Financial Math Essentials

📋 Course Outline

1. Pricing and discounts
2. VAT calculation
3. Interest, profit, loss and trading

📖 1. Pricing and discounts

🔑 Key Concepts & Definitions

• Selling price : The selling price is the price charged after adding mark-up or other adjustments to the cost price.
• Discount : A discount is a reduction from the marked or original price applied when items are on sale.

📝 Essential Points

• To find the selling price, start from the cost price and apply the required pricing relationship given in the question.
• To work out a discount, calculate how much is taken off the sale price using the stated discount amount or rate.
• You can calculate 10%, 25%, and 50% discounts on items on sale by taking the stated percentage of the relevant price.
• The final sale price is the original price minus the discount on that item.

💡 Memory Hook

Discounts mean “take off”: Final price = Original price − (discount % × original price).

📖 2. VAT calculation

🔑 Key Concepts & Definitions

• VAT charged : VAT charged is the tax added to goods on sales, shown as a VAT amount on sales dockets.
• VAT : VAT is a tax on consumption where the charged amount is recorded separately from the product price.

📝 Essential Points