Topic 13: Business Arithmetic – Sample Activity

Zalpha hardware buys cement from Hima factory at UGX 25,000 per bag and sells it at UGX 33,000. The owner spends 1% of the profit to pay commission to his salesmen and 4% to the insurance company.

He intends to secure a loan of UGX 10,000,000 from the bank at a simple interest rate of 12% for 5 years. He is seeking advice on whether he will be able to pay the loan after the 5 years using the remainder of his profit. The hardware sells 1000 bags of cement per year. Loss, Commission, Discounts and Insurance.

Task: Help the owner of the hardware to find out if he should secure the loan.

Remember

Topic Summary

In this topic, you have learnt how to:

• describe and calculate profits (include all expenses incurred), loss, commission, interest, insurance and discount
• express profit and loss as a percentage
• solve simple interest problems