Business Mathematics – Practice
Questions & Complete Solutions
PAGE 1
INTRODUCTION
Business Mathematics is a core subject for students in business, finance, accounting,
economics, and management courses. It provides practical mathematical tools used to solve
, real business problems, including calculations of interest rates, percentages, profit, loss,
discounts, ratios, and markup pricing. This document contains practice questions and fully
solved answers designed to help students prepare for exams, complete assignments, and
build confidence in mathematical problem-solving.
This material is written in simple language with step-by-step solutions, making it suitable for
secondary school, college, and university students.
SECTION A: PERCENTAGES AND PROFIT/LOSS
Question 1
If a shopkeeper buys goods for £250 and sells them for £325, what is the: a) profit in £? b)
profit as a percentage of cost price?
Answer:
a) Profit = Selling Price – Cost Price
Profit = £325 – £250 = £75
b) Profit % = (Profit ÷ Cost Price) × 100
Profit % = (75 ÷ 250) × 100
Profit % = 0.30 × 100 = 30%
Question 2
A sweater originally costs £80. If there is a 25% discount, what is the new price?
Answer:
Discount amount = 25% × £80
Discount = 0.25 × 80 = £20
Selling Price after discount = £80 – £20 = £60
SECTION B: SIMPLE INTEREST
Question 3
Calculate the simple interest earned on £1,500 at 8% per annum for 3 years.
Answer:
Questions & Complete Solutions
PAGE 1
INTRODUCTION
Business Mathematics is a core subject for students in business, finance, accounting,
economics, and management courses. It provides practical mathematical tools used to solve
, real business problems, including calculations of interest rates, percentages, profit, loss,
discounts, ratios, and markup pricing. This document contains practice questions and fully
solved answers designed to help students prepare for exams, complete assignments, and
build confidence in mathematical problem-solving.
This material is written in simple language with step-by-step solutions, making it suitable for
secondary school, college, and university students.
SECTION A: PERCENTAGES AND PROFIT/LOSS
Question 1
If a shopkeeper buys goods for £250 and sells them for £325, what is the: a) profit in £? b)
profit as a percentage of cost price?
Answer:
a) Profit = Selling Price – Cost Price
Profit = £325 – £250 = £75
b) Profit % = (Profit ÷ Cost Price) × 100
Profit % = (75 ÷ 250) × 100
Profit % = 0.30 × 100 = 30%
Question 2
A sweater originally costs £80. If there is a 25% discount, what is the new price?
Answer:
Discount amount = 25% × £80
Discount = 0.25 × 80 = £20
Selling Price after discount = £80 – £20 = £60
SECTION B: SIMPLE INTEREST
Question 3
Calculate the simple interest earned on £1,500 at 8% per annum for 3 years.
Answer:
