PERCENTAGES : Chapter 2 Slide 1 PERCENTAGES Growth rates
Interest earned
Interest payments
Exact interest method
Ordinary interest method
Markups and markdowns
Discounts
Due dates
Last day for discount
Percentages : Chapter 2 Slide 2 Percentages Percent calculations are used in many business applications
They are particularly important in calculating growth rates, interest payments, markups and markdowns
Remember that percent means per hundred
Percentages : Chapter 2 Slide 3 Percentages To convert percentages to decimals, shift the decimal point two spaces to the LEFT
To convert a decimal to a percentage, shift the decimal point two spaces to the RIGHT
Growth Rates and Sales Growth : Chapter 2 Slide 4 Growth Rates and Sales Growth To calculate sales growth, sales for one period are compared with sales in a different period.
Average Monthly Growth Rate : Chapter 2 Slide 5 Average Monthly Growth Rate To determine the average monthly growth rate, you must obtain an average using the total monthly growth and the number of months for which you have data
Using Math to Project Sales : Chapter 2 Slide 6 Using Math to Project Sales To determine projected sales multiply a months sales by the average growth rate
Sales x average growth rate= $ increase
Add increase to the past months sales to come up with projected sales for next month
Mark Ups and Markdowns : Chapter 2 Slide 7 Mark Ups and Markdowns A markup is an amount added to the cost price to determine a sales price
Markups allow you to cover expenses and earn a profit
A markdown is an amount deducted from the retail price to determine the sales price
Discounts : Chapter 2 Slide 8 Discounts A discount is a reduction in the retail or wholesale price of a product or service
Employees might get discounts at their place of employment
Businesses might get discounts on orders if placed within certain time period
Retail price x percent of discount= discount price
Last Day for Discounts : Chapter 2 Slide 9 Last Day for Discounts Sometimes a business will offer a discount to encourage early payment of an invoice
Discounts are written on invoice like
“2/10, net 30”
“a 2% discount may be taken if the invoice is paid within 10 days, if no discount is taken the payment is due in 30 days