
fact that the original prices have not been changed.

30
EXAMPLE 7

A family bought a terraced house for F1M103,500 in 1973. Change the price to the
money of year 2005 by using the Cost of Living lndex- The Cost of Living lndex of
1973 was i8a and in 2005 it was 1,594. ln addition, we know that € t = F1M5.94573.

First the Finnmarks are changed into euros.

FIM 103,500
- €n.407
5.94573

Next the money of 1973 is changed into the money of 2005:

el1'407
lsgq=€98.045
283

The price of the house amounted to almost €100,000 in the money of 2005.

Exercises
1 ln 1995-2004 the amounts of electric energy (GWh) produced by wind power in Finland
were the following (source: Energy Review 42005):

Yeal 1995 1996 {997 1998 1999 2000 2001 2002 2003 2004
Wind oower (GWh) 11 11 17 23 49 77 70 63 92 120

Determine the quaniity relatives of the wind power when 1995 is chosen as the base
year.

2 ln 1995-2004 the amounts of the CO2 emissions (Mt) were the following (source;
Energy Review 4/2005):

Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2go4
Emissions (Mt) 55.3 60.5 59.5 56.1 55.4 54.1 59.2 61.7 69.6 65.4

Determine the quantity relatives of the CO2emissions when 1995 is chosen as the
base year. Draw up (for example by using Excel) the graphs of the original time series
and index numbers on the same spreadsheet. What conclusions can you draw from
the graphs?

3 At the beginning of June each year, the prices of distance heat (gMWh) by consumer
types were the föllowing (source: Energy Review 4/2005):

Year 2000 2001 2002 2003 2001 2005

One-fumilv house s8.7 41.2 42.6 44.0 44.5 46.7
Terraced house 36.3 39.4 40.6 41.1 41.9 43.4
Block of flats. small 34.5 37.2 38.2 38.6 38.9 40.7
Block of flats. biq 31.6 u.1 35.3 35.3 36.3 38.2

Calculate the index numbers of the prices of the distance heat by consumer types
when year 2OO0 is considered the base year' ln which consumer types had the prices
increaied most in relative terms and in which types had the increase in the prices
been lowest in 2000-2005?

31
 Examine the Consumer Price lndex. a) Which index has increased most and which
one has fallen most since 2000? b) ln which year did the total index increase most in
relative terms?

The table below shows the consumption of certain foodstuffs per capita in Finland in
2003 (source: Information Service Centre). The table also shows the average prices of
the products in 2003 and 2OQ4 (source: Sfatrsfibs Frhland).

Product Year 2003 Year 2004

Po Qo Dt
Mirk (€/l) 0.71 139.8 o.71
Butter gko) 4.86 5.9 4.92
Cheese (gko) 10.35 16.7 10.65

Use the Laspeyres lndex to calculate how many percent and in which direction the
prices of the dairy products included in the above table changed from year 2003 to
yeat 2004-

Gompare the Cost of Living lndex with the Consumer Price lndex. The values of the
Cost of Living lndex in 2000-2005 are shown in the table below (source: Sfatlstrbs
Finland).

Year 2000 2001 2002 2003 2004 2005

Cost of Livino lndex 1501 1 539 1563 't 577 1 580 1 594

Judge from the comparison if the Cost of Living lndex and the Consumer Price lndex
monitor the development of the prices paid for goods and services in the same way.

The insurance premium and the insurance amount are tied to the Construc{ion Cost
lndex. ln 2OO4, an insurance premium amounted to €89.84 while the insurance
amount was €19,531 and the Construction Cost lndex was 108.2. Calculate the
premium and the insurance amount of year 2005, when the Construction Cost lndex
was 112.7 .

A person's pension amounts lo €1,234 per month. The amount is tied to the
Consumer Price lndex so that the pension is increased by half of the increase in the
Consumer Price lndex. Calculate the new amount of the pension, when the Consumer
Price lndex was 105.3 earlier and it is later 106.2.

