INSTITUTE OF ACCOUNTANCY ARUSHA

INTRODUCTION TO BUSINESS MATHEMATICS AND STATISTICS

ODA1, ODFB1, ODA-IT1, ODIRM1, ODEF1 ODMPR 1 2024/2025

1.TUTORIAL SET 2

1. Find the increased amount and the new salary if your employer is going to give you a 5% increase
on your current salary of $48,000.
2. The hardware store is selling a power washer for $208.95. This current price is 4.5% higher than
the price for the same power washer last year. What was the price of power washer last year?
3. What is the new price of a $3515 sofa after a 40% decrease in price?
4. Find the percent decrease if you are paid $ 1418 for an order whose original cost was 1470.
5. An item with a list price of $125.64 is offered at a discount of 37.5%. What is the net price?
6. A 17.5% discount on a flat-screen TV amounts to $560. What is the list price?
7. Golf World sells a set of golf clubs for $762.50 below the suggested retail price. Golf World claims
that this represents a 62.5% discount. What is the suggested retail price (or list price)?
8. A 16% discount allowed on a flash drive amounted to $14.82. What was the net price?
9. A store advertises a discount of $44.75 on a pair of running shoes. If the discount is 25%, for how
much were the running shoes sold?
10. The net price of a pair of hockey skates after a discount of 3% is $355. What is the list price?
11. The net price of an article is $63.31. What is the suggested retail price (the list price) if a discount
of 35% was allowed?
12. A mountain bike listed for $975 is sold for $820. What rate of discount was allowed?
13. A home theatre system listed at $1136 has a net price of $760. What is the rate of discount?
14. An infrared barbeque grill was originally listed at $769.99. The price was first discounted to
$550.54, followed by a final discounted price of $449.79. What was the single equivalent rate of
discount at the final price?
15. In the original online ad, a specialty coffeemaker was listed at a price of $399.99. To promote
business to a retailer, the appliance was offered at “$120 off” if five or more items were purchased
at the same time. If a buyer purchased within three days, a further $42 discount off the price was
allowed. Compute the net price and the single equivalent rate of discount if a buyer took advantage
of both offers.
16. A camera is listed for $599 less 30%, 20%, and 5%.
 a) What is the net price?
b) What is the total amount of discount allowed?
17. A mobile phone is listed for $174 is subjected to a series discount of 15%, 10%, and 8%.
a) What is the net price?
b) What is the total amount of discount allowed?
18. A home gym is listed for $786.20 less 36%, 10%, and 2%.
a) What is the net price?
b) What is the total amount of discount allowed?
19. A racing bike is listed for $1293.44 less 181 3%, 91 9%, and 3%.
a) What is the net price?
b) What is the total amount of discount allowed?
20. An item listed by a wholesaler for $750 less 20%, 5%, and 2% is reduced at a clearance sale to
$474.81. What additional rate of discount was offered?
21. An office desk listed at $440 less 25% and 15% is offered at a further reduced price of $274.89.
What additional rate of discount was offered?
22. Arrow Manufacturing offers discounts of 25%, 12.5%, and 4% on a line of products. For how much
should an item be listed if it is to be sold for $113.40?
23. What is the list price of an article that is subject to discounts of 33%, 10%, and 2% if the net price
is $564.48?
24. Bakhresa advertises Azam Juice listed at $125 per bucket at a discount of 24%. A nearby
competitor offers the same type of juice for $87.40 per bucket. What additional rate of discount
must Bakhresa give to meet the competitor’s price?
25. Canadian Wheel received an invoice dated May 13 with terms 2/10, n/30. The amount stated on
the invoice was $2499.
a) What is the last day for taking the cash discount?
b) What is the amount due if the invoice is paid on the last day for taking the discount?
26. An invoice was received for $6200 dated June 21 with terms 2/10, n/30.
a) What is the last day for taking the cash discount?
b) What is the amount due if the invoice is paid on the last day for taking the discount?
27. Triton Company received an invoice for $842 dated March 9 with terms 5/10, 2/20, n/60.
a) If the invoice is paid on March 19, how much is to be paid?
b) If the invoice is paid on March 27, how much is to be paid?
c) If the invoice is paid on April 3, how much is to be paid?
28. Manual Company received an invoice for $2412 dated January 22 with terms 3/15, 1/30, n/60.
a) If the invoice is paid on January 31, how much is to be paid?
b) If the invoice is paid on February 20, how much is to be paid?
c) If the invoice is paid on March 22, how much is to be paid?
29. A Tanzanian businessman imported 25,000 watches from Dubai (U.A.E) at a cost 20 UAE Dirhams
per watch. He also incurred the following additional expenses. Custom duty in T.sh of 20%,
TSh.3,075,000/= Freight and Tsh.4510,000/= insurance charges. Calculate a)
Total cost of the consignment in Tanzanian Shilling.
b) Selling price per Watch if profit per watch is 25% on cost in Tanzania.

30. John borrowed Tsh 6,000,000? = from his friend Jensen. Their agreement was that because the
buying capacity of Tazanian shillings decreases rapidly, John must pay back the money in U.S
dollars. How much U.S dollar will be paid?

31. Mr. Robert received 6000 U.S. dollars from his uncle who is in U.S.A, when he was in Kenya. He
converted this amount of money in Kenyan shillings. He then travelled to Tanzania where he had to
change his Kenyan money into Tanzanian shillings. If he exchanged in the rate of 1 U.S dollar to
82 Ksh and in Tanzania, he converted his money at the rate of 1Ksh to 20.5 Tanzanian Shillings.
How much did he lose if he could have converted his money straight from U.S dollars to Tanzanian
Shillings at the rate given in the table above?
32. Divide Rs. 80000 in the ratio 2: 6
33. Write 120: 200 in the simplest form.
34. Rs. 5,00,000 profit is earned from business by four partners. This profit is to be allocated to the
four partners in the ratio 5: 8: 9: 3. Determine the amount of profit of each.
35. Express 58.5% to a common fraction.
36. Solve for 𝑥 in each case 4 ∶ 8 = 𝑥 ∶ 50 and 2 ∶ 40 = 10 ∶ 𝑥.
37. Convert 77.87% and 24 1 5 % into decimal and common fraction.
38. Amani spends 80% of his income and saves 𝑅s. 600. What is his total income?
39. Two brothers, Mayeso and Khoza earn K80,000 and K150,000 respectively as salaries per month.
The brothers come from a saving culture and Mayeso saves K25,000 while Khoza saves K30,000
per month. Who between the two brothers has a greater savings to salary ratio?
40. Akwawo, Bvuto and Chatha form a business. They agree to share profits in the ration 4:3:1
respectively and at the end of the year they make total sells of K457,820. If their total cost was
K250,000 how much does each receive?