Notes: Money | Mathematics & Pedagogy Paper 1 for CTET & TET Exams - CTET & State TET PDF Download

Use of Money

Imagine you have a delicious cake that you made. You really want a new toy, but the toy maker doesn't want your cake. With money, you can sell your cake to anyone who likes it and get money in return. Then, you can use that money to buy the toy from the toy maker. Money makes it easier for us to get what we want, even if others don't want what we have. That's why money is important in our lives.

Different countries use different currencies. Indian currency is known as rupees.

Some coins we use in India:
Coins in India

Some notes we use in India:

Note currency in India

In India, the currency is rupees and paise.

• In short form, rupees is written as ₹ and paise as p. 
• 100 paise = ₹1.
• Money that exceeds ₹1 is expressed in rupees.

Conversion of Rupees into Paise and Paise into Rupees

Example:

₹ 1 = 100 paise,  Then
₹ 2 = 2 × 100 paise = 200 paise
₹ 3 = 3 × 100 paise = 300 paise,
₹ 4 = 4 × 100 paise = 400 paise

Below are some of the rules for the conversion of rupees into paise and vice versa.

Rule 1: 

To change an amount in ‘rupees’ and ‘paise’ into paise we multiply the number of rupees by 100 and add it to the number of paise.

Example 1: Convert 35 rupees 25 paise into paise.

Sol: 35 rupees 25 paise = (35 × 100) paise + 25 paise
= 3500 paise + 25 paise
= 3525 paise

Rule 2: 

To convert an amount given in rupees into paise, we remove the symbol of ₹ and the point and write paise.

Example 2: Convert the following amounts into paise.
(a) ₹ 41.25
(b) ₹ 106.50
(c) ₹ 0.25

Sol: (a) ₹ 41.25 = 4125 paise
(b) ₹ 106.50 = 10650 paise
(c) ₹ 0.25 = 25 paise

Rule 3: 

To convert an amount given in paise into rupees, we put a point after two digits from the right of the given number showing paise. The number on the left of the point gives the number of rupees and that on the right gives paise.
Conversion of rupees into paise and vice versa

Example 3: Convert the following into rupees.
(a) 4535 p
(b) 9p
(c) 505 p

Sol: (a) 4535 p = ₹ 45.35
(b) 9p = ₹ 0.09
(c) 505 p = ₹ 5.05

Addition of Money

Some practical situations involve addition of money. To find the total amount we write one amount under the other such that the point is exactly under the point and add as ordinary numbers.

Example 4: Add ₹ 217.31 and ₹ 335.46.

Thus, ₹ 217.31 +  ₹335.46 = ₹552.77

Subtraction of Money

Some practical situations involve the subtraction of money. To find the difference we write one amount under the other such that the point is exactly under the point and subtract as ordinary numbers.

Example 5: Subtract ₹127.56 from ₹579.86.

Thus, ₹579.86 – ₹127.56 = ₹452.30.

Multiplication of Money by a Number

Some practical situations involve the multiplication of a sum of money expressed by a number using a point. To find the product we multiply in the usual way and put the point two places from the right.

Example 6: Find ₹312.97 × 3.

Sol: We have
31297 × 3 = 93891₹312.97 × 3 = ₹938.91
Thus ₹312.97 × 3 = ₹938.91.

Division of  Money by a Number

Divide the amount given by the given whole number, taking the amount as an ordinary number. Put a decimal point after 2 digits from the right in the quotient.

Example 7: Divide ₹22750 by 14.

Thus, the quotient is ₹1625.

Example 8: Divide ₹115.15 by 7

First divide 11515 by 7₹11515 ÷ 7 = 1645
Hence, ₹115.15 ÷ 7 = ₹16.45

Estimating Money

At times, we do not need to know the exact amount of money, but we need to get an idea of the cost. To find it, we round off the amount to the nearest rupee. This is called the estimation of money.

Example 13: Round off the following to the nearest rupee:
(a) ₹523.96
(b) ₹684.35

Sol: (a) ₹523.96 = ₹524 (Rounding 96 p to the nearest hundred, we get 100 p or ₹1.)
₹523 + ₹1 = ₹524

(b) ₹684.35 = ₹684 (Rounding 35 p to the nearest hundred, we get 0 p. This can be taken as ₹ 0.)
₹684 + ₹0 = ₹684

Estimating Sum and Difference

Many times we need to estimate the sum or difference between the costs of two things. This is done by rounding the cost to the nearest rupees and then adding or subtracting it as required.

