BUSINESS MATHEMATICS 2025/2026

TOPIC NUMBER ONE:

NUMBER SYSTEM
Introduction To fulfil daily human needs, man invented counting numbers at the
beginning of civilization. The successive development of numbers develop the use of
mathematics. Mathematics is a game of numbers. In business mathematics numbers
are used in business problems. So to clear the concept of business mathematics firstly
we have to clear the concepts of number system which means we have to discuss the
nature and properties of various sets of numbers.

Definition: A number is a means of telling how many objects we are counting and
denoted by numerals. The number system started by counting of objects, and it is
composed of various numbers, symbols or figures representing numbers and certain
rules governing operations on them. The numbers can be represented by {1, 2, 3, …} or
or {I, II, III, …} and so on, what is of importance is the nature and characteristic of these
numbers, whether they are capable of performing one or more operations of addition,
multiplication, subtraction and division, it is because of this a good deal of
importance is being attached to properties of the system. In this topic, a short discussion
on real number system will be useful in enhancing your knowledge on this tool, but we
initiate the number system by natural numbers and then proceeds to other systems.

(1) NATURAL (OR COUNTING) NUMBERS-This is a set of numbers we normally use

in counting. The set is infinite and is denoted by 𝑁. Hence = {1, 2, 3, 4, 5, … }. Thus
while 546 is a natural number; 0, -7
14.5 and 5⁄8 are not natural numbers. The set of natural numbers can be drawn on the
Cartesian coordinate. The members of the natural numbers are distinct, they are not
joined, they are disjoint.

PROPERTIES OF NATURAL NUMBERS

(1) Summation or multiplication of two or more natural numbers must be the natural
number. That is If
𝑚, 𝑛 ∈ 𝑁 then 𝑚 + 𝑛 ∈ 𝑁 and 𝑚 × 𝑛 ∈ 𝑁. For example consider the numbers 4, 5 ∈ 𝑁.
So 5 + 6 =
11 ∈ 𝑁 and 5 × 6 = 30 ∈ 𝑁

(2) Square of any natural number is also a natural number, that is if 𝑚, 𝑛 ∈ 𝑅, then
𝑚 ∈ 𝑁. For example, consider the numbers 4, 5 ∈ 𝑁, then 42 = 16 ∈ 𝑁 and 52 = 25 ∈
2

𝑁.

(3) Subtraction or division of any two natural numbers may be or may not be a
natural number. That is if, 𝑛 ∈ 𝑁 , then 𝑚 − 𝑛 and 𝑚⁄𝑛 may be or may not be a
natural number. For example: Consider the numbers 3, 6 ∈ 𝑁, 3 − 6 = −3 𝑛𝑜𝑡 𝑁 , but
6 − 3 = 3 ∈ 𝑁 and 6⁄3 = 2 ∈ 𝑁, but
is not in N
(4)(a) Addition on natural numbers:
Other basic properties of addition on natural numbers are as follows:
(i) Commutative property: 𝑚 + 𝑛 = 𝑛 + 𝑚, ∀ 𝑚, 𝑛 ∈ 𝑁
(ii) Associative property: 𝑚 + (𝑛 + 𝑝) = (𝑚 + 𝑛) + 𝑝, ∀ 𝑚, 𝑛, 𝑝 ∈ 𝑁
(iii) Cancellation property: 𝑚 + 𝑝 = 𝑛 + 𝑝 then 𝑚 = 𝑛 ∀ 𝑚, 𝑛, 𝑝 ∈ 𝑁

(b) Multiplication on natural numbers:

Other basic properties governing multiplication on natural numbers are as follows
(i) Commutative property: 𝑚 × 𝑛 = 𝑛 × 𝑚, ∀𝑚, 𝑛 ∈ 𝑁
(ii) Associative property: 𝑚 × (𝑛 × 𝑝) = (𝑚 × 𝑛) × 𝑝, ∀𝑚, 𝑛, 𝑝 ∈ 𝑁
(iii) Cancellation property: 𝑚 × 𝑝 = 𝑛 × 𝑝, then 𝑚 = 𝑛, ∀ 𝑚, 𝑛, 𝑝 ∈ 𝑁
(iv) Identity property: 𝑚. 1 = 𝑚, ∀ 𝑚 ∈ 𝑁
(v) Distributive property: 𝑚. (𝑛 + 𝑝) = 𝑚 × 𝑛 + 𝑚 × 𝑝, ∀ 𝑚, 𝑛, 𝑝 ∈ 𝑁

(2) PRIME NUMBERS

A Prime number- is a number that can be divided without a remainder by exactly two
distinct numbers itself and 1. Prime numbers are 2, 3, 5, 7, 11, 13, 17……(number 1 is
note a prime because it can be divided evenly by only one number .The number1)

3) WHOLE NUMBERS – A set of whole numbers is denoted by 𝑊,

is the extension of the set of natural numbers 𝑁 by incorporating 0 into the set. Hence
W= {0, 1, 2, 3, 4, 5, …} this means the set of natural numbers 𝑁 is a subset of a set of
whole numbers 𝑊. Written 𝑁 ⊂ 𝑊.

(3) INTEGERS – The set of integers consists of all elements making up a set of
whole numbers 𝑊 as well as negative numbers.
The set is denoted by 𝐼 (𝑜𝑟 𝑍) and therefore it consists of Negative numbers, zero
and positive numbers. So Z = {… − 5, −4, −3, −2, −1, 0, 1, 2, , 3, 4, 5 … . }. Note that
zero is neither positive nor negative. So we can write 𝑁 ⊂ 𝑊 ⊂ 𝐼. As in 𝑁 and 𝑊
members of the set 𝐼 are also distinct numbers.
PROPERTIES OF INTEGERS
(1) Summation or subtraction or multiplication of any two integer numbers must be an
integer number. That is, if 𝑚, 𝑛 ∈ 𝐼, then 𝑚 + 𝑛 ∈ 𝐼, 𝑚 − 𝑛 ∈ 𝐼 and 𝑚 × 𝑛 ∈ 𝐼. For
example. Consider the numbers
5, −3 ∈ 𝐼, then 5 + (−3) = 2 ∈ 𝐼, 5 − (−3) = 8 ∈ 𝐼 and 5 × −3 = −15 ∈ 𝐼

(2)Square of any two integers is also an integer number. That is, if 𝑚 ∈ 𝐼, then 𝑚2 ∈ 𝐼.
For example consider the numbers 4, −5 ∈ 𝐼 here 42 = 16 ∈ 𝐼 and (−5)2 = 25 ∈ 𝐼
(3)Division of any two integers may be or may not be an integer number. That is, if 𝑚, 𝑛
∈ 𝐼, then 𝑚⁄𝑛 (where 𝑛 ≠ 0) may be or may not be an integer number. For example.
Consider the numbers 2, 5, 8 ∈ 𝐼. Then 8⁄2 = 4 ∈ 𝐼, but 2⁄8 = 14 and 5⁄2 = 2.5 are not
integer numbers.

