Statistics and Mathematics-Part 5

GHANA INSTITUTE OF FREIGHT
FORWARDERS
Proficiency Certificate in Freight Forwarding
Statistics and Business Mathematics
Gabriel Essilfie
Gabriel Essilfie
Commission
• Some sales persons are allowed commission of a
fixed percentage on their sales made in a year or
month in addition to their salary. This serves as
a form of incentive.
• The values of the commission is usually

given as percentage of the sales.
example Gabriel Essilfie
• A sales girl is given a commission of 3% of sales made in a

month. If she made sales of GH¢500.00 in a month, what
is her commission?
• A bottle of soft drink costs GH¢4.00. The commission paid

for one bottle is 2% of the cost price. Find the commission
on 24 bottles of the soft drinks
• Florence Ainoo earns a salary of GH¢100.00 per month as

a sales girl. In addition to the salary , she given a
commission of 1.5% of whatever sales she makes in a
month. In January this year, she made sales of GH
¢7500.00. what was the total amount Florence earned at
the end of January.
• A trader received a commission of 12 % on sales made in a
month. His commission was GH¢35.00. find his total Sales
Gabriel Essilfie
Interest
Interest is the rent paid for the use of money. As
investors , people rent their savings for use by banks,
credit union and other financial institutions.
As borrowers, people and business firms rent money

from these same banks, credit unions etc to purchase
houses, cars and furniture. etc
The Amount charged for the use of this money is

called interest.
Gabriel Essilfie
Simple Interest
• This is interst on the amount invested or
borrowed at a given rate and for a given time.
• The money you deposit at bank is called a
Principal.
• NOW, total of the principal and and the interest
is called Amount ( Amt = Principal + Interest)
• Simple Interest (I) =

• =
Gabriel Essilfie
• Simple Interest (I) =

I=
• If I=, P, R or T can be made the subject
• T=
• R=
• P=
Gabriel Essilfie
exercises
• Q1. If P=GH¢200, R=5% and T=3years, find I
and the amount at the end of the period.
• Q2. A girl deposited GH¢300.00 at the bank at a

rate of 5% per annum for 3 years. Find the
simple interest. What is the amount at the end of
the third year ?
Gabriel Essilfie
• Q3. Find the simple interest on GH¢280 at 3½%

per annum for 6 months.
• 4. Calculate the simple interest on GH¢2600 at a

rate of 5% per annum for 2years.
• 5. The simple interest on GH¢450.00 for 4 years

is GH45.00. What is the rate of interest per
annum for 2 years ?
Gabriel Essilfie
• 6. Find the principal (amount saved) on which the

interest for 3 years at 5% per annum is GH¢90.
• 7. Find the time in which the interest on GH¢600 at

5% is GH¢ 90.
• 8. A sum of money is deposited in a bank at the rate

of 12½% per annum simple interest. In how many
years will the deposited money be doubled ?
Gabriel Essilfie
CLASS TEST
1. In how many years will GH¢10.00 amount to GH¢20.00 at 5% per
annum simple interest ?
2. in how many years will GH¢50.00 amount to GH¢75.00 at 12.5% per

annum simple interest ?
3. A man borrowed a sum of money from a bank at an interest rate of 12%.

After 1 year, he paid GH¢896,000.00 to settle the loan and the interest.
How much did he borrow from the bank ?
4. Mansa invested $100,000.00 at 5% simple interest per annum for 5
years. How much was her investment worth by the end of this period ?
5. A man invests GH¢50.00 at 20% simple interest for 4 years. How much
will his investment amount to at the end of this period ?
Gabriel Essilfie
Hire Purchase
• High purchase means making regular payments (usually
monthly) of an item that has been bought in instalments after
an initial deposit has been made.
• High purchase gives people who cannot afford immediate cash

payment for goods an opportunity to buy them.
• Usually the amount to be paid in installment attracts interest

(usually simple interest). Therefore the buyer pays more than
the cash price using hire purchase.
• The interest is paid on the balance payment.

Examples
Gabriel Essilfie
• Q1. Jones bought a car GH¢680.00 He later put it up for sale at GH¢
880.00. He agreed to sell it to Ruby under the following hire purchase
terms: An initial payment of 20% of the price and the balance paid at 15%
simple interest per annum to twelve monthly equal instalments. Calculate
a) the amount paid every month
b) the total amount Ruby paid for the car
c) the percentage profit Jones made on the cost price of the car.
• Q2. Mr. Amos bought a car for GH¢2,500.00 in 1985. He paid 40% of the
cost and paid the rest in equal monthly instalments. He took 8 years to
make full payment for the car. Interest was charged at 18% simple
interest. Calculate;
i) the monthly instalment
ii) the total amount he paid for the car
Iii) the percentage increase in the cost of the car.
Gabriel Essilfie
Exercise
• Q3. A rice retailer is allowed to pay GH¢11.60 for a bag of
rice or pay 6 daily installment payments of ¢3.96. How
much does the retailer save by paying in cash ?
• Q4. The cash price of a set of chairs is GH¢856. For hire

purchase price the amount is increased by 12%. Find the
difference between the cash price and the hire purchase.
• Q5. The hire purchase price for motor bike is GH¢540. if

this is to be paid in twenty equal monthly instalments,
what amount is paid in each each monthly instalment ?
Gabriel Essilfie
Financial Partnership (How Interest or Profit are Shared in Financial

