# Category Archives: Lesson plan

## Markdown

Definition:

MARKDOWN (MD) — we define it as the difference between original selling price (OSP) and the new selling price (NSP).
The formula is written this way,

MD = OSP – NSP

NOTE:
We could also solve for markdown by multiplying the original selling price and the markdown rate.
The formula is written as follows:

MD = OSP * MDR
where
MD = markdown
OSP = original selling price
MDR = markdown rate

EXAMPLE 1: If OSP = Php48,750 and MDR = 18%, (a) what is the markdown? (b) what is the new selling price?

SOLUTION:

(a)
MD = OSP * MDR
MD = 48,750 * 0.18
MD = Php8,775

(b)
MD = OSP – NSP
NSP = OSP – MD
NSP = 48,750 – 8,775
NSP = Php39,975

TRY THIS:
1)
OSP = Php55,985
NSP = Php47,587.25
MD = ?
MDR = ?

## Markup

Definition:

MARKUP (MU) — we define it as the difference between the current increase selling price (CuISP) and the previous selling price (PrSP).
The formula is written this way,

MU = CuISP – PrSP

NOTE:
We could also solve markup by multiplying the previous selling price and the markup rate.
The formula is written as follows:

MU = PrSP * MUR
where
MU = Markup
PrSP = Previous selling price
MUR = Markup rate

EXAMPLE 1:
Due to 10% EVAT the price of a certain item is increased. The previous selling price is Php958,759. (a) What is the markup? (b) What is the current increase selling price?

SOLUTION:

(a)
MU = PrSP * MUR
MU = 958,759 * 0.10
MU = Php95,875.9

(b)
MU = CuISP – PrSP
CuISP = MU + PrSP
CuISP = 958,759 + 95875.9
CuISP = Php1,054,634.9

Try This:
1) The previous selling price of an item was Php87,980 and it sold for Php109,985. (a) What is the markup? (b) What is the markup rate?

## Markon

Definition:

MARKON (MO) — we define it as the difference between the initial cost (IC) and the selling price (SP).
Hence, we say,
MO = SP – IC

Note:
We could also solve markon by multiplying initial cost and the markon rate. The formula is given as follows:

MO = IC * MOR
where
MO = markon
IC = initial cost

EXAMPLE 1:
Mr. Vasques bought an item for Php450 and sells it for Php540. (a) What is the markon? (b) What is the markon rate?

SOLUTION:

(a)
MO = SP – IC
MO = 540 – 450
MO = Php90

(b)
MOR = MO/IC
MOR = 90/450
MOR = 0.20
MOR = 20%

TRY THIS:
1)
IC = Php180
MO = Php27
SP = ?

2)
IC = Php7,500
MO = Php1,000
MOR = ?

## Single Discount Rate Equivalent

When successive trade discount rates are offered, we call it Discount in Series. One way to evaluate it is the Single Discount Rate Equivalent (SDRE). Here, the bigger the single discount rate equivalent, the lesser is the net price.
The formula for determining SDRE is given as:
SDRE = 100% – [NPR1 * NPR2 * …* NPRn]
where NPR is the net price rate.

Example 1: BM3+ Trading firm was offered an equipment with trade discounts of 15% and 10%. Find the single discount rate equivalent.

SOLUTION:
Given:
Rd1 = 15%
Rd2 = 10%

SDRE = 100% – [(100% – 15%)(100% – 10%)]
SDRE = 100% – [(85%)(90%)]
SDRE = 100% – [(0.85)(0.90)]
SDRE = 100% – 0.765
SDRE = 100% – 76.5%
SDRE = 23.5%

Exercises:
1. Compute the single discount rate equivalent (SDRE) of the ff. discount series. Express your answer in percent form.
A) 60% and 12%
B) 35%, 16% and 20%
C) 30%, 20%, 15% and 5%

## Simple Interest

1. Determining the Interest and the Amount

The formula for determining interest is given as:
I = Prt, where
I = interest
P = principal or the borrowed amount
r = interest rate
t = time or the duration of the loan/investment

Example 1:
Mr. Paulo Roque borrowed Php2,600 from Mr. X at an interest rate of 5%, what is the interest in 3 years? How much should Mr. Paulo Roque pay at the end of 3 years?

SOLUTION:

Given:
P = Php2,600
r = 5% or 0.05 (per year)
t= 3 years
I = ?

I = Prt
I = (2,600)(0.05)(3)
I = (2,600)(0.15)
I = Php390

Then, to find the total amount to be paid at the end of 3 years, the formula for computing it is

A = P + I, where
A = sum or total amount to be paid
P = principal
I = interest

Thus,
A = P + I
A = Php2,600 + Php390
A = Php2,990

Example 2:
How much interest will be charged if Dominic Daez borrows Php15,000 for 2 years at interest rate of 9%?

SOLUTION:

Given:
P = Php15,000
r = 9% or 0.09 (per year)
t = 2 years
I = ?

I = Prt
I = (15,000)(0.09)(2)
I = (15,000)(0.18)
I = Php2,700

## Conversion Techniques 2

Karugtong na post (2/2)

5. Converting Decimal to Fraction
STEP: To convert decimal to fraction, write the given decimal number without considering or disregarding the decimal point as the numerator and the denominator is 1 with the number of zeros annexed same as the number of decimal places in the original decimal. Then reduce the fraction to its lowest term.
Example:
* 0.5 = 5/10 = 1/2
* 1.25 = 1 and 25/100 = 1 and 1/4
* 0.125 = 125/1000 = 1/8

6. Converting Decimal to Percent
STEP: To convert decimal to percent, move the decimal point two places to the right and write the percent symbol % after the number.
Example:
* 0.079 = 7.9%
* 9.158 = 915.8%
*15.72 = 1572%
* 3.5 = 350%

P.S. Masarap ang feeling na kahit hindi ka na nag-aaral may bago ka pa ring natutunan. Dapat we should not stop learning even after schooling. Read and read and you’ll live more. It’s your way to sun zone success!

## Conversion Techniques

Business mathematics – ito ang itinuturo kong subject ngayon at gusto kong magshare ng kunti sa inyo. Heto na… ðŸ™‚

1. Converting Fraction to Decimal
STEP: To convert fraction to decimals, simply divide the numerator by the denominator.
Example:
* 3/24 = 0.125
* 9/36 = 0.25
* 5/8 = 0.625

2. Converting Fraction to Percent
STEP: To convert fraction to percent, convert first the given fraction to decimal and then move the decimal point two decimal places to the right and write the symbol percent (%) after the number.
Example:
* 5/10 = 0.5 = 50%
* 36/48 = 0.75 = 75%
* 28/32 = 0.875 = 87.5%

3. Converting Percent to Fraction
STEP: To convert percent to fraction, remove the symbol % and write 100 as denominator and then reduce it to lowest term.
Example:
* 12% = 3/25
* 85% = 17/20
* 45% = 9/20

4. Converting Percent to Decimal
STEP: To convert percent to decimal, move the decimal point two places to the left and remove the percent sign %.
Example:
* 15% = 0.15
* 62.5% = 0.625
* 0.125% = 0.00125