Markup Discount

Applications of Percents Monday, October 6, 2008 The following proportion is used in problems involving __________________________________________________: adjusted % 100 = selling price original price  MARKUP (tax and tip): the adjusted % is found by _____________ the given % of markup to 100. (100 + % of markup )  DISCOUNT: the adjusted % is found by ________________________ the given % of discount from 100. (100 - % of discount) EXAMPLES: 1. The school store sells notebooks for $.79 each. They want to mark up the price by 65%. At what price should the store sell each notebook? 2. Best Buy is having a 20% off sale. What is the sale price of a CD player that regularly costs $160.00? COMMISSION is a ____________________________________________________. It is usually a percent of the selling price. commission rate  sales =commission 3. A car sales agent is paid a monthly salary of $700 plus commission. Last month she sold one sports car for $50,000, earning a 5% commission on the sale. How much was her commission? What was her total pay last month? 4. When you borrow money from a bank, you pay interest for the use of the bank’s money. When you deposit money into a savings account, you are paid interest. ________________________________ is one type of fee paid for the use of money. I=Prt EXAMPLES: 5. To buy a car, Jessica borrowed $15,000 for 3 years at an annual simple interest rate of 9%. How much interest will she pay if she pays the entire loan off at the end of the third year? What is the total amount that she will repay? 6. Nancy invested $6000 in a bond at a yearly rate of 3%. She earned $450 in interest. How long was the money invested?