(4)The square root of an integer number may be or may not be an integer number. That
is, if 𝑚 ∈ 𝐼, then may be or may not be an integer number. For example.
Consider the numbers
4, 3, 5, 7 ∈ 𝐼, the 𝐼 but . are not
Integers.

(5) EVEN NUMBERS

Integer numbers which are divisible by 2 without a remainder. These includes … …
- 6, −4, −2, 0, 2, 4, 6, generally an even number is denoted by 2𝑛. Where 𝑛 ∈ 𝐼.
If addition or subtraction or multiplication or square or square root exists as an integer, it
must be an even number, but division of two even numbers may be or may not be even
numbers.

(6) ODD NUMBERS

These are Integers which are not divisible by 2. These includes
… . . −5, −3, −1, 1, 3, 5…
Generally an odd number is denoted by 2𝑛 − 1 where 𝑛 ∈ 𝐼. If multiplication or square
root of odd number(s) exists as an integer, it must be an odd number.

(6) RATIONAL NUMBERS

𝑝
The numbers which can be expressed in the form of where 𝑝 and 𝑞 are integers and
𝑞
𝑞 ≠ 0 are called rational numbers. The set of rational numbers is denoted by 𝑄. That is

𝑝
𝑄 = { 𝑞 : 𝑝, 𝑞 ∈ 𝐼 𝑎𝑛𝑑 𝑞 ≠ 0}. For example 7, −2, and 2.5 are rational numbers because
7 −2
7=1 ,−2 = and 2.5 = 5⁄2.
1

The important characteristic of rational numbers is that when expressed as decimal

fractions they are either terminating decimals or non-terminating recurring
decimals. For example 2⁄5 = 0.4, 35⁄16 = 2.1875 are terminating decimals, while
1⁄6 =0.16666 …, 3⁄11 = 0.272727272 … …, 29⁄7 = 4.142057 142057 142057 14285 …,
3⁄13 =0.230769 230769 230769 2307 …. 3⁄7 = 0.428571 428571 428571 4285 … ….

Are nonterminating recurring decimals.

𝑚
So in general the set = { 𝑛 : 𝑚, 𝑛 ∈ 𝐼 𝑎𝑛𝑑 𝑛 ≠ 0}
We may show that any non-terminating recurring decimal represent a rational number.
For example, consider the decimal number 1.34444…. If the repeating cycle contain
one digit it should be multiplied by 10 and then the original quantity be deducted from
the new one as shown below.
Let 𝑥 = 1.3444.. therefore 10𝑥 = 13.444..
𝑥 = 1.344..
9𝑥 = 12.1 hence 𝑥 = 121⁄90

Example 1
Represent as rational numbers the following decimals: (a) 0. 3̇ (b) 0. 2̇4̇ (c)0. 9̇34̇ (d)
0.524444 …
PROPERTIES OF RATIONAL NUMBERS
(1) Summation or subtraction or multiplication or division or square of rational
numbers, must be a rational number. That is if 𝑚, 𝑛 ∈ 𝑄, then 𝑚 + 𝑛 ∈ 𝑄, (𝑚 − 𝑛) ∈ 𝑄,
⁄𝑛 ∈ 𝑄 and 𝑚2 ∈ 𝑄. For example. Consider the numbers. 7, 10 ∈ 𝑄, then 7 + 10 = 17 ∈ 𝑄,
7 − 10 = −3 ∈ 𝑄, 7 × 10 = 70 ∈ 𝑄, 7⁄10 ∈ 𝑄 and 72 = 49 ∈ 𝑄

(2) Square root of a rational number may be or may not be a rational number. That
is, if 𝑚 ∈ 𝑄, then √ may be or may not be a rational number. For example. Consider the
numbers 4, 5 ∈ 𝑄 , then 2 𝑜𝑟 − 2 ∈ 𝑄, but is not a rational number.

(3) There are infinite rational numbers between any two different numbers. For example.
Let us consider the numbers 2 and 3 then all 2.01, 2.001, 2.0001, 2.0000001, 2.1,
2.0000002, 2.5, 2.45, 2.9452, 2.4475 and so on. Are greater the 2 but less than 3.

(7) IRRATIONAL NUMBERS

The number which cannot be written as p⁄𝑞 where 𝑝, 𝑞 are integers and 𝑞 ≠ 0 are called
irrational numbers. The set of irrational numbers is denoted by 𝑄′. For example
𝑄
In terms of decimals, irrational numbers have which are non-periodic or non-repeating.
𝜋 …. it should be noted that 22⁄7 which is
often used for 𝜋 is irrational number in fact 𝜋 ≠ 22⁄7 since 22⁄7 = 3.1428571428571428
…. Only for simplicity 22⁄7 is used to approximate the irrational number 𝜋. The number 𝑒
= 2.718281828 … has wide applications in social, physical and natural science. The
number is used to define the logarithmic and exponential functions which are widely
applied by chemists, biological scientists and economists.

PROPERTIES OF IRRATIONAL NUMBERS

(i) Summation or subtraction or multiplication or division of different irrational numbers is
an irrational number. That is, if 𝑚, 𝑛 ∈ 𝑄′, then (𝑚 + 𝑛) ∈ 𝑄′, (𝑚 − 𝑛) ∈ 𝑄′, (𝑚 × 𝑛) ∈ 𝑄′,
and 𝑚⁄𝑛 ∈ 𝑄′ where 𝑛 ≠ 0. For example. Consider the following two irrational numbers
.
Here 𝑄′ and 𝑄′
(2)Square of any irrational number is a rational number. That is, if 𝑚 ∈ 𝑄′, then 𝑚2 ∈ 𝑄′.
For example.
𝑄′, then 𝑄′
(3)A square root of an irrational number must be irrational. So if 𝑚 ∈ 𝑄′, then 𝑄′.
For example.
𝑄′ and 𝑄′

(4)An algebraic operation between rational and irrational make a result of an irrational
number. That is, if
𝑚 ∈ 𝑄 and 𝑛 ∈ 𝑄′, Then (𝑚 + 𝑛), (𝑚 − 𝑛), (𝑚 × 𝑛), (𝑚⁄𝑛) ∈ 𝑄′

(8) REAL NUMBERS- The set of real numbers, is a combination of the set of rational
and irrational numbers. The set of real numbers is denoted by 𝑅. That is 𝑅 = {𝑥: 𝑥 ∈ 𝑄
𝑜𝑟 𝑥 ∈ 𝑄′}. Numbers such as
are real numbers. So from this
information, the set of real numbers is considered to be the universal set whose subsets
are: the set of natural numbers, integers, rational numbers and irrational numbers.
So in fact it can be written as.
𝑁 ⊂ 𝐼 ⊂ 𝑄 ⊂ 𝑅. Thus natural numbers constitute a proper subset of integers and
integers constitute a proper subset of rational numbers and the later constitute a proper
subset of real numbers.

