Profit, loss and interest

Cost price, selling price, profit, loss, discount and interest. Read one part at a time and tap “I know this”. Then test yourself in the quiz.

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Profit and loss

Term	Meaning
cost price	what you paid
selling price	what you sell for
profit	selling price − cost price (if more)
loss	cost price − selling price (if less)

Rule

Buy for R40, sell for R55: profit = R15.

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A budget plans income (money in) and expenses (money out).
A discount lowers the price: 10% off R300 = R270.
Budget: Lerato gets R200 pocket money. She plans R80 for transport, R50 for airtime and R40 for snacks. Expenses = R80 + R50 + R40 = R170, so R200 − R170 = R30 is left to save. If the expenses are more than the income, the budget does not balance.
Simple interest: interest = amount × rate × time. R1 000 at 8% per year for 3 years = 1 000 × 0,08 × 3 = R240.

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Hire purchase: you pay a deposit and then monthly instalments. Example: a TV costs R6 000 cash, or R600 deposit plus 12 × R550 = R7 200. Hire purchase costs R1 200 more.
A loan must be paid back with interest; an account (such as a store account) is buy now, pay later.
An exchange rate says how many rand one unit of another currency costs. If 1 US dollar = R18, then a book of 25 dollars costs 25 × R18 = R450.

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Remember this: your summary

Write these points in your book. Read them again the night before the test.

Memory trick

More out than in? Loss. More in than out? Profit.

Flash cards · Tap to turn over

First say the answer yourself, then turn the card over.

Now the real quiz!

The quiz has many more questions on this topic. Every question shows straight away whether you are right and explains why.

For parents

Let your child work the examples on paper and explain them to you.
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Follows CAPS for Grade 7 Mathematics. Always check your teacher’s notes and textbook too.