Mathematics

Question Book
Term 2
For STD8
Published by

Machinga District Education Manager

DEM－Yobu Makina Gama
ST. Therese TDC
PEA－Alice Willard

Production consultant

ST. Therese Primary

Head teacher－Henry Sululu

Cooperators

Naomi Kubota – JICA Volunteer

Yuka Suda– JICA Volunteer
Itoe Kinjo– JICA Volunteer
Writer
Rumi Kuwahara– JICA Volunteer
 Contents

Term 2

No.13 Bills and Budgets .......................................................................................................................3

No.14 Profit and Loss ..........................................................................................................................5

No.15 Discount ..................................................................................................................................11

No.16 Tax ...........................................................................................................................................15

No.17 Premium ..................................................................................................................................20

No.18 Postal services..........................................................................................................................23

No.19 Bank services ...........................................................................................................................30

No.20 Simple accounts .......................................................................................................................34

No.21 Money......................................................................................................................................41

2
 Budgets and Bills

Example
Find the total cost of the following:
12 exercise books at K16.50 each, 8 dozen pencils at K60.00 per dozen, 17 packets of
biscuits at K15.00 each, 74 candies at K1.50 each.

Working
12 Exercise books at K16.50 = K16.50 × 12 = K198.00
8 Dozen pencils at K60.00 = K60.00 × 8 = K480.00
17 packets of biscuits at K15.00 = K15.00 × 17 = K255.00
74 candies at K1.50 = K1.50 × 74 = K111.00
TOTAL = K1044.00

Check!
When you make a budget or bill, you should write the following 5 categories.

①Quantity ②Item ③Cost for one item ④Amount ⑤Total amount

12 Exercise book at K16.50 = K16.50 × 12 = K198.00

8 Dozen of pencil at K60.00 = K60.00 × 8 = K480.00
17 packets of biscuit at K15.00 = K15.00 × 17 = K255.00
74 Candies at K1.50 = K1.50 × 74 = K111.00
TOTAL = K1044.00
① Quantity ②Item ③Cost for one item
④Amount ⑤Total amount

Calculation for making a budget or bill

④Amount ＝ Quantity × Cost for one item

⑤Total amount ＝ Sum of amount

In this case K198.00＋K480.00＋K255.00＋K111.00=K1044.00

The Writing style of bills and budgets are the same.

3
Exercise
(1) Table shows Mama’s budget for the month of February 2018. (2018)

Item Quantity Cost for one Amount

item (K) (K)
Sugar 5 packets 850.00 4250.00
Cooking Oil 3 bottles 1200.00 (b)
Soap 2 units (a) 1600.00
(i) Complete the table.

(a)= 800.00 Answer

(b)= 3600.00 Answer

(ii) Find the total cost for Mama’s budget.

K9450 Answer

(2) Mphatso bought 5 metres of cloth at K750 per metre, 18 bananas at 3 for K100 and 3½
kg rice at K480 per kg. Prepare a bill for Mphatso. (2017)

5 cloth at K750 =5×750 =K3750

18 3 bananas at K100 =18÷3×100 =K600
3½ rice at K480 =3½×480 =K1680
Total =K6030
K6030 Answer

(3) Aleka had K5000 and bought 30 exercise books at K750 per unit and 5 pens at K120 per
pen. Calculate the amount of money left.
(2019)
Check! → You should find the amount of money left (=balance)
Balance=The money you had – Total amount

30 Exercise book per unit at K750 = K750 × 3 = K2250

5 pen at K120 = K120 × 5 = K600

TOTAL = K2850
Balance= The money you had – Total amount
= K 5000-K2850=K2150 K2150 Answer

4
Example: A business women bought 5 Chitenge in Lilongwe at K2000 per Chitenge, and
sold them at K4000 in Liwonde. All Chitenge have been sold.
Find the profit made.
Check!
Cost price

Selling price

Profit or Loss

Profit = Selling price – Cost price

Loss = Cost price – Selling price

Working
Profit = Selling price – Cost price

Cost price=K2000×5=K10000
Selling price=K3000×5=K15000

∴ Profit＝Selling price – Cost price

= K15000 – K10000 = K5000

Profit is K5000 Answer

Finding cost price… Finding selling price…

Cost price = Selling price－Profit Selling price = Cost price ＋ Profit
If you made a profit, cost price must be If you made a profit, selling price must be
cheaper than selling price. Then you bigger than cost price. Then you should
should use subtraction. use addition.

Cost price = Selling price ＋Loss Selling price = Cost price －Loss
If you made a loss, cost price must be If you made a loss, selling price must be
bigger than selling price. Then you should cheaper than cost price. Then you should
use addition. use addition.