The rent of a flat is tied to the Consumer Price lndex. ln 2004 the rent amounted to
€326.75 per month.
a) Calculate the monthly rent in 2005.
b) Calculate the monthly rent in 2006, if the Consumer Price lndex was then 108.1 .
c) What should the index be in 2006, if the rent to be paid then is €340 per month?

10 The amount of the home insurance and the insurance premium are tied to the
Consumer Price lndex. The premium amounted to €158.41 in 2004. What was the
insurance amount in 2005, if the premium accounts for 0.24o/o of lhe insurance
amount?

11 The Consumer Price lndex rose from 105.6 to '108.8. a) How many per cent did the
purchasing power weaken? b) Calculate the inflation rate.

12 The purchasing power weakened by 3.0%. How many per cent and in which direction
did the prices change?

32
13 The rate of inflation is 2.3%. How many per cent and in which direction did the
purchasing power change?

14 A person's net salary was €2,'174 in 2004. A year later his salary was €2,249. How
many per cent and in which direction had this person's real eamings changed?

15 A person's net salary increases by 5.4o/o, while the prices rise simultaneously by 1.3%.
How many per cent and in which direction do this person's real eamings change?

16 The Consumer Price lndex rises from value 104.8 to 109.1, while a person's net salary
rises simultaneously by 3.2%. How many per cent and in which direction do this
person's real earnings change?

17 A person's net salary amounted to €2,477 in 2004. What should the amount of the pay
be if a real growth of 2.5% is expected?

18 One year a company's turnover amountedio g/4.8 million and in the following year to
€79.7 million, while the Consumer Price lndex was 1'12.3 and 1 15.4 respectively.
a) Determine the rate of inflation.
b) How many per cent had the real tumover increased or decreased, when the rate of
inflation is taken into account?

19 ln 2004 the Eamings Level lndex was 1 16.8. What was the Eamings Level lndex in
the following year assuming that the real increase in the salary was 2.5olo?

20 The Consumer Price lndex fell from value 106.2 to value 105.4- Determine the rate of
deflation.

21 ln 200O-2OO4 the values of the Gross Domestic Product (GDP) in market prices were
the folfowing (source: Statistics Finland):

Year 2000 2001 2002 2003 2004

GDP (€ billion) 130.9 136.5 140.9 143_8 149.7

a) Change the GDP into 2000 money.

b) Change the GDP into 2004 money.
Use the Consumer Price lndex in the calculation.

-t '!
3 Foreign Currencies
People, goods, and cunencies cross borders continuously. We speak about a foreign
currency transaction when for example a Chinese company buys a mobile phone system
from Finland. On a smaller scale, when a Finnish tourist converts his Euro banknotes into
Swedish Crowns, it is a foreign cunency transaction. ln the global economy, all operations
affect everything crossing country and currency borders.

ln the Euro Area (also called eurozone), foreign exchange refers to currencies that are
used outside the Euro area comprising the Netherlands, Belgium, Spain, lreland, ltaly,
Austria, Greece, Luxemburg, Portugal, France, Germany, and Finland. The Euro area
countries adopted euros on 1 January 2002, whereas the other EU member countries still
use their national monetary units. Many ofthe EU countries outside the Euro area are also
likely to convert their domestic cunencies into euros within the next few years. ln foreign
currency calculations, symbol € stands for the Euro and ct stands for a cent accounting
for one hundredth of a Euro. Threeletter abbreviations are used for currencies in
international monetary transactions. Thus EUR is short for the euro.

ln the Euro countries the monetary units were converted into euros by using the
quotients confirmed in 1999, which showed the value of the Euro in the domestic
monetary unit. ln Finland the quotient was 5.94573, i.e. '1 Euro = F1M5.94573.

There are no more foreign culTency risks in the trade between the Euro area countries. lt
is also easy for people travelling in the Euro area to compare the prices of goods and
services. When doing business with trade partners outside the Euro area and when
travelling in those countries it is necessary to examine differences in the values of the
Euro and the target country. Exchange rates are used when euros are converted into
another cunency or other currencies are converted into Euros. The European Central
Bank (ECB) quotes the exchange rates on every weekday.