PROPERTIES OF REAL NUMBERS

(1) Summation or subtraction or multiplication, or division or square of real number(s)
must be a real number. That is, if 𝑚, 𝑛 ∈ 𝑅, then (𝑚 + 𝑛) ∈ 𝑅, (𝑚 − 𝑛) ∈ 𝑅, (𝑚 × 𝑛) ∈ 𝑅,
(𝑚⁄𝑛) ∈ 𝑅 and 𝑚2 ∈
𝑅. For example. Consider the real numbers 7, 20 (or 7, 20 ∈ 𝑅). Here we have
(7 +20) = 27 ∈ 𝑅, (7 − 20) = −13 ∈ 𝑅, (7 × 20) = 140 ∈ 𝑅, (7⁄20) = 0.35 ∈ 𝑅 and (𝑚2) =
49 ∈ 𝑅.

(2)Even power of any real number is a positive real number. So in particular a square of
any real number is a positive real number. That is, if 𝑚 ∈ 𝑅, then 𝑚2 ∈ 𝑅+. For
example. Consider 3.4 ∈ 𝑅 then (3.4)2 = 11.56 ∈ 𝑅+.

(3)A square root of a real number may be or may not be a real number. That is, if 𝑚 ∈
𝑅, then √𝑚. Either a real number or not a real number. For example Consider the real
numbers 4, −2 (or 4, −2 ∈ 𝑅) while is not a real number.
(4)Between two different real numbers on must be greater than the other number. That
is, if 𝑚, 𝑛 ∈ 𝑅 then either 𝑚 > 𝑛 or 𝑛 > 𝑚. For example. Consider the real numbers 5,
7 (5, 7 ∈ 𝑅), here 7 > 5.

(5)There is infinite real numbers between any two different real numbers. Consider any
two real numbers let say 2 and 3. On all of 2.1, 2.0021, 2.0001, 2.35, 2.405, 2.05,
2.52, 2.0475 and so on are greater than 2 and less than 3 but they are real numbers.

(6)We can present all real numbers by a straight line. This straight line is known as a
number line. −7 − 6 − 5 − 4 − 3 − 2 − 1 0 1 2 3 4 5
6 7

(7)If 𝑚, 𝑛 ∈ 𝑅 and (𝑚 × 𝑛) = 0, then at least one of them is 0, that is either 𝑚 = 0 or 𝑛 = 0

or both
𝑚=𝑛=0

W. Example1
Solve the polynomial 𝑥2 + 3𝑥 − 10 = 0.
Solution
𝑥2 + 3𝑥 − 10 = 0 then 𝑥2 + 5𝑥 − 2𝑥 − 10 = 0
(𝒙 + 𝟓) − (𝒙 + 𝟓) = 𝟎
(𝑥 − 2)(𝑥 + 5) = 0 so here either (𝑥 − 2) = 0 or (𝑥 + 5) = 0
therefore 𝑥 =𝟐 𝒐𝒓 𝒙 = −𝟓

Other properties of real numbers are:

(a) Addition properties of real numbers
i. Commutative property: If 𝑚 and 𝑛 are real numbers, then 𝑚 + 𝑛 = 𝑛 + 𝑚, ∀ 𝑚, 𝑛
∈𝑅
ii. Associative property: If 𝑛, 𝑏. 𝑝 ∈ 𝑅, then 𝑚 + (𝑛 + 𝑝) = (𝑚 + 𝑛) + 𝑝,∀ 𝑚, 𝑛, 𝑝, ∈ 𝑅
iii. Identity property: There exists a real number 0 such that 𝑚 + 0 = 0 + 𝑚 = 𝑚, ∀ 𝑚 ∈
𝑅. The real number 0 is known as additive identity:

(b) Multiplication properties on real numbers

i) Commutative property: 𝑚 × 𝑛 = 𝑛 × 𝑚, ∀ 𝑚, 𝑛 ∈ 𝑅
ii) Associative property: 𝑚 × (𝑛 × 𝑝) = (𝑚 × 𝑛) × 𝑝, ∀ 𝑚, 𝑛, 𝑝 ∈ 𝑅
iii) Identity property: There exists a real number 1 such that × 1 = 1 × 𝑚 = 𝑚, ∀
𝑚 ∈ 𝑅.The real number1 is called a multiplicative identity.
iv) Each element has a multiplicative inverse denoted by −1.
𝑚 × 𝑚−1 = 𝑚−1 × 𝑚 = 1. Note that 𝑚−1 = 1⁄𝑚
v) Multiplication is distributive over addition
 𝑚 × (𝑛 + 𝑝) = 𝑚 × 𝑛 + 𝑚 × 𝑝

INTERVAL

The interval or domain of 𝑥 is denoted by 𝒂 ≤ 𝒙 ≤ 𝒃 or [𝒂, 𝒃] where 𝑎 ≤ 𝑏 and 𝑎, 𝑏 ∈ 𝑅.

this means the value of 𝑥 contain any real number from 𝑎 to 𝑏.

This interval is known as closed interval because its starting and ending values are
known, that are "𝒂" and "b". Respectively. No one knows the immediate before any real
number and the immediate after. So if "𝒂" and “b” are omitted from the interval 𝒂 ≤ 𝒙 ≤
𝒃 is indicated as 𝑎< 𝒙 < 𝒃 or (𝑎, 𝑏), which means that the value of 𝑥 contains any real
number from "𝒂" to "b". This interval is called opened interval because its starting and
ending values are not known.