5
Exercise
(1) A shopkeeper sold 2 bales of sugar for (4) A person bought 20 units of fruits for K
K34 000. If each bale was bought at 2000 and sold them at a profit of K50
K15 000, what was the profit made? each. Calculate the selling price of each
(2019) fruit. (2018)
SP=K15000×2=K30000 K2000÷20 = K100
Profit=SP-CP K100＋K50 = K150
=K34000-K30000
=K4000

K4000 K150

(2) A man bought 5 bags of onions for (5) A bed was sold at a loss of K1650. If
K4750. He sold two of the bags at the cost price of the bed was K3510,
K1235 each and the rest at K1084 each. what was the selling price? (2010)
He also paid K50 market fee. Calculate K3510-K1650
the amount he made. (2015) =K1860
SP① =1250×2＋1084×3
=2470＋3252
=5722
K1860
SP② =K50 (market fee)
Total SP＝5722＋50
=5772
(6) By selling a car for K500 000. A loss
Profit = SP-CP was made at the rate of 6t per
= 5772-4750 kwacha. Find the amount lost.
=1022 K500000×6 = K3000000
K1022 K300000÷100=K30000

(3) Mr Banda bought 6 baskets of tomatoes K30000

at K780 each. He sold three of the
baskets at K950 each, the other two at
K1200 each. The sixth basket was sold
(7) By selling a goat for K1700, a famer
at K680. Find the total profit that Mr
made a loss of 15t in every kwacha.
Banda made. (2007)
CP =K780×6=4680 Find the cost price. Choose the
SP =950×3＋1200×2＋680 answer. (2008)
=2850＋2400＋680 A. K255 C. 1955
=5930 B. K1445 D. 2000
Total profit = SP – CP K1700×15=25500
= K5930-K4680 25500÷100=255
= K 1250 1700＋255=1955
K1250 C

6
 Profit or Loss percentages

Find out profit or loss percentages

1. Calculate profit or loss
2. Do the following math.

If you want to find a profit percent

Profit × 100％
Cost price

If you want to find a loss percent

Loss × 100％
Cost price

Example: A shopkeeper bought a tin of paint at K 2500.00 and sold it at K2900.00.

Calculate the profit percent. (2014)

Working
Profit = Selling price – Cost price

Selling price=K2900.00
Cost price=K2500.00

Profit = K2900.00-K2500.00
= K400.00

Profit percent= Profit × 100％

Cost price
= K400.00×100％ ＝K400 =16
K2500.00 K25

16％ Answer

7
Exercise

(1) Aisha bought a bicycle for K10000 and (3) A shopkeeper bought a bag for K6800 in
sold it for K5800. What was the loss Lilongwe and sold it for K8000 in Liwonde.
percent? What was the profit percent? Take 2
decimal places in your answer.
Loss percent…
Loss × 100％ Profit percent…
Cost price Profit × 100％
Cost price
Loss=Cost price – Selling price
=K10000-K5800 Profit=K8000-K6500
=K4200 =K1500
𝐾1500×100％
∴Profit percent= 𝐾6500
𝐾4200×100％
∴Loss percent= =23.0769…
𝐾10000
=42
23.08％
42％

(2) A fridge was bought at K64000 and

sold at K50000. Find the profit percent.

Profit percent…
Profit × 100％
Cost price

Profit=Selling price-Cost price

=K64000-K50000
=K6000
𝐾6000×100％
∴Profit percent= 𝐾50000
=12

12％

8
Challenge questions
If you have to find the “Cost price” and “Selling price” from profit％ or loss％…?

Example: After selling a bicycle at K10800.00, a person made a loss of 10%. At what
price must have the person sold it to gain 5%? (2014)

Working
Loss percent and profit percent is a ratio with the cost price. It is showing “compared to
cost price, how much is the profit and loss ％？” Then, the cost price’s percent is always
100％.

Selling price (％)=Cost price(％)－Loss(％)

＝100％－10％ percentage of
＝90％ cost price is
always 100％
Selling price’s percentage = 90％
Amount of the Selling price = K10800.00

If 90％ (selling price) ＝K10800.00

Find the
100％ (cost price) =? (more)
cost
price.
=100％×K10800.00
90％
＝K12000
Cost price = K12000

“To gain 5％” means “to get 5％ profit.”

To get 5％ profit, Selling price should have been how much?
Selling price(％)=Cost price(％)＋Profit(％)
=100％ ＋ 5％
=105％.
Selling price’s percentage = 105％
If 100％(cost price)= K12000
105％(selling price)= ? (more)
=105％ × K12000
100％
=K12600
K12600 Answer

9
Exercise
(1) After selling a bicycle at K27000.00, a (3) A famer bought a machine at K35000,
person made a loss of 10%. Calculate the he sold it a lost of 5％. Calculate the
cost price. selling price.

Cost price (％)=100％ He made a loss. Then in this case Selling

Selling price (％) =Cost price (％)－Loss price must be less than Cost price.
(％) CP=100
=100％-10％ SP=CP-Loss
=90％ =100-5
=95
If 90％ = K27000
100％ = ? (more) 100％=35000
100％×27000 95％= ? (less)
=
90％ 95×35000
=33250
100

=K30000

K33250
K30000

(4) After lady bought a TV at K120 000,

(2) After selling a radio at K8000.00, a
and sold it made a profit of 20％. Calculate
person made a profit of 20%. Calculate the
cost price. the selling price.

A person made a profit, so cost price must

In this case selling price must be more than
be less than Selling price (K8000).
cost price. Let’s think selling price is 100％.
In this case, let’s think selling price％ is
100％.
Selling price％=100％ SP=100％
CP(％)=SP(％)－Profit (％)
Cost price ％ =Selling price％－Profit ％
=100-20
=100％－20％
=80％
=80％
★Because in this case SP>CP 80％=K120 000
100％= ? (more)
100％(selling price％)=K8000
𝐾120000×100％
80％(cost price％) = ? (less) =150000
80

80％×𝐾8000
100％
=6400
K150000
K6400

10
Discount
Discount percent
Marked price
Discount × 100％
Kudula... Marked price

Discount

Discount
Example: A sofa marked at K50 000
MK1000
was sold at K44 000. Find it’s discount
Selling price percent.

