Commercial Arithmetic 1
14 Grade 10 Essential Mathematics questions on Commercial Arithmetic 1, with worked marking schemes. 14 questions are available on this topic in full.
Question 1
1 markA bicycle in a shop in Kitale is marked KSh 12,000. The shopkeeper allows a discount of 15% on the marked price, and gives a further KSh 300 off to any customer who pays in cash. How much does a customer who pays cash part with?
A. KSh 10,200
B. KSh 10,500
C. KSh 9,900
D. KSh 13,500
(1 mark)
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1 markA sacco pays compound interest at 10% per annum, compounded annually. Calculate the amount that a deposit of KSh 20,000 grows to after two years.
A. KSh 22,000
B. KSh 24,000
C. KSh 4,200
D. KSh 24,200
(1 mark)
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1 markA grocer in Machakos bought a sack of potatoes for KSh 2,500. Some of the potatoes went bad, and he sold the whole sack for KSh 2,200. Calculate his percentage loss.
A. 13.6%
B. 113.6%
C. 12%
D. 88%
(1 mark)
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4 marksA television set has a cash price of KSh 32,000. Under a hire purchase agreement a buyer pays a deposit of KSh 8,000 followed by 18 monthly instalments of KSh 1,600 each. Calculate the hire purchase price and express the extra amount paid as a percentage of the cash price.
(4 marks)
Marking scheme
Total instalments = ,600 = KSh 28,800 (1 mark); hire purchase price = 8,000 + 28,800 = KSh 36,800 (1 mark); extra amount paid = 36,800 − 32,000 = KSh 4,800 (1 mark); percentage = % of the cash price (1 mark).
Question 5
4 marksMwangi wishes to borrow KSh 50,000 for 2 years. A sacco charges simple interest at 12% per annum while a bank charges compound interest at 11% per annum, compounded annually. Determine which lender is cheaper and by how much.
(4 marks)
Marking scheme
Sacco: simple interest = 12,000 (1 mark). Bank: amount after 1 year = 50, 55,500 (1 mark); amount after 2 years = 55, 61,605, so compound interest = 61,605 − 50,000 = KSh 11,605 (1 mark). Conclusion: the bank is cheaper by 12,000 − 11,605 = KSh 395 (1 mark; conclusion must name the bank and state the difference).
Question 6
4 marksA hardware shop in Eldoret buys a wheelbarrow for KSh 4,800 and plans to sell it at a profit of 25% of the cost price.
(a) Calculate the price at which the wheelbarrow should be sold.
(b) The shop later sells the wheelbarrow for KSh 5,600. Determine by how much the actual profit falls short of the planned profit.
(4 marks)
Marking scheme
(a) Planned profit = ,800 = KSh 1,200 (1 mark); planned selling price = 4,800 + 1,200 = KSh 6,000 (1 mark). (b) Actual profit = 5,600 − 4,800 = KSh 800 (1 mark); shortfall = 1,200 − 800 = KSh 400 (1 mark). Accept 6,000 − 5,600 = KSh 400 for the final mark.
Question 7
1 markWanjiku deposited KSh 40,000 in a bank that pays simple interest at the rate of 9% per annum. Calculate the amount in her account at the end of two and a half years.
A. KSh 50,800
B. KSh 49,000
C. KSh 43,600
D. KSh 9,000
(1 mark)
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2 marksState two reasons why a shopkeeper may decide to sell goods at a discount.
(2 marks)
Marking scheme
Any two of the following, 1 mark each: to clear slow-moving or old stock; to clear perishable goods before they spoil; to attract more customers or increase the volume of sales; to encourage payment in cash and so avoid the risk of unpaid credit; to reward customers who buy in bulk; to compete with nearby shops selling the same goods. Do not credit repetition of the same reason in different words.
Question 9
3 marksAchieng' deposited KSh 25,000 in a savings account that pays simple interest. After 3 years the interest earned was KSh 6,000. Calculate the annual rate of interest.
(3 marks)
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3 marksA salesman in a shoe shop is paid a commission of 6% on the value of all the goods he sells. In August his commission was KSh 8,400. Calculate the value of the goods he sold, and state what his commission would have been on the same sales if the rate had been raised to 7.5%.
(3 marks)
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3 marksAfter a discount of 8% is allowed, a customer pays KSh 13,800 for a gas cooker. Calculate the marked price of the cooker and the amount of the discount.
(3 marks)
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1 markAn agent of a milk cooperative is paid a basic monthly salary of KSh 8,000 together with a commission of 4% on the value of the milk he sells. In June he sold milk worth KSh 240,000. Calculate his total earnings for June.
A. KSh 9,600
B. KSh 17,920
C. KSh 17,600
D. KSh 248,000
(1 mark)
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1 markA sewing machine has a cash price of KSh 18,000. A tailor buys it on hire purchase by paying a deposit of KSh 4,000 followed by 12 equal monthly instalments. If the hire purchase price of the machine is KSh 20,800, how much is each monthly instalment?
A. KSh 1,733
B. KSh 1,167
C. KSh 1,400
D. KSh 2,067
(1 mark)
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1 markA trader in Kisii bought a crate of avocados for KSh 1,200 and sold the whole crate for KSh 1,500. Calculate her percentage profit.
A. 25%
B. 80%
C. 20%
D. 125%
(1 mark)
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