MODULUS OF REAL NUMBERS (OR ABSOLUTE NUMERICAL VALUE)

The modulus of a real number is defined as a real number 𝒂 or−𝑎. The modulus of a
real number 𝑎" is denoted by |𝑎| and is defined by:

𝒂 𝑰𝒇 𝒂 𝒊𝒔 𝒂 𝒏𝒐𝒏 − 𝒏𝒆𝒈𝒂𝒕𝒊𝒗𝒆 𝒏𝒖𝒎𝒃𝒆𝒓 𝑎 ≥ 0

|𝒂| = {
−𝒂 𝒊𝒇 𝒂 𝒊𝒔 𝒂 𝒏𝒆𝒈𝒂𝒕𝒊𝒗𝒆 𝒏𝒖𝒎𝒃𝒆𝒓 𝑎 < 0
For example:
|5| = 5
|−5| = 5 and
|0| = 0
PROPERTIES OF MODULUS
(1)The modulus of a real number "𝑎" is always a non-negative number "𝑎" i.e. |𝑎| ≥ 0
(2)The modulus of a real number is always greater or equal to a number |𝑎| ≥ 𝑎
(3)The modulus of "𝑎" and −"𝑎" are equal i.e. |𝑎| = |−𝑎|
(4)The Modulus of "𝑎" is the maximum value of 𝑎 and −𝑎
(5)The Modulus of "𝑎" is a positive square root of i.e. |𝑎|

W. Example 1
Find the solution set of |3𝑥 + 2| < 7 and represent on a number line.

Solution
(i) If 3𝑥 + 2 is a non-negative number then |3𝑥 + 2| = 3𝑥 + 2 that is:
3𝑥 + 2 < 7
3𝑥 < 7 − 2
3𝑥 < 5
𝑥 < 5⁄3
(ii)If 3𝑥 + 2 is negative, then |3𝑥 + 2| = −(3𝑥 + 2) therefore:
 −(3𝑥 + 3) < 7
−3𝑥 − 2 < 7
−3𝑥 < 9
𝑥 < −3
Therefore the solution is 𝑥 < 𝟓⁄𝟑 and 𝒙 < −𝟑

(9) IMAGINARY NUMBERS

A square root of a negative number is called an imaginary number because a square of
any real number is Positive only. So are imaginary numbers. The
imaginary number of is denoted by 𝑖 and 𝑖

3𝑖
(10) COMPLEX NUMBERS
If "𝑎" and "𝑏" are two real numbers then the number of the form 𝑎 + 𝑏𝑖 is known as a
complex number as it has a real part "𝑎" and imaginary part "𝑏𝑖". For example 4 + 3𝑖, 0
+ 3𝑖, 2 + 0𝑖, 3 + 5𝑖 and 3 − 5𝑖 are complex numbers.
The complex number 𝑧 = 𝑎 − 𝑏𝑖 is a conjugate of 𝑧̅ = 𝑎 + 𝑏𝑖, so from this information we
can express that every real number is a complex number. For example 3, 4, 5 are 3 +
0𝑖, 4 + 0𝑖 and 5 + 0𝑖

W. Example2
Multiply 3 + 5𝑖 and 3 − 5𝑖

Solution
(3 + 5𝑖)(3 − 5𝑖) = 3(3) − 3(5𝑖) + 3(5𝑖) − (5𝑖)(5𝑖)
= 9 − 15𝑖 + 15𝑖 − 25𝑖2
= 9 − 25(−1) = 34
1.2 FRACTION, DECIMAL AND PERCENTAGE
FRACTIONS
𝑎
A fraction is a part of a whole. It is written in one of three formats: 𝑎⁄𝑏 or 𝑎⁄𝑏 or .
𝑏
Each of these formats means exactly the same thing.
The number on the top, side, or to the left of the line is known as the numerator. The
number on the bottom, side, or to the right of the line is known as the denominator.
The slash or line in the middle is the divisor line.
Therefore “a” is the numerator and “b” is a denominator.
Proper Fraction: The numerator is smaller than the denominator. Answer is between 0
and 1 e.g 2/5
Improper Fraction: The numerator is larger than the denominator. Answer is greater
than 1 e.g 5/2
Compound Fractions/Mixed Numbers: A fraction that combines an integer with either
2
a proper or improper fraction. E.g 35 when the division is performed, the proper or
improper fraction is added to the integer. Answer is greater than the integer
Complex Fraction: A fraction that has fractions within fractions, combining elements of
compound, proper, or improper fractions together. It is important to follow BEDMAS in
2
5
resolving these fractions. E.g 3 7

Equivalent Fractions: Two or more fractions of any type that have the same numerical
2 1
value upon completion of the division, they give the same answers. Eg 4 and 2

Example:
7 49
a. Solve for the unknown term x, =
12 𝑥
5
b. Express this fraction in lower terms: 50
Note: Find a common divisor that divides evenly into both the numerator and
denominator. As only 1 and 5 go into the number 5, it makes sense that you should
choose 5 to divide into both the numerator and denominator. Note that 5 factors evenly
into the denominator, 50, meaning that no remainder or decimals are left over.
Convert the fractions into Decimals
3
As well, imagine a retail world where the Spanish tiles dealer offers th off sale! It’s not
20
that easy to realize that this equates to 15% off. Or if you want to compare which one is
5 7
greater between 15 and 12 this can easily done after converting the fractions in decimal.
In other words, fractions are converted into decimals by performing the division
to make them easier to understand and compare.
Change the following into decimal
9
2 7 2
a)5 b)6 8 c)12 2
1
10