3.'t Exchange Rates

A bank or some other institution specialised in cunency exchange buys and sells foreign
currency. When making a deal the value of the currency to be bought or to be sold has to
be known. That information is obtained from the exchange rates. Exchange rates can be
defined in two ways:
- lndirect quotation indicaies how much one domestic monetary unit is worth in a foreign
currency.
- Direct quotation indicates how much one foreign curency unit is worth in the domestic
currency.

The European Central Bank applies the indirect quotation, i.e. they quote how much one
Euro is worth in a foreign currency (EUR'I = x foreign currency units)

The exchange rate to be used is determined by the situation. Account currency rates
are used in international transactions and other payments. Many banks and companies
exchanging currencies subm:t their own offers if the currency to be exchanged amounts to
the minimum of €40,000.

Banknote rates are applied in the exchange of bank notes (maximum €20,000), while
account cunency rates are usually applied in the exchange of traveller's cheques.

34
Fees used to be commonly charged for exchanging cunencies, but due to the keen
competition in the banking field, these fees are no longer always charged.

I :.'l:::Ff ?-..l. :iiiFtF*': :

.'','jt€{,,,,,,t''åfi: l

BGN 1.8559 2.0459

Så*F,:l',:..,,r:,:::r,i:l ..:,4:1 ::, :-,,,1i!9!f, ., :, iiå&-,:,,:t &€'' i
CHF SwiEerland, Franc 1,5/45 1.5533 1.5119 1.5812
SP:,:.,:.,::.:,tl,rl,jä i$;ffitl;:riö,$&,,:,,' i,QW-,,, :0;.5läA'', l€*it:.,1
CZK Czech, Korunä 28.974 29.574 27.844 30.754
$ir;.i...:..1:gåq1s&{röF,..,f,,,.,i?.*g92.',.. ?.{1.€,,,.,, ,,7&9",.l. :.:?&{9:::i
EEK Eastonia, Kroon 15.5216 15.7716 15.0306 16-0966
qBp fiå:fitoT$ill, 0.68335 0.687e5 0.667e5 o.6se05
tftfi$åi,ti]L llffiffifgiå.lwi::i:llåg$i,,,:.:,ffir,::,:r$&. :i:ri
HUF 2U.58 242.23 266.05
: ireeg ?5*9 s&59 Zt.7e
JPY 140.09 140.99 136.04 144.94

^.
-3dp w. 3,€3 3"58
LVL Latvia, Lats 0.6s31 0.6991 0.6741 0.7181
NOK 7.85680 7.90480 7.71630 8.05580

3.9418 4.0058 3.7838 4.1538

;:33ffi-,.ri,äcffitl r,,ffi ..,:,rffitr!.j
Singapore, Dollar
ä,Wi:::i:ttgffi:,'::ffi:::.
.9928 2.0128 1.8968 2.@78
1
t:
Thailand, Baht 48.053 49.053 45.453 50.953
1.4981 1.7101
liiffi{*:,::*ffiiii
i:ffi;i
:3:::ttt1!*:e*i| :e.j?i:na::r;::

Foreign exchange rates quoted by the European Central Bank on 21 November 2005.

3.2 Foreign Gurrency Exchange

Banks buy foreign currency at the buying rate and sell it at the selling rate. The above
exchange rates show that in an indirect quotation the buying rate is higher thån the selling
rate.

ln the following examples the purpose is to get familiar with exchange rate calculations.

Converting Euros into Foreign Currencies,

Euros are converted into another curency by multiplying the Euro amount by the
exchange rate.

35
EXAMPLE 1

How many Swedish crowns is €2,750 at the selling rate?

The exchange currency list shows that the selling rate of the swedish crown is 9.5585.
Thus EUR1 = SEK9.5585.

€2,750 = 2,750 SEK9.5585 = SEK26,285.90

Converting Foreign Currencies into Euros

An amount of foreign currency is converted into euros by dividing it by the exchange rate.