Working
Discount percent= Discount × 100％

Ndi gula Marked price

Discount=K50000-K44000
=K6000
Marked price Marked price=K50000
Discount ＋ Selling price

Discount Discount percent= Discount×100％

Marked price – Selling price Marked price
= K6000×100％
Selling price K50000
Marked price – Selling price =12％

12％ Answer
In a discount question, always
Marked price > Selling price
If Marked price becomes greater
than selling price, you should
correct your answer.

11
Exercise
(1) Find the discount on a radio which (4) A shirt marked K2500 was sold for
was marked at K5500 and was K2250. Calculate the discount percent.
sold at K4300. (2015)

K1200
10％

(2) A cell phone was marked K8000. If (5) A pair of trousers marked at K6500
a discount of K450 was given, find was sold at K5850. What was the
the selling price. (2017) discount percentage? (2018)

K7550 10％

(3) What was the marked price of a TV

set which was sold at K35500 and (6)A radio is sold at K4000 at a
the discount was K2500? discount of 20％. What was the cash
discount? (2019)

K38000

K800

12
Commission
Commission is the money for the work
which people have done. Commission percent

Commission × 100％
Total sales

Example: Tadala gets a commission of Example: An shopkeeper received K280

K500 on every 5 dresses she sells. If as commission for selling cosmetics worth
she sells 85 dresses, how much K2000. Find the commission percent.
commission will she get?

Working Working

Commission on 5 dresses=K500 Commission percent

Commission on 85 dresses=? (more) = Commission × 100％
Total sales
= K500×85
5
Use compared
＝K8500
method ＝K280 × 100％
K8500 Answer
K2000

=14％

14％ Answer

13
Exercise
(1) Loza gets a commission of K40 on
every 5 blouses she sells. If she
sells 125 blouses, find her
commission. (2015)
K800
(2) Aisha gets a commission of K50 on
every 5 newspapers she sells. If
she sells 125 newspapers, find her
commission.
K1250
(3) Salla gets a commission of K1000
for every K20 000 on items sold.
Find the total commission Salla
would get after selling items worth
K50 000.
K2500
(4) Bwemba gets a commission of
K600 for every K10 000 on items
sold. Find the total commission
Bwemba would get after selling
items worth K35 000. (2010)
K2100
(5) A saleswoman received K2500 as
commission for selling goods worth
K58000. Find the commission
percent.
5％
(6) A vender sold 520 buckets of
batata and got a commission of K50
on every bucket. Find the
commission percent.
20％
14
What is Tax?

Tax is an amount of money that you should pay to the government. The

government uses that money to handle public services for the nation.

In this worksheet, you will learn the calculation of…

Value added tax Customs duty Income tax.

Value Added Tax (VAT)

Tax Rate × Value of goods

When you buy something, you should pay this tax.

Customs duty

Duty Rate × Value of imports

It is added to the things which are imported from foreign countries.

Ex) When you buy a car from Japan, you should pay the value of the

car and customs duty.

Marked price … K 100 000

Customs duty … K100 000

Total cost = K 200 000

15
Exercise
(1) A trader paid 17.5% value added
tax for goods worth K2800. How much
was the value added tax? (2015)
K490
(2) A person paid 17.5% value added
tax for goods worth K3500. How much
was the value added tax?
K613
(3) A businessman paid 17.5% value
added tax for goods worth K36 000.
How much was the value added tax?
K630
(4) A person paid K420 000 for goods
bought. If the rate of the custom duty
was 51½％, find the value of the
custom duty.
K216300
(5) A lady paid K760 000 for goods
bought. If the rate of the custom duty
was 51½％, find the value of the
custom duty.
K391400
(6) A shop owner paid K30 000 for
goods bought. If the rate of the
custom duty was 51½％, find the
value of the custom duty.
K15450
16
 Income tax

It is added to the salary which people earn.

Exercise
(1) A worker receives K23 500 per
month as his net salary, If the gross
salary per month is K28 000, find the
total tax that the worker will pay after a
year. (2013)
Net salary… The salary which is left
after deducting tax and
National Insurance
contributions
Gross salary…The amount of the
money paid to employee
before deducting tax and
National Insurance
contributions.
(2) A man earns a salary of K7500 a
month. He pays income tax at the rate
of 10t in every kwacha. How much
does he receive after deducting tax?
(2007)
7500×10t = 75000t
75000t=K750
After deducting tax…
K7500-K750=K6750
K6750
(3) A worker’s salary is K14 200 per
month. If he receives K12 700 per
month after deducting income tax,
what is his income tax per year?
※deducting…subtract (2019)

His salary is K14200 per month.

