Objective: By the end of this lesson, students will understand the fundamental concepts of commercial mathematics, including profit and loss, discount, simple interest, and compound interest.
Lesson Outline:
1. Introduction to Commercial Mathematics
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Definition and real-life applications
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Importance in daily life and business transactions
2. Profit and Loss
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Concept of Cost Price (CP) and Selling Price (SP)
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Formulae:
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Profit = SP - CP
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Loss = CP - SP
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Profit Percentage = (Profit / CP) × 100
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Loss Percentage = (Loss / CP) × 100
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Practical Examples and Word Problems
3. Discount
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Definition of Marked Price and Selling Price
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Formula:
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Discount = Marked Price - Selling Price
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Discount Percentage = (Discount / Marked Price) × 100
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Real-life Applications (e.g., shopping, sales, and business deals)
4. Simple Interest (SI)
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Definition and Formula:
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SI = (P × R × T) / 100 where P = Principal, R = Rate of Interest per annum, T = time in years
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Practical Examples from Banking and Finance
5. Compound Interest (CI)
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Definition and Formula:
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CI = P(1 + R/100)^T - P
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Difference between Simple Interest and Compound Interest
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Applications in Banking and Investments