General Mathematics: Applying Percentages in Various Contexts

This set of vocabulary flashcards covers concepts related to percentage changes, business math (profit, loss, mark-ups), inflation, and Value Added Tax (VAT) based on General Mathematics Lesson 1.3.

PEMDAS

An acronym representing the correct order of operations: Parentheses, Exponents, Multiplication, Division, Addition, and Subtraction.

Percentage Change

A measure that indicates the extent to which a quantity has increased or decreased in relation to its original value.

Percentage Increase

A positive percentage change indicating the value has grown from the original amount.

Percentage Decrease

A negative percentage change indicating the value has declined from the original amount.

Inflation

The general increase in prices of goods and services over time, which results in decreased purchasing power.

Rate of Inflation Formula

$$\frac{\text{Current Price} - \text{Previous Price}}{\text{Previous Price}} \times 100$$

Cost Price (CP)

The original price paid to acquire or produce a product.

Selling Price (SP)

The price at which a product is sold to customers.

Mark-up

The difference between the cost price and the selling price, typically added to cover overhead and profit.

Discount Price Formula

$$\text{Original Price} \times (1 - \text{Discount Rate})$$

Profit

The financial gain obtained when the selling price is higher than the cost price ($\text{SP} - \text{CP}$).

Loss

The financial deficit occurred when a product is sold for less than its cost price ($\text{CP} - \text{SP}$).

Value Added Tax (VAT)

A $12\%$ tax added to the price of goods and services in the Philippines that businesses remit to the government.

VAT-Inclusive Price

A price that already includes the $12\%$ Value Added Tax (VAT).

VAT-Exclusive Price

A price that does not yet include the $12\%$ Value Added Tax (VAT).

VAT-Exclusive Calculation

The formula used to find the base price from a VAT-inclusive amount: $\frac{\text{VAT-Inclusive Price}}{1.12}$

VAT Amount Formula

$$\text{VAT-Inclusive Price} - \text{VAT-Exclusive Price}$$

Profit Percentage (Based on Cost)

The formula to calculate profit as a percentage of the initial investment: $\frac{\text{Profit}}{\text{Cost Price}} \times 100$