After deducting income tax, he receives
K12700.
His income tax per month
K14200-K12700 = K1500

His income tax per year

1 year=12 month
K1500×12month = K18000
K18000

17
Find the value of goods or salary Find tax rate

Amount of tax ÷ Tax rate Amount of tax (custom duty) × 100％

value of goods or salary before deducting

Example: A person paid K420 000 as a Example: A company paid K400000 as

customs duty for goods bought. If the customs duty for a machine worth
rate of the customs duty was 51½％, K1600000. At what rate was the
find the value of the goods. (2017) customs duty charged? (2018)

Working Working
Value of goods=Amount of tax÷Tax Tax rate= Amount of tax
rate value of goods
４０００００ ４ １
= = =
１６０００００ １６ ４
The customs duty = 51½%
＝51.5% １ １
= ×100% = 25%
４ ４
= 51.5÷100
= 0.515 25% Answer

Value of goods = 420 000 ÷ 0.515
= 815533.981
815533.981 to 2 decimal places
→815533.98
Example: A worker receives K23500 per
month as his net salary. If the gross
salary per month is K28000, find the
total tax that the worker will pay after a
year. (2013)

K815533.98 Answer Working

Net salary= salary ― income tax
Gross salary= salary ＋ income tax

Tax that the worker pay per month

K28000-K23500=K4500
Total tax that the woker will pay
after a year
1 year = 12 months
K4500×12months=K54000
K54000 Answer

18
Exercise
(1) A person paid K500 000 as a
custom duty for goods bought. If the
rate of the custom duty was 12½％,
find the value of the goods.
(2) A person paid K30600 as a custom
duty for goods bought. If the rate of
the custom duty was 51½％, find the
value of the goods.

Value of goods Value of goods

=Amount of tax÷Tax rate =Amount of tax÷Tax rate

The customs duty = 12½% The customs duty = 51½%

＝12.5% ＝51.5%
⇒12.5÷100 ⇒51.5÷100
= 0.125 = 0.515

Value of goods = 500 000 ÷ 0.125 Value of goods = 306 000 ÷ 0.515
= 4,000,000 = 59417.4757
To 2 decimal places
K4,000,000 Answer K59417.48 Answer

19
What is insurance and premium?
Insurance is a means of protection from financial loss. People who buy insurance
pay a "premium" (often paid every month). In exchange for this, if something bad
happens to the person or thing that is insured, the company that sold the insurance
will pay money back to cover that financial loss.

Life insurance (Insurance for life)

When someone who already entered life insurance dies suddenly, the insurance
pays money to the person’s family to cover his or her loss.

Example: Table 3 shows the monthly premium per K10 000 for a life
insurance policy for a 26 to 28 year old. (2013)

Age (years) Rate per

K10 000
per month
26 K51.70

27 K51.80

28 K52.00

A man 28 years old and his wife 26 years old want to insure their lives for
K150 000 each. Find the total monthly premium for the two.

Working
They want to insure for K150 000 each.
Life insurance for the man = K150 000 Life insurance for his wife=K150 000
Because he is 28 years old… Because she is 26 years old…
Per K10000 … K51.70
Per K10000 … K52.00 K150000 … ?
K150000 … ?
𝐾150000×𝐾52.00 𝐾150000×𝐾51.70
=
𝐾10000
=K780 𝐾10000
=K775.50

∴Total monthly premium

=K780＋K775.50=K1555.5
K1555.5 Answer

20
Exercise
(1) Mr and Mrs Banda, both 28 years (2) The table below shows the
old, decide to insure their lives. Mr monthly payment per K1000 for a life
Banda for K20000 and Mrs Banda for insurance policy for 40 to 43 years old.
K18000.
Age (years) Rate per
Age (years) Rate per K1000
K10 000 per month
per month 40 K60.00
26 K51.70 41 K60.50
27 K51.80
42 K70.00
28 K52.00

Use the table to calculate the monthly

Find the total monthly premium for the premiums on the following:
two. (ⅰ) Thoko is 40 years old and he
wants to insure his life for the sum of
K20000

K197.6 K1200

(ⅱ）Mellissa is 42 years old and she

wants to insure her life for the sum of
K45000

K3150

21
Insured property (insurance for things)
If you lose, or break something which you covered with insurance, there is a
chance you can get money for your loss from the insurance company.

Example: An Insurance Company charges a premium of K9.00 for every K1000.00

on furniture per year. Calculate the total premium paid on furniture worth
K20000.00. (2009)

Working
On every K1000 … K9.00 charge
On K20000 … ? (more)

𝐾20000×𝐾9.00
𝐾1000
=K180

K180 Answer

Exercise

(1) An Insurance Company charges a (2) Table shows premium on insured

premium of K9.00 for every K1000.00 property.
on furniture per year. Calculate the Type of Premium per
total premium paid on furniture worth Property month in Kwacha
K20 000.00. (2009) Truck K5000
Saloon car K2000
For every K1000…K9.00 charge If a company insured two trucks and a
For K20 000.00… ? (more) saloon car, calculate the total insurance
paid for one year. (2010)
𝐾20000×𝐾9.00
=K180
𝐾1000 Per month
2 Trucks and 2 saloon car
2×K5000 ＋ 2×K2000
K180 Answer =K10000＋K4000
=K14000

Per year
K14000×12
=K168,000 K168000 Answer

22
 Postal orders

Example: Chikondi bought 3 postal orders for K210. What was the cost of one
postal order? (2018)

Working
3 postal orders…K210
1 postal order…?

1 × 𝐾210
= 𝐾70
3
K70 Answer

Telegram

Example: Table 2 shows a message sent by telegram. What is the cost of sending
the message at K20 per word? (2019)

To: John Phiri Box 38 Kasungu send money for school uniform
From: Grace Phiri

Working
How many words are there?

※Don’t count ”To:” and “From:” as a word that will be sent.