Example 14: Estimate the following by rounding off to the nearest rupee.
(a) ₹112.86 + ₹39.63
(b) ₹52.11 – ₹12.75

Sol: (a) ₹112.86 + ₹39.63 = ₹113 + ₹40 = ₹153
(b) ₹52.11 – ₹12.75 = ₹52 – ₹13 = ₹39

Introduction

Profit and loss are expressions utilized to determine whether a transaction is advantageous or not. These terms are commonly used in our everyday experiences. If the selling price surpasses the cost price, the gap between them is termed profit. Conversely, if the selling price is less than the cost price, the difference is known as a loss. The amount at which an item is bought is referred to as its cost price, while the amount at which it is sold is termed its selling price. This article will delve further into the concepts of profit and loss.

Profit and Loss Related Terms

Profit and loss are words we use to figure out if a deal is good or not. We hear these words a lot in our daily lives. If the selling price is more than the cost price, we call it a profit. If the selling price is less than the cost price, we call it a loss. The cost price is what we pay to buy something, and the selling price is what we get when we sell it. Let's learn more about profit and loss in this article.

Cost Price

The price at which an article is purchased is called its cost price. For example, if Neil bought an umbrella for Rs. 100, this is the cost price of the umbrella. It is abbreviated as C.P.

Selling Price

The amount at which something is sold is called its selling price. For instance, if Ramesh sells an umbrella for Rs100, then Rs.100 is the selling price of the umbrella. We often use the abbreviation S.P. to represent the selling price.

Profit

When, in a transaction, the selling price is greater than the cost price, it means we earn a profit. Using the above example, the profit that Neil earned is ₹2. It is calculated with the help of the formula: Profit = Selling price - Cost price. In the above example, the Cost price of the umbrella was ₹8 and the Selling price of the umbrella was ₹10, so the profit that he made can be calculated by using the formula: Profit = Selling price - Cost price. Substituting the values, we get, Profit = 10 - 8 = 2. Therefore, he makes a profit of ₹2.

Loss

When, in a transaction, the cost price is greater than the selling price, it means we incur a loss. For example, if a bag is bought for ₹20 and it is sold for ₹17, it means we incurred a loss of ₹3 in this transaction. Loss is calculated with the help of the formula: Loss = Cost price - Selling price. Taking the same example, the Cost price of the bag is ₹20 and the Selling price is ₹17, so the loss can be calculated with the formula: Loss = Cost price - Selling price. Substituting the values, we get, Loss = 20 - 17 = 3. Therefore, there is a loss of ₹3 in the transaction.

Marked Price

Tagged price is the amount the seller puts on the label of the item. It's the cost before a discount. When a discount is given on the tagged price, the reduced amount at which the item is sold is called the selling price.

Example: Sandra goes shopping at a store where everything is at a 50% discount. The price tag on a dress is ₹ 120. This means that the Tagged Price of the dress before the discount = ₹ 120.

Discount

To cope with the competition in business and boost the sale of goods, shopkeepers offer discounts to customers. The rebate or the offer given by the shopkeepers to lure the customers is called a discount. Discount is always calculated on the Marked price of the article.
Discount = Marked Price - Selling Price
Discount (%) = (Discount/Marked Price) × 100

If the marked price of an article is $600, and there is a 40% discount on it, this means that the customer can buy the article at the following price:

40% discount on marked price = (40/100) × 600
Discount ($)= 24000/100 = $240

Therefore, Selling Price = Marked Price - Discount ($) = $600 − $240 = $360

Profit and Loss Formulas

Now, let us learn the formulas for calculating profit and loss.

Profit Formula

When the selling price of an item is higher than its cost price, it means there is a gain in the transaction. The simple formula used to calculate the profit is: Profit = Selling Price - Cost Price.

Loss Formula

If the price at which something is sold is lower than what it cost, there is a loss in the deal. The simple formula for figuring out the loss is: Loss = Cost Price - Selling Price.

Let us use these formulas and find the profit or loss in a few scenarios.

Profit and Loss Percentage

The profit percentage (%) or loss percentage (%) is calculated with the help of the following formulas, which show that the profit or loss in a transaction is always calculated on its Cost Price:

Example: If the CP of a commodity = ₹800 and SP = ₹900, then let's find the profit (%).
Sol: Profit = SP - CP
= 900 − 800 = ₹100
Profit (%) = (Profit/CP) × 100
= (100/800) × 100
= 12.5%

Important Notes

Given below are some of the important notes related to profit and loss that we studied in this article. Have a look!

• Profit = SP - CP
• Loss = CP - SP
• Profit (%) = {Profit/CP} × 100
• Loss (%) = {Loss/CP} × 100
• Discount = Marked Price - Selling Price
• Discount (%) = (Discount/MP) × 100