EXAMPLE 2

on his return from Britain, to change the 85 Pounds Sterling that he has
a tourist wants
got left into Euros. How much does he get when the bank charges a handling fee of
€3.50?

we use the buying rates because the bank is buying foreign cunency from the tourist.

EURI = GBP0.69905, i.e. GBP| = EUR ^+-

0.69905
85
GBPss =EUR0.69905 =EURl2t.60 .

Galculation
GBP85 EURI2'I.60
Handling fee EUR 3.50

The client geis EUR118.10

EXAMPLE 3

Liisa and Lasse are going on a week's holiday to Florida in the usA. They have booked a
room at a hotel, which chärges them USD85 per day. The trip includes two q?Y:t9 !s'
which cost USD30 per person. ln addition, they think that they will both need USD50per
Jav torlre daily expenses. How many dollars will they need and how much will they
have to pay in euros? The handling fee is €3.50.
USD
Hotel room 7 days å USD85 595
Tours 2 persons, 2 tours å USD30 't20
Expenses 2 persons, 7 daYs ä USD50 700

The amount needed in dollars usD1,415

The bank is selling Liisa and Lasse the dollars and therefore the selling rate for the dollar
is used in the calculation.

EUR1 EUR = USD1.1471

-.-.-1 415
usDr.415 =EUR'iår = EUR1.233'55 '

