Chapter 1: Applications of Mathematics in Practical Situations

Key Formulas
• Profit = selling price – cost price − GST payable = GST (in %) x
• Loss = cost price – selling price (marked price – discount + service
• Profit% = Profit/C.P x 100% charge)
• Loss% = Loss/C.P x 100% • Chargeable income = Total income –
• Discount = marked price – sale price Reliefs
• Discount% = Discount/marked price x • Amount of zakat = 2.5% of the total yearly
100% savings
• Total amount payable = marked price – • If land is irrigated by natural sources then,
discount + service charge + GST payable ushr = 10%
− Service charge = service charge (in • If land is irrigated by artificial means then,
%) x (marked price – discount) ushr = 5%
Key Notes
• GST is paid in addition to goods and services.
• Percentage point is defined as the difference between two percentages.
• A commission is the payment an agent receives for selling or buying something on behalf of another
party.
• Every Muslim who owns wealth equivalent of a value of 7.5 tola of gold or 52.5 tola of silver is
obligated to pay zakat.
• Ushr is a tax that is applied on a Muslim’s agricultural assets