**COMPARING QUANTITIES**

KEYNOTES

**•** The overhead expenses are a part of CP.

**•** Profit or loss is always calculated on CP

**•** For profit, SP>CP and for loss CP>SP

**•** Discount is always calculated on the marked price.

**•** VAT is not a part of selling price. Although it is calculated on the SP but it is excluded from the SP while calculating profit or loss.

**•** Formula for compound interest gives

Amount=P(1+R/100)^{n}

then CI=A-P

**•** If the interest is compounded half yearly the time period becomes twice as much as the numbers of years. The rate of interest is reduced to half.

**•** We compare two quantites by division.It is called ratio. Quantities written in same unit. Ratio has no unit

**•** Another way to compare quantity is to express in percentages.

**•** Profit= Profit/CPX100, Loss= Loss/CpX100