Rounding Principle
Your company needs to take out a loan to cover some short-term debt. The bank has
posted rate of 6.875%. The bank officer tells you that, for simplicity, she will just round
off your interest rate to 6.9%. Will you agree?
What this example illustrates is the importance of rounding. This is a slightly tricky
concept that confuses most students to some degree. In business math, sometimes you
should round your calculations off and sometimes you need to retain all of the digits to
maintain accuracy.
To round a number off, you always look at the number to the right of the digit being
rounded. If that number is 5 or higher, you add one to your digit; this is called rounding
up. If that number is 4 or less, you leave your digit alone; this is called rounding down.
For example, if you are rounding 8.345 to two decimals, you need to examine the
number in the third decimal place (the one to the right). It is a 5, so you add one to the
second digit and the number becomes 8.35.
For a second example, let’s round 3.6543 to the third decimal place. Therefore, you look
at the fourth decimal position, which is 3. As the rule says, you would leave the digit
alone and the number becomes 3.654.
NOTE.
Rounding Whole Numbers
Step 1 Locate the place to which the number is to be rounded. Draw a line under that
place.
Step 2 If the first digit to the right of the underlined place is 5 or more, increase the digit
in the place to which you are rounding by 1. If the digit is 4 or less, do not change.
Step 3 Change all digits to the right of the underlined digit to zeros
Example: Convert the following to decimals. Round each to four decimals or use the
repeating decimal notation.
1
6 4 4 3 7
a)13 b)9 c)11 d)22 e)5 10
27
PERCENTAGES
Your class just wrote its first math quiz. You got 13 out of 19 questions correct, or
13 /19. In speaking with your friends Johari and James, who are in other classes,
you find out that they also wrote math quizzes; however, theirs were different.
Johari scored 16 out of 23, or 16 /23, while James got 11 out of 16, or 11/ 16. Who
achieved the highest grade? Who had the lowest?
Since fractions are difficult to compare. Now expressing the grades in percentages, then
you scored 68%, Johari scored 70%, and James scored 69%. Notice you can easily
answer the questions now.
The advantage of percentages is that they facilitate comparison and comprehension
(understanding)
Converting Decimals to Percentages
A percentage is a part of a whole expressed in hundredths. In other words, it is a value
out of 100. For example, 93% means 93 out of 100, or 93 /100.
Formula: % (A decimal expressed as percent) = decimal number × 100(conversion
factor)
Example
1. Convert the decimal number 0.0875 into a percentage.
Note:
To convert any percentage back into its decimal form, you need to perform a
mathematical opposite. Since a percentage is a result of multiplying by 100, the
mathematical opposite is achieved by dividing by 100. Therefore, to convert 81% back
into decimal form, you take 81% ÷ 100 = 0.81.
%
That is, Dec=𝟏𝟎𝟎

COMPONENT OF PERCENTAGE PROBLEMS

Rate, Portion, Base
In your personal life and career, you will often need to either calculate or compare
various quantities involving fractions. For example, if your income is Tsh 1,300,000 per
month and you can't spend more than 30% on housing, what is your maximum housing
dollar amount?
𝒑𝒐𝒓𝒕𝒊𝒐𝒏
𝐑ate=
𝑩𝒂𝒔𝒆
Base is The Entire Quantity: The base is the entire amount or quantity that is of
concern. It represents a whole, standard, or benchmark that you assess the portion
against.
Portion is The Part of the Quantity: The portion represents the part of the whole.
Compare it against the base to assess the rate.
Rate is The Relationship: The rate is the decimal form expressing the relationship
between the portion and the base. Convert it to a percentage if needed by applying
Formula above. This variable can take on any value, whether positive or negative.
Example: Solve for the unknown in the following four scenarios.
1. Assume that your company has set a budget of $1,000,000. Your department
gets $430,000 of the budget. What is the relationship between your budget and
the company’s budget?
2. If your total income is $3,000 per month and you can't spend more than 30% on
housing, what is the maximum amount of your total income that can be spent on
housing?
3. Your manager tells you that 2024 sales are 102% of 2023 sales. The sales for
2024 are $1,487,003. What were the sales in 2023?
4. In Calgary, total commercial real estate sales in the first quarter of 2008 were
$1.28 billion. The industrial, commercial, and institutional (ICI) land sector in
Calgary had sales of $409.6 million. What percentage of commercial real estate
sales is accounted for by the ICI land sector?

PERCENTAGE CHANGE
It can be difficult to understand a change when it is expressed in absolute terms. A
percent change expresses in percentage form how much any quantity changes from a
starting period to an ending period.
Mathematically
𝑁𝑒𝑤 𝑣𝑎𝑙𝑢𝑒−𝑜𝑙𝑑 𝑣𝑎𝑙𝑢𝑒
Percentage change= × 100%
𝑜𝑙𝑑 𝑉𝑎𝑙𝑢𝑒

Note:
 OLD Value = The old or original quantity; the number that represents the starting
point
• NEW Value = The new or current quantity; the number to compare against the
starting point
To solve any question about percent change, follow these steps:
Step 1: Notice that there are three variables in the formula. Identify the two known
variables and the one unknown variable.
Step 2: Solve for the unknown variable using Formula above.
Examples:
1. In 1982, the average price of a new car sold in Canada was $10,668. By 2009,
the average price of a new car had increased to $25,683. By what percentage
has the price of a new car changed over these years?
2. Find Charles Peterson’s rate of change (R). Charles sold 30 homes last year
and 36 this year.
3. A company had sales of $200,000 this month and $160,000 last month. Find
both the amount of increase and the rate of increase

COMMISSION

Commission is an amount or a fee paid to an employee for performing or completing

some form of transaction.
The commission typically takes the form of a percentage of the amount of the
transaction.
Marketing and customer service industries use this form of compensation as an
incentive to perform: If the representative doesn’t sell anything then the representative
does not get paid.
Commission depends to the terms of agreement between employer and employee

Types of Commission.
Commission earnings typically follow one of the following structures:
 Straight Commission. If your entire earnings are based on your transactions
and calculated strictly as a percentage of the total, you are on straight
commission.
 Graduated Commission. Within a graduated commission structure, you are
offered increasing rates of commission for higher levels of performance. The
theory behind this method of compensation is that the higher rewards motivate
employees to perform better. An example of a graduated commission scale is
found in the table
 Salary Plus Commission. Earnings combines a basic salary together with
commissions amount.
Example
Josephine is a sales representative for Kraft Foods Canada. Over the past two weeks,
she closed $325,000 in retail distribution contracts. Calculate the total gross earnings
that Josephine earns if
a) She is paid a straight commission of 3.45%.
b) She is paid 2% for sales on the first $100,000, 3% on the next $100,000, and 4% on
all remaining sales.
c) She is paid a base salary of $2,000 plus a commission of 3.5% on all sales above
$100,000.

Ratio
A ratio is a fixed relationship between two or more quantities, amounts, or sizes of a
similar nature. For a ratio to exist, all terms involved in the ratio must be nonzero. A
Ratio must possess the following characteristics.
There Must Be Two or More Quantities.
A ratio does not exist if only one quantity is involved. For example, the fuel tank takes
60 litres of petrol. This is not a ratio, as there is no relationship to any other quantity,
amount, or size. On the other hand, if you compare your fuel tank to the fuel tank of
your friend you now have two quantities involved and could say that her fuel tank has
twice the capacity of yours.
All Terms Must Be of a Similar Nature.
All quantities, amounts, or sizes involved should be of the same unit. That is Kilograms
to Kilograms; in the production line, it is units to units. For a ratio to have meaning and
to be properly interpreted, all terms of the ratio must be expressed in a similar nature.
When you place different units such as kilometers and meters into the same ratio, the
result is confusing and will lead to misinterpretation of the relationship.
All Terms Must Be Nonzero. The numbers that appear in a ratio are called the terms
of the ratio. We cannot make comparison with something with zero quantity.
If we have a recipe with four cups of flour to one cup of sugar, there are two terms: four
and one. If any term is zero, then the quantity, amount, or size does not exist. For
example, if the recipe called for four cups of flour to zero cups of sugar, there is no
sugar! Therefore, every term must have some value other than zero.
Ratio Representation
Format Ratio example interpretation
To 4 to 1 Four cups of flour to one cup of sugar
: (colon) 4:1 Four cups of flour to one cup of sugar
Fraction 4/1 Four cups of flour per one cup of sugar
 decimal 4 Four times as much flour than sugar
Percentage 400% Flour is 400% of sugar

All of these formats work well when there are only two terms in the ratio. If there are
three or more terms, ratios are best expressed in the colon format. Example 4: 1: 2. The
fraction, decimal, and percent forms do not work with three or more terms.
Simplification and Reduction of Ratios
When you reduce ratios to lower terms, remember two important characteristics
involving the cardinal rule and integers:
1. The Cardinal Rule. The cardinal rule of algebra states, "What you do to one you
must do to the other." In other words, whatever mathematical operation is performed on
a term in a ratio must be equally performed on every other term in the ratio. If this rule is
violated then the relationship between the terms is broken.
2. Maintaining Integers. Integers are easier to understand than decimals and fractions.
In reducing a ratio to lower terms, aim to maintain every term as an integer.
The steps involved in reducing ratios to lower terms are listed below. You may not need
some steps, so skip them if the characteristic is not evident in the ratio.
Step 1: Clear any fractions that, when divided, produce a nonterminating decimal.
Apply the rules of algebra and multiply each term by the denominator being cleared
1
from the ratio. For example, if the ratio is 3∶ 2, the first term when divided produces a
nonterminating decimal. Clear the fraction by multiplying every term by the denominator
of 3, resulting in a ratio of 1:6.
Step 2: Perform division on all fractions that produce a terminating decimal. For
example, if the ratio is
2 3
∶ , both terms convert to terminating decimals, resulting in a ratio of 0.4: 0.3.
5 10

Step 3: Eliminate all decimals from the ratio through multiplication. In other words,
express the ratio in higher terms by multiplying every term by a power of 10. The power
of 10 you choose must be large enough to eliminate all decimals. For example, if the
ratio is 0.2: 0.25: 0.125, notice that the third term has the most decimal positions. A
power of 1,000 (103 ) ) is required to move the decimal three positions to the right.
Multiply every term by a power of 1,000, resulting in a ratio of 200: 250: 125.
Step 4: Find a common factor that divides evenly into every term, thus producing
integers. If you find no such factors, then the ratio is in its lowest terms. For example, if
the ratio is 10: 4: 6 it can be factored by dividing every term by 2, resulting in a ratio of
5: 2: 3. There is no common factor that reduces this ratio further; therefore, it is in its
lowest terms.
Examples:
9 3
Reduce the following ratios to their lowest terms: a.) 49: 21 b). 0.33: 0.066 c.)2 ∶ 11 d)
5⅛ : 6⅞

PROPORTION
A proportion is a statement of equality between two ratios. Just as we have both
expressions and equations, there are ratios and proportions. With ratios, only
simplification is possible. Proportions allows to solve for any unknown variable.
A proportion must adhere to three characteristics, including ratio criteria, order of terms,
and number of terms.
• Ratio Criteria Must Be Met. By definition, a proportion is the equality between two
ratios. If either the left side or the right side of the proportion fails to meet the criteria for
being a ratio, then a proportion cannot exist.
• Same Order of Terms. The order of the terms on the left side of the proportion must be
in the exact same order of terms on the right side of the proportion.
For example, if your ratio is the number of MP3s to CDs to DVDs, then your proportion
is set up as follows: MP3: CD: DVD = MP3: CD: DVD
• Same Number of Terms. The ratios on each side must have the same number of
terms such that every term on the left side has a corresponding term on the right side.
A proportion of MP3: CD: DVD = MP3: CD is not valid since the DVD term on the left
side does not have a corresponding term on the right side.
When you work with proportions, the mathematical goal is to solve for an unknown
quantity or quantities. In order to solve any proportion, always obey the following four
rules:
1. At Least One Value for Any Term Is Known.
At least one of the left side or right side values for each term must be known. For
example, x: 5 = y: 10 is not a solvable proportion since the corresponding first terms on
both sides are unknown.
However, 15: 5 = y: 10 is solvable since at least one of the first corresponding terms
(the 15 and the y) is known.
 2. One Pair of Corresponding Terms Must Be Known. At least one pair of
corresponding terms on the left side and right side must have both quantities known.
For example, 3: x: 6 = y: 4: z is not a solvable proportion since there is no pair of first
terms (3 and y), second terms (x and 4), or third terms (6 and z) that produces a pair of
known values. However, 3: x: 6 = 9: 4: z is a solvable proportion since the first terms on
both sides (the 3 and 9) are known.
3. Obey BEDMAS and Perform Proper Algebraic Manipulation. To manipulate a
proportion, you must satisfy the rules of BEDMAS. Violating any of these rules breaks
the equality of the ratios and produces an incorrect proportion.
4. Use the Fractional Format. The fractional format for ratios is recommended for
solving a proportion. The other four formats generally make solving the proportion much
more difficult, and the mathematical operations required become unclear.
There are four types of proportion:
i. Direct proportion
ii. Inverse proportion
iii. Compound proportion
iv. Continued proportion

Direct Proportion: When two quantities are directly related to each other that is,
increase in one quantity cause the increase in other quantity and the decrease in one
quantity cause the decrease in other quantity this is known as direct proportion.
For example, the amount of electric bill is directly proportional to the number of units
used. If more electric units are used, then the amount of bill is greater and if the less
electric units are used then the amount of bill is less.
Inverse Proportion: If two quantities are related to each other in a way that increase in
one quantity causes the decrease in other and the decrease in one quantity cause the
increase in other quantity this relation is known as inverse proportion.
For example, if a person is traveling and wants to cover the distance in the less time
faster the speed of car less time is required to cover the distance.
Compound Proportion: In some cases, we need to deal with more than one proportion
this mutual/joint relationship of proportion in such cases is known as compound
proportion.
Examples:
1. If 30 labors are required to construct a building in 90 days. How many labors are
required to construct the building in 45 days?
2. With the help of 40 workers a manufacturer decides to produce 200 units.
Workers work 6 hours in a day. If 60 workers can work 4 hours in a day then how
many units they can produce.
 3. If the cost of 20 dozens of eggs is $1200. Find the cost of 4 dozens of eggs.
4. A recent article reported that companies in a certain industry were averaging an
operating profit of $23,000 per 10 full-time employees. A marketing manager
wants to estimate the operating profitability for one of her company's competitors,
which employs 87 full-time workers. What is the estimated operating profit for
that competitor?