※Count a bunch of numbers as one word

To: John Phiri Box 38 Kasungu send money for school uniform
From: Grace Phiri
There are 12 words.
1 words…K20
12 words…12×K20=K240
K240 Answer

23
Exercise
(1) Tadala bought 5 postal orders for (4) Table shows a message sent by
K850. What was the cost of one postal telegram
order?
From: AOI 241 DAD GOT SICK PLEASE
COME BACK AS SOON AS
K170 POSSIBLE

TO: FAITH SALIMA BOX 345 RHUMPI

(2) Sala bought 4 stamps and it was
K2000. What was the cost of one How much was the cost of sending the
stamp? telegram at K15.00 per word?

K500 K255

(3) Table shows a message sent by

telegram

From: MPHATSO BOX 555 LIWONDE
SCHOOL CLOSES NEXT WEEK
SEND TRANSPORT
TO: MRS MWALE BOX 6814
BLANTYRE
How much was the cost of sending the
telegram at K12.00 per word?
(5) Calculate the charge one would
pay for sending the following telegram.
TO: Mrs Zabwino box 203 Lilongwe
SCHOOL FEES FOR YOU WILL
BE SENT THIS MONTH END
From: Mrs Jean Madem Box 234
Cholo
How much was the cost of sending the
telegram at K20.00 per word?

K180 K420

24
 Calculate sending price

Example: Table shows the rate of postage for articles transmitted by airmail.
(2009)

Zone of Destination Letters Small Packets and

Books

・Great Britain K95 each K100 per 100g or part

・France thereof

・Zambia K60 K80 per 100g or part

・South Africa thereof
・Zimbabwe
・Kenya
Use the information from the table, to calculate the total cost of sending 2 letters
to Zimbabwe and a parcel of books which weighs 550g to France.

Working
・Sending 2 letters to Zimbabwe
Sending 1 letter to Zimbabwe
⇒ K60
Sending 2 letters to Zimbabwe
⇒ 2 of K60 ＝ 2×K60 ＝ K180

・Sending a parcel of books which weighs 550g to France

Small packets, books…K100 per 100g
Small packets, books 550g…5 of 100g ⇒ 5×K100=K500

K180＋K500=K680
K680 Answer

25
Exercise
Table shows rates of sending mail within Malawi. (2013)
POSTAL ARTICLE MASS RATE (K)
Up to 1000g 150
By ordinary mail
Above 1000g up to 200
3500g
Above 3500g up to 350
5000g
Above 5000g up to 400
7500g
By express mail Up to 500g 750

Above 500g up to 10kg 1000

(1) How much would a person pay altogether for sending an ordinary mail of 550g
and an express mail of 800g?

K1150

(2) How much would a person pay altogether for sending an ordinary mail of
3750g and an express mail of 300g?

K1100

26
(3) Table shows postal charges for sending newspapers within Malawi. (2017)
Item Mass of Item Postal Charge
Up to 20g K360
Above 20g up to 100g K820

Above 100g up to 250g K1180

Above 250g up to 500g K1560

Newspaper Above 500g up to 1000g K2600

Above 1000g up to K3840
2000g

a. How much would a person pay to send a newspaper weighing 21g?

K820

b. What would be the total postal charge for newspapers of mass 240g and 999g?

K3780

27
Calculate commission

Example: Table shows the rates of commission on internal money orders. Use it
to answer the question. (2009)

For an amount not exceeding K10 …………………K2.50

For each additional K1 or part therefore of………… 15t

What commission would be paid on K25.00?

Working
If you send K25.00 through internal money orders…
Amount not exceeding K10
⇒K2.50
Each additional K1 or part therefore of

K25.00-K10=K15.00
K15.00 is additional money.

Additional K1…15t (commission)

Additional K15…15 of 15t (commission)
⇒15×15=225t

Change 225t into kwacha,

225t÷100=K2.25

K2.50＋K2.25=K4.75
K4.75 Answer

28
Exercise
(1) The commission charged for sending money by fast cash money transfer is
10％. If Titani sent K20 500 to his mother by fast cash money transfer, calculate
the; (2017)
(i) Commission paid

K2050

(ii) Total money that Titani paid the post office

K22550

(3) The table shows the rates of commission on money orders within Malawi.
Calculate the commission paid for buying a money order worthy K750.00.(2007)
Amount of Money Commission
(a)For an amount not exceeding K100 K25.00
(b)For each additional K10 or part of K0.50
K10

Chose the answer

A. 25.00 C. 57.50
B. 37. 50 D. 62.50

29
What is Interest?
Interest is a fee paid for borrowing money. When you borrow money from a bank,
you should pay back the amount of money you borrowed with interest.

Simple interest
Calculated on the principal (original amount) of a loan only.

Compound interest
Calculated on the principal and on the interest of previous periods.