Partnership)
• In financial Partnership, two or more people

come together to invest in a business with the
aim of making profit.
• Now, the Profits accruing from the investment

are usually shared in Proportional ratio to the
contributions of the partners.
Gabriel Essilfie
•You must have

some knowledge in
Ratios and Rates
Gabriel Essilfie
Proportional Division
• Proportional division is about sharing something in a
given ratio. The ratio tells you how to do the sharing. i.e
to divide something in a given ratio:
1. Find the total number of parts. The ratio x:y gives (x+y)
parts
x:y:z gives (x+y+z) parts and so on..
2. Find what one part is. Thus the part corresponding to x,

y or z. the share corresponding to x can be found by using
the fraction, similarly, the share corresponding to y is
given by the fraction etc
Gabriel Essilfie
1. A man divides his 360 cattle between his sons in the

ratio 7:6:5. Find the smallest share.
2. A green paint is mixed from blue and yellow paint in

the ratio 3:5. how much of each colour is needed to
make 40 litre of this green paint?
3. Three partners Ali, John and Ama invested GH25,000,

GH¢15,000, and GH¢35,000 respectively in a joint
venture. If they shared GH¢150,000.00 in the ratio of
their investments, how much did each receive?
Gabriel Essilfie
• Peter and john invested GH¢120.00 and GH

¢1800 respectively into a business. How much
should they share a profit of GH¢30.00, if they
agree to share it in proportion of their
investments.
Gabriel Essilfie
• Three friends Ato, Oko and Edem entered into a

partnership. They contributed GH¢300, GH¢240
and GH¢360 respectively. It was agreed that
profits will be shared in proportion to their to
their contributions. After one year of operation
the profit made was GH¢270.00
• 1. Find the amount received by each partner as
their share of the profit.
• 2. Express Edem’s share of the profit as a
percentage of his investment
Gabriel Essilfie
VAT-Value Added Tax

• This is a tax charged on goods and services. The
rate of VAT is usually given in percentages and it is
added to the basic cost. If the VAT rate is x%, then
the VAT is given by
1. VAT =x Basic Cost
2. VAT =x VAT inclusive cost
3. NB: the basic cost (i.e VAT exclusive cost is
equivalent to 100% and VAT inclusive cost is
equivalent to 100+x.)
4. The basic cost is the cost of the item without VAT.
Gabriel Essilfie
List some goods and services that attract

VAT
Remember Ghana VAT rate is 12.5% since 2018.
Gabriel Essilfie
Trials
The VAT rate of a country is 12.5%. A bill of GH
¢97.00 VAT inclusive was given to a Mr. Jones
Komla after eating at a restaurant. Calculate the
VAT component of the bill.
Gabriel Essilfie
Banking
• Banking occupies an important place in the
development of the economy. It also plays an a
pivotal role in the freight business.
• Banks have different Schemes;

• Current Account
• Saving Account
• Fixed Deposit accounts.
Gabriel Essilfie
Banking
• Current Account; A current account is that deposit
in which clients may deposit or withdraw money
any number of times in a day. Generally, the
business community will have such account to help
them easy their way of doing business. A small or
no rate of interest is allowed on current accounts.
• Saving Account: In savings accounts, an investor is
free to deposit or withdraw small or big amount as
and when required.
• Fixed Deposit accounts.

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GHANA INSTITUTE OF FREIGHT

Statistics and Business Mathematics

• The values of the commission is usually

• A sales girl is given a commission of 3% of sales made in a

• A bottle of soft drink costs GH¢4.00. The commission paid

• Florence Ainoo earns a salary of GH¢100.00 per month as

As borrowers, people and business firms rent money

The Amount charged for the use of this money is

• Simple Interest (I) =

• Simple Interest (I) =

• If I=, P, R or T can be made the subject

• Q2. A girl deposited GH¢300.00 at the bank at a

• Q3. Find the simple interest on GH¢280 at 3½%

• 4. Calculate the simple interest on GH¢2600 at a

• 5. The simple interest on GH¢450.00 for 4 years

• 6. Find the principal (amount saved) on which the

• 7. Find the time in which the interest on GH¢600 at

• 8. A sum of money is deposited in a bank at the rate

2. in how many years will GH¢50.00 amount to GH¢75.00 at 12.5% per

3. A man borrowed a sum of money from a bank at an interest rate of 12%.

• High purchase gives people who cannot afford immediate cash

• Usually the amount to be paid in installment attracts interest

• The interest is paid on the balance payment.

• Q4. The cash price of a set of chairs is GH¢856. For hire

• Q5. The hire purchase price for motor bike is GH¢540. if

Financial Partnership (How Interest or Profit are Shared in Financial

• In financial Partnership, two or more people

• Now, the Profits accruing from the investment

•You must have

2. Find what one part is. Thus the part corresponding to x,

1. A man divides his 360 cattle between his sons in the

2. A green paint is mixed from blue and yellow paint in

3. Three partners Ali, John and Ama invested GH25,000,

• Peter and john invested GH¢120.00 and GH

• Three friends Ato, Oko and Edem entered into a

VAT-Value Added Tax

List some goods and services that attract

• Banks have different Schemes;

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