In finance, it is common to allocate funds according to a specific ratio this can be

conveniently done by dividing the total amount into equal parts. This can be illustrated
by the following examples.
1. Suppose a coca cola company allocate TZS 800,000,000 for advertising,
research and investment in the ratio 8:5:3. How much money will be located
for each?
2. A business spends $180,000 on advertising, $120,000 on research and
development $150,000 on office rent. Find the ratios between these
expenses.
3. A, B and C are partners in a firm. Their contributions are as follows: A
contributes T.shs100, 000,000. B contributes [Link] 80,000,000 and C
contributes Tshs.40, 000,000. They share profit according to the ratio of their
capitals. If total profit for a year is Tshs 6,600,000. Find out the share of each
partner.
4. If 15(2𝑥 2 − 𝑦 2 ) = 7𝑥𝑦. Find the ratio of 𝑥: 𝑦

PROFIT AND LOSS CONCEPTS

The price to be paid for buying an article is called the Cost Price (C.P) of that article and
the price obtained from the selling of an article is called Selling Price (SP) of that article.
Selling price is called Sale Proceeds or Turnover.
A business earn profit (gain) if S.P is greater than the cost price and suffers loss when
the C. P is greater than S.P or S.P is less than the C.P.
Therefore:
Profit (gain) =S.P- C.P (S.P>C.P)
Loss= C.P-S.P (C.P>S.P)

Total expenses involved in business are divided into two categories, namely direct cost
and indirect cost.
Direct cost: The cost of items for production, wages of labourers, price of machinery are
directly connected with the manufacture of goods. Direct cost is also known as Prime
cost.
Indirect cost: Are those cost which are not directly connected with the manufacture of
goods.
Example house rent, advertisement cost, electricity charges etc. They are also known as
overhead charges or overhead cost.
NOTE:
i). Unless otherwise stated, profit and loss are calculated as percentage of cost price

𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑓𝑖𝑡
ii) Percentage profit= × 100%
𝐶.𝑃

𝑇𝑜𝑡𝑎𝑙 𝑙𝑜𝑠𝑠
Percentage loss= 𝐶.𝑃 × 100%
In order to find the percentage profit/loss on S.P we are to take S.P instead of C.P in
above formula.
𝑦 𝑥𝑦
iii) y% of the quantity 𝑥= 𝑥 × 𝑦%=𝑥 × 100=100
5
Eg. 5% of 120,000 = 120,000× 100=600
iv) Selling price at a profit of 𝑥%=C.P× (100 + 𝑥)%

Eg. Find the S.P of an article at a profit of 5% whose C.P is Tsh360, 000/=
S.P= 360000× (100 + 5)% = Tsh378, 000
v) Selling price at a loss of 𝑥%= C.P (100-𝑥)%
eg Find the selling price of an article sold at a loss of 3% whose cost price is 300,000/=
=300000× (100 − 3)%=300000× 97 = 291000
Example 1:
i) By selling an article for Tsh 1,900,000/= a man suffers a loss of 5%. What is the cost
price of an article?

S.P C.P
95 100
1900000 ?
1900000×100
∴C.P= = 2,000,000/=
95
Example 2:
A shopkeeper bought goods for Tsh 350,000 and sold it for Tsh 392,000. Find his
percentage profit.

Example 3:
An article was sold at a profit of 15/% on the cost price. What is the percentage profit
on S.P?
𝑡𝑜𝑡𝑎𝑙 𝑝𝑟𝑜𝑓𝑖𝑡
Percentage profit= 𝑆.𝑃
× 100%
15 1
=115 × 100%=1323%
Example 4
A profit of 10% is made on the S.P of an article. What is percentage profit on the C.P.
Soln:
Let the selling price of the article be 100 tsh
10% of S.P= 10Tsh(i.e 10% of S.P)
 𝑡𝑜𝑡𝑎𝑙 𝑝𝑟𝑜𝑓𝑖𝑡 10 1
%profit= × 100%=90 × 100%=119 %
𝐶.𝑃

DISCOUNT:
A discount is a reduction in the price of a product.
Or. Discount is a deduction from the original price. The original price is also known as
List price or Marked price.
As a consumer, you are bombarded with discounts all the time. Retailers use various
terms for discounts, including sales or clearance.
If your business purchases a product from a supplier, any discount it receives lowers
how much the business pays to acquire the product.
When a business buys products, the price paid is the cost to the business. Therefore, a
lower price means a lower cost.
If your business is the one selling the product, any discount offered, lowers the selling
price and reduces revenue per sale. Since the revenue must cover all costs and
expenses associated with the product, the lower price means that the business reduces
profits per sale. In business, it is common practice to express a discount as a
percentage of the regular price
Types of Discounts
You will perform discount calculations more effectively if you understand how and why
single pricing discounts and multiple pricing discounts occur. Businesses or consumers
are offered numerous types of discounts, of which five of the most common are trade,
quantity, loyalty, sale, and seasonal.
Trade Discounts: A trade discount is a discount offered to businesses only based on
the type of business and its position in the distribution system (e.g., as a retailer,
wholesaler, or any other member of the distribution system that resells the product).
Consumers are ineligible for trade discounts.
Quantity Discounts: A quantity discount (also called a volume discount) is a discount
for purchasing larger quantities of a certain product.
Loyalty Discounts: A loyalty discount is a discount that a seller gives to a purchaser
for repeat business. Usually no time frame is specified; that is, the offer is continually
available.
Sale Discounts: A sale discount is a temporary lowering of the price from a product’s
regular selling price. Businesses put items on sale for a variety of reasons, such as
selling excess stock or attracting shoppers. You see such promotional events all the
time
Seasonal Discounts: A seasonal discount is a discount offered to consumers and
businesses for purchasing products out of season. At the business level, manufacturers
tend to offer seasonal discounts encouraging retailers, wholesalers, or distributors to
purchase products before they are in season. Before winter seasons or Christmas
seasons.
Single Discounts
Single Discount: N = L × (1 − d)
N is Net Price: The net price is the price of the product after the discount is removed
from the list price.
L is List Price: The list price is the normal or regular price of the product before any
discounts.
d is Discount Rate: The discount rate represents the percentage (in decimal format) of
the list price that is deducted.
The discount amount can be obtained by using any of the two formula
Discount Amount: D = L × d OR
Discount Amount: D = L – N
Where d is discount Rate:

Examples
1. Winners pays a net price of $27.50 for a winter jacket after receiving a retail
trade discount of 45%. What was the List price of the jacket?
2. A manufacturer that sells jeans directly to its retailer’s uses market research
to find out it needs to offer a 25% trade discount. In doing so, the retailers will
then be able to price the product at a list price of $59.99. What price should
retailers pay for the jeans?
Multiple Discounts
N = L× (1 − 𝑑1 ) × (1 − 𝑑2 ) ×... × (1 − 𝑑𝑛 ) where n is the nth discounts
The single discount equivalent rate is given by
𝑑𝑒𝑞𝑢𝑖𝑣𝑎𝑙𝑒𝑛𝑡 = 1−(1 − 𝑑1 ) × (1 − 𝑑2 ) ×... × (1 − 𝑑𝑛 )

Examples:
1. Eastern Restaurant Supply sells a set of mixing bowls with a list price of $200.
Suzi’s Muffins qualifies for the series of discounts: 25%, 20%, 10%. Compute the
net price using the discount method.

2. An advertisement claims that at 60% off, you are saving $18. However, today
there is an additional 20% off. What price should you pay for this item? What
percent savings does this represent?
3. A distributor sells some shoes directly to a retailer. The retailer pays $16.31 for a
pair of shoes that has a list price of $23.98. What trade discount percent is the
distributor offering to its retailers?
4. A retailer purchases supplies for its head office. If the retailer pays $16.99 for a
box of paper and was eligible for a 15% volume discount, what was the original
price for the box of paper?
5. Best Buy just acquired an HP computer for its electronics department. The net
price on the computer is $260.40 and Best Buy receives discounts of 40% and
38%.
a). what single discount is equivalent to the two discounts?
b). what is the list price?
c). what is the total discount amount?

6. If taxable merchandise of $60.39 is sold in a state with a 5% sales tax, what are
the amount of tax and the total amount to be paid?
7. A customer living in a state in which the tax rate is 7% went to a grocery store
and purchased a quart of milk for $1.15, a loaf of bread for $2.79, potatoes for
$2.25, and two taxable items—laundry detergent for $8.49 and fabric softener for
$5.30. What was her total charge at the checkout counter?
8. The town of Hilton assesses property at 75% of market value. The tax rate is
1.2%. A church has a total market value of $560,000. How much does the church
save each year by being exempt from property taxes?
CURRENCY CONVERSION
What is meaning of currency conversion?
It is a process in which a currency of one country is exchanged into the currencies of
other countries. Currency conversion/foreign exchange is essentially the price
measure of one currency against another. As the rate changes, one country's money
can become weaker or stronger against other currencies. For example, if the euro/U.S.
dollar conversion rate is 1.25, that means one euro can equate to $1.25 in American
currency.

How does foreign exchange work?

Foreign currency exchange converts one currency into another, but it's not usually in
a 1:1 ratio. Exchange rates change regularly based on the fluctuating global trade
markets. i.e The rate of exchange of different currencies is determined by forces of
demand and supply of currencies. Rate of exchange always varies with variation in the
supply and demand for various currencies.
When an international money transfer is made between accounts, the rate calculates
the difference based on the markets at that exact time.
The foreign exchange that involves conversion of one currency into another currency is
necessary because it enables individuals to conduct foreign or international trades. The
international trades are trades which are conducted between two or more countries. All
countries export and import goods. Tanzania's main exports are coffee, tea, cotton and
minerals. The main imports of Tanzania are machinery, industrial raw materials and
petroleum.

If a trader in Tanzania imports goods from U.S.A for example he/she is required to make
payment in U.S.A dollars. Similarly, when goods are exported to U.S.A Tanzania will
receive U.S.A dollars, but the exporter will be paid in Tanzanian shillings. In this case
the U.S.A dollars will be handed over to Central Bank of Tanzania (BOT). The following
table represents some of rate of exchange between Tanzanian shilling and foreign
currencies:
 BUY SELL
1U.S dollar 2160.00 2180.00
1Sterling Pound 3300 3400
1Euro 2300.00 2400.00
Ksh 20.50 21.00

Example 1:
A Tanzanian businessman imported goods worth U.S.A dollars 5,865. How many
shillings did he pay? If the rate of exchange is 1U.S dollar = TShs 2180.
Solution:
1U.S dollar = TShs 2180.
Therefore, $5, 865 = TShs 2180 x 5,865 = TShs 12, 785. 700

Example 2:
A Tanzanian exported goods worth TShs 17,794,000 to U.K. Calculate the value of
these exports in Sterling Pound. Use 1Sterling Pound = TShs 3300
Solution:
1Sterling Pound = TShs 3300
? = TShs 17,794. 000

Therefore, TShs 17,794. 000 =

= 5392.12 Sterling Pound:

Example 3:
An American tourist came to Tanzania with U.S $3870. He changed all his dollars to
Tanzanian shillings paying a bank charge of 1%. How many Shillings did he get? (1U.S
= TShs 2160)
Solution: 1U.S = TShs 2160 U.S $3870 = ?

So, U.S $3870 in Tsh =

= TShs 8,359,200
We should calculate the exact amount of charge (1%) that were paid to the bank i.e

1% of TShs x TSh8,359,200 = 0.01 x TSh8,359,200 = Tshs 83592

The amount the American tourist got after charges is:

TShs 8,359,200 - Tshs 83592 = Tshs 8275608

Example 4:
A German tourist arrived in Tanzania with Euros 4500. He changed all his Euros to
Tanzanian shilings paying a bank charge of 1%. He spent TShs 2,665,000 during his
stay in Tanzania.
And changed the remaining cash to Euro again how many Euros did he receive?
(buying: 1Euro
= TShs 2300 and Selling: 1Euro = TShs 2400)