We learned about the computation of profit and loss in purchasing and selling products up to Class 7 and how to compute its percentage. Now, in Chapter 13 of Class 8, we'll look at some additional profit-and-loss situations. At the end of the chapter, we will also discuss the notion of discounts in purchasing and selling items and Value Added Tax (VAT). The chapter includes the concepts of applications of compound interest formula, the concept of compound interest, the concept of discount, the concept of percent and percentage, concept of principal, interest, amount and simple interest, the concept of ratio, the concept of cost price, selling price, total cost price.
Cost Price (CP): A cost price is an amount paid for a product or commodity to purchase it. Also abbreviated as CP. This cost price is further subdivided into two categories:
Price of Sale (SP): The amount for which the product is sold is referred to as the Selling Price. It is commonly abbreviated as SP and is also known as a sale price.
The chapter also teaches the students the profit and loss formulas. Profit or gain equals selling price minus cost price. The loss is equal to the cost price, less the selling price. Further, in Maths Chapter 13, Profit, Loss, Discount and Value Added Tax (VAT) deals with profit and loss, discount, estimation in percentages, increase or decrease as percentages, sales tax, value-added tax, goods and service tax. The chapter also contains the problems based on the concepts of VAT and profit and loss combined.