Word for this Unit…

P=Principal The amount money borrowed
T=Time The time repayment period
R=Rate The percentage of interest

Formula
𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐚𝐥×𝐓𝐢𝐦𝐞×𝐑𝐚𝐭𝐞 𝐈𝐧𝐭𝐞𝐫𝐬𝐭×𝟏𝟎𝟎
Interest= Time=
𝟏𝟎𝟎 𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐚𝐥×𝐑𝐚𝐭𝐞

𝐈𝐧𝐭𝐞𝐫𝐬𝐭×𝟏𝟎𝟎 𝐈𝐧𝐭𝐞𝐫𝐬𝐭×𝟏𝟎𝟎
Principal= Rate=
𝐓𝐢𝐦𝐞×𝐑𝐚𝐭𝐞 𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐚𝐥×𝐓𝐢𝐦𝐞

Total paid=Principal ＋ Interest

30
 Calculating simple interest

Example: Find the total amount to be paid on a loan of K18000 for 3 years at 5%
simple interest. (2013)

Working
𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐚𝐥×𝐓𝐢𝐦𝐞×𝐑𝐚𝐭𝐞 18000×3×5
Interest= Interest= 100
=2700
𝟏𝟎𝟎

Principal=K18000
Time=3years The simple interest is K2700
Rate=5％ Answer

Exercise
(1) Find the simple interest to be paid (3) Find the amount of money to be
on a loan of K24000 for 3 years at paid on a loan of K18 000 for 36
10％ per annum (2019) months at 5％ per annum for simple
interest. (2019)
K7200
K2700

(4) Find the total amount to be paid on

(2) Mr Titha borrowed K5000 from
Kupata bank. If the bank charged 10%
simple interest per month, how much
money did Mr Titha pay at the end of
two months? (2015)
a loan of K18 000 for 3 years at 5％
simple interest. (2013)
K20700

(5) Calculate the simple interest on

K800 at a rate of 10％ per annum for 3
K100 months. (2008)
K20

31
 Calculating compound interest
Principal
1st year principal=original principal
2nd year principal=original principal ＋ interest of 1st year
3rd year principal=original principal ＋ interest of 2nd year…

Time
Always calculate as 1 year
Example: Calculate compound interest on K70000 for 2 years 10% per
annum. (2010)

Working
1st year 2nd year
Principal=K70000 Principal=K70000＋1st year’s interest
Time=1 year =K70000＋K7000
Rate=10％ =K77000
Principal×Time×Rate Time= 1 year
Interest=
100
Rate=10％
K70000×1×10 K77000×1×10
= =K7000 Interest= =K7700
100 100

∴Compound interest=K7000＋K7700
=K14700
K14700 Answer

Exercise

(1) Calculate compound interest on (2) Calculate compound interest on

K80000 for 2 years 5% per annum. K60000 for 3 years 5% per annum.
1st year interest---
K60000×1×5
st K80000×1×5 =K3000
1 year interest--- =K4000 100
2nd year interest---
K63000×1×5
100 =K3150
100
rd K66150×1×5
3 year interest--- =K3307.5
2nd year interest---
K84000×1×5
=K4200 100
100
K3000＋K3150＋K3307.5=K9457.50
Compound interest
=K4000＋K4200=K8200 K8200 K9457.50

32
 Filling forms
When you want to put your money into a bank account (it is called “deposit”) or
when you want to take your money from a bank account (it is called “withdraw”)
in a bank without an ATM card, you should fill out deposit or withdraw forms.

Example: Figure 2 shows a cash deposit form for Zatonse Bank which is partly
filled out. Use it to answer Questions. (2015)

(1) How many K500 kwacha notes

were deposited?

Amount of money which were

deposited by K500 kwacha notes
⇒K8000
K8000÷K500=16

16 of K500 notes were deposited.

(2) Find the total amount of money
that was deposited.

Total amount of money is---

K8000＋K600＋K100＋K300
=K9000
K9000 Answer

Exercise

By using the above figure, answer the question.

(1) How many K200 kwacha notes (2) How many K50 kwacha notes were
were deposited? deposited?

The money deposited by K200 notes The money deposited by K50 notes
⇒K600 ⇒K300
K600÷K200=3 K300÷K50=6

3 notes 6 notes

33
 Cash and bank account
What is a cash account and bank account?
It is a record of income and expenditure. These records are very important
especially when people do business, to find out if the business makes a profit or
loss.

Check!
Every year the questions which relate to cash accounts or bank accounts are
asked in the examination (MANEB). Because of that you should make sure how to
read and write cash and bank accounts precisely.

Example: Mayamiko’s business had the following transaction in April 2019: (2019)

1 April balance in hand K2000

18 April bought basins K3000
25 April sold cups K1900

Prepare cash account for Mayamiko’s business and balance it as at 30th April 2019.

Working

Mayamiko’s business cash account

Dr Cr
Date Receipts Amount(K) Date Expenditure Amount(K)
01/04/19 Balance 2000 18/04/19 Bought basins 3000
in hand

25/04/19 Sold cups 1900 30/04/19 Balance c/d 900

3900 3900
01/05/19 Balance b/d 900

Balance at 30th April 2019 = K900.

34
 Income side Expenditure

Dr side Cr
Date Income Amount(K) Date Expenditure Amount(K)
01/04/19 Balance 2000 18/04/19 Bought basins 3000
in hand
The same amount

25/04/19 Sold cups 1900 30/04/19 Balance c/d 900

3900 3900
01/05/19 Balance b/d 900

Write total amount of income on both

STEP for writing cash accountsides

and bank account
1. Draw a format. (Income side, Expenditure side)
2. Write “Dr” on the left side of the table. Write “Cr” on the right side of the
table.
The “Dr” stands for “Debit Record”.
The “Cr” stands for “Credit Record”.
3. Enter transactions in a format.
4. After entering transactions, find total amount of income. It is sum of the
amount of income. ⇒ Total income = K2000＋K1900=K3900
5. Find total amount of expenditure ⇒ Total expenditure = K3000
6. Find the balance.
Balance = Total amount of income – Total amount of expenditure
= K3900-K3000
= K900
7. Write “balance c /d” at the end of the expenditure line. The “c/d” is stands
for “carried down”. The date should be last date of the month.
8. Write total amount of income at the ends of both income amount line
and expenditure amount line.
9. Write “balance b/d” at the end of the income line. The “b/d” is stands for
“brought down”. The date should be first date of next month.
10. Write a title, and mention if it is “cash account” or “bank account”