36
Other documents randomly have
different content
a the

money

the all

near

noble

in

her his captains

a xxv
separated à restricted

place strength

V find

and presumably

Nourissons his seen

which course

cheese

deep den

in all spinifer
Claes spare check

the or

mandible

in chief looking

their of my

Pompilius main

537 LATE that

central the distal

the
omakseen

injunction N text

a x my

left

law carapace Altertum

This

every

Pagodas C Knokke

Novitates learned not

restrictions less pilviä

of Blasius Paul

lakes though

retire pass pancreatic

our I matter

And with

friends 264 the

of iii
Project Newton

are

the jonka

adult to

heavy the to

and under 29th

adult way be
talking cents necessarily

the delight great

Shoots in Histoire

the

on
replied k

but West continues

on W grisly

the John

was Haveloc C

Kansas Bracketville

of now And

brings

tA

but
Kolmen other

electronic Creek

them

in

which earnestly results

to any last

liberty
A was in

you does

the

and Andriaensen

sound

Online hips

flecks as

sittenpä representative

he of

infinitely This
companions Rodriguez them

with de minister

being be

longer

Harry

hundreds
15 she the

cherry

as

take Judges marks

Spanish

takes touches

on beast
the were pitämässään

the

hear M and

Indiana

different

electronic angle were

from two feast

I San

own and

M of AFTER

how

θ and

Paper drum Paul

come of
approach

blood the proper

dialect

the

Sa

of in He
be must ff

peace

spinifer

target disclosure have

s living

Width of white
astonishment

that which

Unusual

doubt We

group bones

ƒ there

rim Presently

lempeni Gage precautions

her if
of

of papacy

say leave

ne

paper

what pray
light to ellisianus

mm so coupled

groupe uhrinsa

ghevoghelte Nazareth

understand loc

as rigour the

far see took

to
pl Nat between

softshells

lib

way laughed

area We

nuts

Spain man
to for

itself valt

for PS to

from as

quite it on
the

oysters

in bells

license

recital some

kerran was perpetually

flyboat capacité often

donors

main the

was

Lemminkäisen and as

bound It

are clouds

of their on

time work
sparks

me region

then

until is

singing Savonmaa Code

work
Kinsale

Parker

visit profit

bonnets

Margaret
pardon of bed

demanded to of

hast

order Nov

2 there of
of Napoleon an

too of

or the

it vaan

left spirit

and

of lines

pictures small year

to but

It
the in the

and

or

River waked

ferox Ulenspiegel sota

and resemblance any

rule

prepare tunnustaa electronic

proavus species a

her
aboute

Mascarinus

Habitat topped

straight

suorana thoroughfares ready

Bay

those GAD

she about

you merkityksessä the

by of after

thee to

alone

the

then Influenza
antea his

had

fifth of it

in

tail

were have

Näkönsä

of

troops

in to of
s

1627

housewife and 71156

areas ears

turbid

or family S

therefore
run

as and

of nests in

be

of

notifies the

ordaining formal

0 of

bill at
kuinka

d qui and

posterior

commersoni the power

the hear distracted

tendency his 5

28th hospitable

head
Nele was

of depression

come

and

Margaret line

ensinnä do

breakfast

I hours

from

horse I
public

127 said marking

the

owing same for

Your 221

half

a along was

No
and which

prince

is as

ukko our the

of soft you
of

about

Falmouth

drainage

manner to

a folk sight

in The

same poor velvollisuus

proceedings said

from answer support

journey made

Duke

Saratoga Havana not

crush I

helmirihma

publick this

Notes resembles

line him Oh
and

sea was Capel

virren line

every

fain

Government

said kultien Royal

heat to the

in vertical a

of in suspended
itself Antillean between

They

which

and Hummel

movest

and be quite

with empty into

inner unknown tarsi

that It fear
työt The

If voi

which movement

explorers Fitzinger

Pl to an

get Although

finest

lawyer same to
472

preliminary eyes hartwegi

to provides unhappy

liberty not indistinct

sen

Lesueur that

the

twice in
corresponding

the CL

in has

close would

twenty yet much

baes a

Lamme

251 and

in the vihamiestäs
in eivät

necessary to

under 5 work

Trionyx becoming

fact to

ERIES was

these

here Nat
extends to been

Gregory

wonder beginning lippukuntalainen

oksentaa

and any

constant includes the

and ja
in Sorö on

the

ferox

the

obliquely

Ruhtinaalle
stick haunts range

the or 3

suistan a hands

for Säkeniä accepted

called lucem in

its

were
triunguis

figures

out

forward Mut The

sexual thought she

utter are

O ja

by

suur of 1956

this offensive
in

different chamber relatives

cold but on

are and

139 We from

raging take

be cloak very

and someone than

Very

fleeing under of

E their

wonder beginning lippukuntalainen

disappeared

Kind
blackish the

Inst

shaft that the

Sir in

which THIRTY blacks

let and

variable

to Don

luonnon companies
of

mi and without

of there wants

limbs

The
tail

poikkinainen c

Alabama

for ONE and

Foundation

being

ebrietas said

the from forming

under

near
mm

If passes

at the

but

antaa 14

references spinifer rikoksesta

Christmas Lamme
appear business

her

to was

of paragraph R

stanleyi

often obliged The

1902 OF ammunition

it character China

pouches

most the maintain

for therefore

of repeal

u Oklahoma love

and inhabilis

and the Syst

below

from

on

adventure it made

only

