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Grade 10 Notes On Social and Commercial Arithmetic

Grade 10

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1K views5 pages

Grade 10 Notes On Social and Commercial Arithmetic

Grade 10

Uploaded by

Oscar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SIKONGO BOARDING SECONDARY SCHOOL

DEPARTMENT OF MATHEMATICS AND COMPUTER STUDIES

MATHEMATICS 4024

REVISIONS NOTES ON SOCIAL AND COMMERCIAL ARITHMETIC

___________________________________________________________________________

1. Social and Commercial Arithmetic

This is the kind of mathematics used in daily life and business to make informed
decisions regarding financial and commercial activities.

(a) Investment
This is the act of allocating money or resources with the expectation of generating future
return or income.
(b) Shares
This is the unit of ownership in a company or financial asset.
(i) Dividend
This is a portion of a company’s earnings that is distributed to its shareholders.
Dividend is calculated as follows:
Dividend

Or

Or

(ii) Nominal value


This is the original price of a share.
(iii) Market value
This is the price at which a share is bought or sold according to the market. In
other words, market value refers to the current price at which an asset or a
company can be bought or sold in the open market. It reflects what buyers are
willing to pay for an asset and what sellers are willing to accept.
(iv) Preference shareholders
These are investors who own preferred shares in a company.
(v) Ordinary shareholders
These are individuals that own common shares in a company. They are also
known as common shareholders.

Examples as extracted from ECZ past papers


1. The dividend on 1 000 shares at the end of a financial year is K2 250.00. If the annual
dividend rate is 3% of the share value, calculate the value of each share. [2016 p1 ]
2. Maphone Manufacturing Company paid a total dividend of K12 600.00 at the end of
2015 on 600 shares. If Magula owned 200 shares in the company, how much was paid
out in dividends to her? [2017 p1 gce]
3. A businessman bought 300 company shares at K60.00. The nominal price was
K30.00. How much does he pay for the shares? (2017 p1)
4. Ngwezi invested K14 500.00 in a business firm. The condition was that if she left her
shares in the firm for 12 months, a profit of 5% would be added to her shares. How
much will she get at the end of 12 months? [2018 p1 gce]
5. Floyd had 125 shares in a company. At the end of a financial year, the company
declared a dividend of K3.00 per share. How much was due to Floyd? [2018 p1]
6. A company declared a dividend of K1.50 per share. Musalala has 600 shares in the
company. How much will she get? [2019 p1]
7. A company’s working capital consists of 450 10% preference shareholders of K50.00
each and 700 ordinary shares of K10.00 each. After 6 months, the company declared a
dividend of K5 750.00. How much dividend will be paid to each ordinary
shareholder?[2019 p1 gce]
8. Mrs. Kalomba bought 120 shares at a nominal value of K40.00 each. She later sold
at K42.50 each. Find her profit. [2020 p1 gce]
9. A woman has 500 company shares with a nominal value of K70.00 each which she
bought at K30.00 each. How much did she pay for the shares? [2020 p1]
10. At the end of the financial year, a public limited company declared a dividend. An
investor with 1500 shares in the company received K750.00. What was the dividend
per share? [2021 p1 gce]
11. A company sells shares at K1.30 per share. A businesswoman had K9 100.00 to buy
shares. How many shares did she get? [2021 p1]
12. A company declared an annual dividend of 6%. The value of each share is K25.00.
Mr. Mapesa has 500 shares. Find his annual dividend. [2022 p1 gce]
13. A company declared a dividend of K 2.75 per share. A businessman invested 560
shares in the company. How much dividend did he get? [2022 p1 ]
14. Paul invests K50 000.00 in a government bond at 9% simple interest per annum. How
much will the bond be worth after 3 years?[2023 p1 gce]
15. A sugar company paid K362 400.00 as dividend for 1 200 shares. A man had 20
shares in the company. Calculate the amount paid to him.[2023 p1]
Suggested Solutions
1.

Share value

2. Dividend

K12 600

3. Amount paid

4.

Amount after 12 months

5. Dividend = number of shares × dividend per share

6. Dividend = number of shares × dividend per share

7. Preference dividend

Ordinary dividend
Dividend per Ordinary shareholder

8. Profit per share = value sold – nominal value


= k42.50 – k40
= k2.50
Total profit = 120 × k2.50
= k300
9. Amount paid = number of shares × market value
= 500 × k30
= k15 000

10.

11. No. of shares

12. Annual dividend

13. Dividend
Dividend
Dividend
14.

Therefore, Bond

15. Dividend per share

Amount paid to him=K302

Prepared by Mr. Nchimunya , D.M

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