35
 Income words Expenditure words
Balance (cash) in hand/bank Purchase
…The money you have
Capital of 〇〇 Bought 〇〇
Received 〇〇 Paid 〇〇
Sold 〇〇
Fundraising 〇〇
Cashed a check
⇒Change checks into cash
Receipt 〇〇

Check!! Other words

The following words meaning should ・By check…transactions through the
be changed if those words are in cash bank account
account side or if those words are in ・In cash …transactions in cash
bank account side.

・Banked 〇〇
In bank account…income
In cash account…Expenditure

・Withdrawal
In bank account…
Expenditure (because you take money
from bank account)
In cash account…Income

・Deposit
In bank account…
Income (because you put money into
the bank account)
In cash account…Expenditure

36
Exercise
(1) Tadyere started business on 1st January, 2010 with cash in hand K20 000.00.
During the month Tadyere’s transactions were as follows (2014)

2nd January banked K10 000.00

th
5 January sold goods K8 575.00
th
10 January cashed a cheque K9 000.00
for goods sold
th
15 January paid loan K5 350.00

Prepare Tadyere’s cash account and bring down the balance ready for business on
1st February.

Working

Tadyere’s cash account

Dr Cr
Date Receipts Amount(K) Date Expenditure Amount(K)
02/01/10 Banked 10000 15/01/10 Paid loan 5350
05/01/10 Sold goods 8575
10/01/10 Cashed a 9000 31/01/10 Balance c/d 22225
cheque
27575 27575
01/02/10 Balance b/d 22225

Balance at 1st February 2010 = K22225.

37
(2) Table shows Lita’s cash account. Use it to answer the following questions.
(2009)
Dr Cr
DATE RECEIPTS AMOUNT(K) DATE PAYMENT AMOUNT(K)
Nov 1 Balance in 6005 Nov Bought bulls 2200
hand 10 by cash
Nov 3 Was given 1000 Nov Bought 1350
15 fertilizer by
cash
Nov 6 Sold maize for 2000 Nov Bought 300
cash 20 groundnuts
by cash
Nov 19 Sold millet for 500
cash
Nov 21 Sold peas for 200
cash
ⅰ. How much money did Lita spend in the month of November?
K3850
Ⅱ. How much money did Lita have by 1st December?
K5855

(3) Emile made the following transactions in March 2018. (2018)

March 1 Balance in bank K10 000
March 2 Banked K 5 000
March 18 Withdrawal K 3 000
March 29 Received cheque K 4 000
Use this information to answer.
ⅰ. If a bank account for Enile’s transactions was to be prepared, which
transaction is entered under expenditure?
A. Balance in bank K10 000 C. Received cheque K4 000
B. Banked K5 000 D. Withdrawal K3 000
ⅱ. How much money at the bank would Enile have as of 31 March 2018?
Total amount of income=K10000＋K5000＋K4000=K19000
Total amount of expenditure=K3000
Balance = Total amount of income – Total amount of expenditure
=K19000ーK3000=16000 K16000 Answer

38
(4) On 1st June, Chifundo had K8000 in the bank. The following transactions were
made in the month. (2008)
June 2: Withdrew K3075
June 4: Received K2000 by cheque and banked it
June 8: paid K1500 for electricity by cheque
June17: Sold goods by cheque worth K1050 and banked it
Prepare Chifundo’s bank account and bring down the balance to be used on 1st July.
Chifundo’s bank account

Dr Cr
DATE RECEIPTS AMOUNT(K) DATE PAYMENT AMOUNT(K)
June 1 Balance in bank 8000 June 2 withdrew 3075
June 4 Received 2000 June 8 Paid electricity 1500
June 17 Sold goods 1050 1050 June 30 balance c/d 6475
11050 11050
July 1 Balance b/d 6475

Balance at 1st July= K6475

(5) Mr Bonongwe started business with K5000 cash in hand on 1st January 2006.
The following transactions were made during the month of January. (2007)
January 2 Sold fish for K2000
January 5 Paid K1500 cash for water
January 10 Bought clothes for K1250
January 17 Sold fish for K1980
January 22 Banked K2000
January 30 Paid K2500 to workers
Prepare Mr Bonongwe’s cash account and bring down the balance to be used on 1st
February.
Bonongwe’s cash account

Dr Cr

DATE RECEIPTS AMOUNT(K) DATE PAYMENT AMOUNT(K)

01/01/06 Balance in 5000 05/01/06 Paid water 1500
cash
02/01/06 Sold fish 2000 10/01/06 Bought cloths 1250
01/01/06 Sold fish 1980 22/01/06 banked 2000
30/01/06 Paid workers 2500
31/01/06 Balance c/d 3730
9980 9980
01/02/06 Balance b/d 3730
Balance at 1st February= K3730

39
 Cash book
What is a cash book?
It is the record of combined cash account and bank account.
If you can find both the words Cash and Bank, it is a cash book.

Exercise

(1) Table shows business transactions for Mr.Phiri for the month of November 2010.
Use it to answer the questions “a” and “b”. (2013)
Dr Cr

Date Income Cash Bank Date Expenditure Cash Bank

02/11/10 Cash 8 000 02/11/10 Banked 3 500

08/11/10 Receipt 10 000 10/11/10 Paid for goods 600

a) What type of account is shown in the table?

Cash book Answer

b) What was the balance in hand on 1 December 2010?

Balance in hand = total amount of cash
8000-3500-600=K3900
K3900 Answer

40
In the past in Malawi, people used kwacha and tambala. Tambala is smaller than
kwacha. Nowadays we use Kwacha mainly, and tambala is not used so often. But
it has not disappeared officially yet, so let’s learn how to convert from Kwacha to
Tambala in this unit.

1 Kwacha= 100 tambala

Convert to Tambala from Kwacha … ×100

Convert to Kwacha from Tambala … ÷100

Convert to Kwacha (K) Convert to Tambala (t)

100 t = 100÷100＝ K1 K30 = 30×100＝3000 t

2000t = 2000÷100= K20 K1000 = 1000×100＝100000t

K1268 47t = 1268 47÷100＝K1268.47 K183.40=183.40×100＝18340ｔ

Check!
40983 tambala = 409.83 Kwacha = 409 Kwacha 83 tambala

When you show the kwacha and tambala by using decimal point,
usually whole numbers are showing “Kwacha”, and decimal places are
showing “tambala”. You should put only “Kwacha” when you show in decimals.

41
 Convert the Kwacha to foreign currencies

Example: Express 10075 tambala in kwacha and tambala

Working
10075 ÷ 100 =100.75
=100 Kwacha 75 tambala

100 Kwacha 75 tambala Answer

Exercise
(1) Convert 1200t to Kwacha (7) What is 999 500 tambala in
K12 kwacha and tambala? (2018)
9995 kwacha and 0 tambala

(2) Convert 10000t to Kwacha

K100
(8) What is 2 340 982 tambala in
kwacha and tambala?
(3) Convert K 50 to tambala 23409 kwacha 82 tambala
5000t

(4) Convert K 2040 to tambala (9) Express 10 075 tambala in kwacha

204000t and tambala. (2013)
100 kwacha 75 tambala

(5) Convert 23483t to Kwacha

K234.83
(10) Express 23 874 tambala in
kwacha and tambala.
(6) Convert 3556t to Kwacha 238 kwacha 74 tambala
K35.56

42
 Different countries uses different currencies (types of money) .

Malawi South Africa UK(England) US(America) China Japan

When you travel to other countries, you can mainly use the currencies of the country
where you are traveling. For that, you can change your “kwacha” to the other country’s
currency in an exchange place like a bank, some shop and so on.

Converting other currencies to Malawi Kwacha

Example: Chikondi bought a bicycle at South Africa worth 500 Rands. If one rand
is equivalent to K19.74, what is the value of the bicycle in Malawi Kwacha?

Working
5 0 0
1 rand = K19.74
× 1 9 .7 4
500 rand = ? (more)

= 500 rand × K19.74 = K 9870 0 0 0

1 rand 0 0 0
+ 9 8 7 0
K9870 Answer 9 8 7 0 .0 0

43
Exercise
(1) A girl gave ¾ of $600 to her brother.
What is the value of the remaining dollars in (4) A boy gave ⅖ of $400 to her brother. What
Malawi Kwacha?($1=700) (2017) is the value of the remaining dollars in Malawi
Kwacha? ($1=700)

She gave ¾ of ＄600 to her brother.

It means the remaining dollars which she He gave ⅖ of ＄400 to his brother.
4 3 1 1 It means the remaining dollars which he had is
had is ー = ⇒ of ＄600.
4 4 4 4 5 2 3 3
1 ー= ⇒ of ＄400.
How much is the 4
of ＄600? 5 5 5 5
3
How much is the of ＄400?
⇒ ¼×600＝＄150 3
5
⇒ ×＄400=240
The remaining dollars she have is ＄150. 5
The remaining dollars which he has is ＄240.
If ＄1=K700
If ＄1=K700
＄240=? (more)
＄150= ? (more) 240×700
150×700 =K168000
=K105000 1
1
K168000
K105000
(5) Taonga received R2 450 from South Africa.
If R1= K 50, calculate the amount of money
(2) Tinyade received R1 275 from South Africa.
that Taonga received in Malawi Kwacha.
If R1= K 50, calculate the amount of money
that Tinyade received in Malawi Kwacha.
(2019) If R1 = K50

If R1 = K50 R2450= ? (more)

R1275= ? (more)
2450×50
1
=K122500
1275×50
=K63750
1
K122,500

K63750
(6) Chisomo bought a bike in South Africa
worth 1000 rands. If one rand is equivalent to
(3) Chikondi bought a bicycle in South Africa
K19.74, what is the value of the bicycle in
worth 500 rands. If one rand is equivalent to
Malawi Kwacha?
K19.74, what is the value of the bicycle in
Malawi Kwacha? (2010)
R1=K19.74
R1000= ? (more)
R1=K19.74
𝑅1000×𝐾19.74
R500= ? (more) 𝑅1
=K19740
𝑅500×𝐾19.74
=K9870
𝑅1
K9870.00
K19740

44