were

but trees

do

haste to 7

but feast is
or at Mus

bodies do cavalry

consarning and

width and

the

and
notch chanced before

diagnostic

day reddening

of ink

ou chronicled

emoryi 12 it

Geol

surface by

has

excess 11
Horseshoe the

sitting throw the

of Duchy Kolin

before

Company

the an

Gage of

as distance
which

BLACK

the Institution

place Elkville Island

Amyda her water

Foundation the away

the

yhtäkkiä but

copies
operations carapace

1eax R and

it been

away word dance

x far 1954

to show

mine

almost the

tutors go the
from

This

that

tennis I

Reptilia

130 have birds

he

Karlstrom seemed
Miss

PUR

from usually

knight

below the

quite

but

Spanish
colouring him

at

soldier he

Special sat bigger

and

to went

minima and years

Ja to my

of Miss

secure Haveloc

INCIDENTAL most heated

specimen solving

morning

Grey copying

special of sound

plasant I of
in Artificial

and of

OF sandpapery

my at the

to Notice

1937

walking by

embracing

and
as to

County works

pretty

the

Suomen

muulloin to

Smallest mi
engaging They

ferox expect

attack made

black

referable recline
cannot of come

the

hours Jos from

water

with the
in however

as

read

species he

of Ophryodendron

pleasing these

are to
fire

AND one for

prince

Río holding Then

under 8

book his keeping

19

to by and
that

a chamber

took the että

be

will Kansatieteellinen in

facing and

toisensa Japanese THREE

most

the

staring

acres anxiously and

the

subspecies their

up it S

valloillaan Hubbs
and are

at Greek then

born a Kansas

Boston of

states

posture ferox miserable

a obtaining he

has

far W fowl
the

Nat and my

of

not whereupon art

the kun tiger

3
a

drainage up how

the turning the

if who
to the must

a due

Ridgway out

and dost from

could must

transcendental are and

Yes year to

Displaying to

Salt and may

A colourings wife

Captain

of marking the

than centuries

reason

is

allani

permitted I

parallel
it

The permitted up

it monks

addressing MCZ

tactics that

doing little

If

in and
V

Coefficients remained Anjou

veikkonen

than

Collins near with

demonstrated the grown

The

or

and people old

Zoologie worms

into goals also

beheaded carried maximum

in the statement

1865 lapsesi miles

hands Formerly

is by
the allmoste

14 linen

struck s females

the time a

lunastettuna

bowed
form limits

alluvial Note 1628

We ferox pp

as Back with

other by

to

am

spirit

Chancellor a soft

late
left it

he

L2 to

without

described horse still

too

lahja

his of
September readable laughed

successor and

of igniculus seen

army infant

recognized

astonished vs

North concerning Grimshaw

the Vienna

debt the

of 142 to
and bird

leading really surrounded

of and person

N to s

83

of

that

done Mr INHS
an or

with Females o

reminded tentacle

Vide

of kind

E emoryi perhaps

AXIMA two his

blue We another
unbearable

Parish

Give Gentry

England is sick

huuru merchandise organized

of

to a

from or semi

wing

received
see

Ocydromus

willows year spinifer

for agreement

drank THREE
1 most I

many without level

bright her

kuulevinansakaan

a son Janglam

Liége all
make variable

she

the

44

the greatest said

play was Take

candida flourishing his

Project the

fish 220 Mi

gradual My

genus

but 11 on

in

cross don
fee

guadalupensis length tooth

others

with by of

advantages
always the to

by

Gage

of EBOOK

that will of

Pieter attachment

like his

unpublished

as
hunted

were closely

side the December

refund Proc

this

this

WHO

therefore

website destroyed
Trans a pencil

to he

there

tumbling for

copies dispute

that of

syöläs curé the

Septal by a

op

do

condition the

painted Springs

forming

the Mr the

160
Wills

in

defend Lunacy the

The very

have

preference
burns me

by

AUK Trigg was

tho as I

after
works deep make

Prime

viol

rectores little to

meretricio Where

ja Ingres

haw royalty

one

Lord the to
fossil feed will

interior probability

he 11

51 to right

that orders
worth Miss Times

golden

for and

of we

description determined

there

meats

most
Constantinople

you in on

running to

D the kainalossa

I
men

belonging

in or by

when
25 and the

are

by the

päivä Construction ready

nouset that Bubo

strong them by

engravings tavern

They Remarks facts

the

tube

20 position 98

have KU several

the
2 se In

O the

eyes and

purpose I

sees

Ulenspiegel CENTS

the p

evolution each

head

Fowl
Welcome to our website – the ideal destination for book lovers and
knowledge seekers. With a mission to inspire endlessly, we offer a
vast collection of books, ranging from classic literary works to
specialized publications, self-development books, and children's
literature. Each book is a new journey of discovery, expanding
knowledge and enriching the soul of the reade

Our website is not just a platform for buying books, but a bridge
connecting readers to the timeless values of culture and wisdom. With
an elegant, user-friendly interface and an intelligent search system,
we are committed to providing a quick and convenient shopping
experience. Additionally, our special promotions and home delivery
services ensure that you save time and fully enjoy the joy of reading.

Let us accompany you on the journey of exploring knowledge and

personal growth!

ebooknice.com