# Entrepreneurship Section 2.2 -- Part II

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## Presentation Transcript

### 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