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Dec 21, 2025
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Key Principles of Business Math: Practical Word Problems
Knowunity Philippines
@knowunityphilippines
1 / 10
Getting Started with Business Word Problems
Business word problems might seem intimidating, but they're just real-world scenarios that need mathematical solutions. Think of them as puzzles that help you understand how maths applies to everyday business operations, whether you're running a small shop or planning a major investment.
The key to success is developing a systematic approach rather than jumping straight into calculations. This means taking time to understand what's happening in the problem before you start working with numbers.
The RIDS method gives you a foolproof structure: Read the problem carefully (often twice!), Identify what information you have and what you need to find, Decide which formula or method to use, and Solve the problem while checking your answer makes sense.
Quick Tip: Always read business problems at least twice - the first time to get the general idea, the second time to pick out the specific numbers and what you're being asked to find.
Mastering Profit and Loss Calculations
Understanding profit and loss is absolutely crucial for any business situation. Whether you're calculating how much money a jeepney operator made or figuring out a store's performance, these formulas are your go-to tools.
The basic formulas are straightforward: Profit = Selling Price - Cost Price and Loss = Cost Price - Selling Price. For percentages, you'll divide the profit or loss by the cost price and multiply by 100%. Remember, the cost price is your baseline because businesses want to know their return on investment.
Break-even analysis tells you exactly when a business stops losing money and starts making profit. It's the point where total revenue equals total costs - no profit, no loss. This is incredibly useful for planning and pricing decisions.
Real Example: A jeepney bought for ₱180,000 and sold for ₱120,000 results in a ₱60,000 loss, which is 33.33% of the original cost.
Understanding Interest in Business
Interest calculations pop up everywhere in business - from bank loans to investment returns. Getting comfortable with both simple and compound interest will help you make smarter financial decisions and understand business scenarios better.
Simple interest is the easier one - it's calculated only on the original principal amount using I = P × r × t. You'll see this in short-term loans and basic investments. It's straightforward because the interest stays the same each year.
Compound interest is where things get interesting (pun intended!). Here, you earn interest on your interest, which means your money grows faster over time. The formula A = P^t might look scarier, but it's just showing how your investment compounds.
Power of Compounding: A ₱100,000 investment at 6% for 3 years earns ₱19,101.60 with compound interest versus only ₱18,000 with simple interest - that's an extra ₱1,101.60!
Markup, Discount, and Commission Made Simple
These three concepts are the backbone of retail and sales operations. Whether you're pricing products, calculating sale prices, or working out sales commissions, you'll use these calculations constantly in business situations.
Markup is simply how much you add to your cost price to get your selling price. If you buy shirts for ₱200 and want a 60% markup, you'll sell them for ₱320. The formula Selling Price = Cost Price × makes this calculation quick and easy.
Discounts work in reverse - you're reducing the original price. During sales events, you'll use Sale Price = Original Price × to find the new price. A 15% discount on a ₱45,000 laptop gives you a sale price of ₱38,250.
Commission is how salespeople get paid based on their performance. It's simply Sales Amount × Commission Rate, making it easy to calculate earnings based on sales results.
Business Insight: Understanding these calculations helps you see how businesses balance profitability with competitive pricing and sales incentives.
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Where can I download the Knowunity app?
You can download the app in the Google Play Store and in the Apple App Store.
Is Knowunity really free of charge?
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The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think it’s very much worth it and you’ll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still don’t get it!!! In the end I think it’s worth it 😊👍 ⚠️Also DID I MENTION ITS FREEE YOU DON’T HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLY❗️❗️⚠️
Thomas R
iOS user
Knowunity is the BEST app I’ve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help🤍🤍
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.😋🩷🎀
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as I’ve seen! Geometry too!
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think it’s very much worth it and you’ll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still don’t get it!!! In the end I think it’s worth it 😊👍 ⚠️Also DID I MENTION ITS FREEE YOU DON’T HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLY❗️❗️⚠️
Thomas R
iOS user
Knowunity is the BEST app I’ve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help🤍🤍
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.😋🩷🎀
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as I’ve seen! Geometry too!
Paul T
iOS user
Key Principles of Business Math: Practical Word Problems
Knowunity Philippines
@knowunityphilippines
Ever wondered how shop owners calculate their profits or how banks work out interest on loans? Business mathematics word problems are everywhere in the real world, from your local sari-sari store to major corporations. These practical problems teach you the... Show more
Getting Started with Business Word Problems
Business word problems might seem intimidating, but they're just real-world scenarios that need mathematical solutions. Think of them as puzzles that help you understand how maths applies to everyday business operations, whether you're running a small shop or planning a major investment.
The key to success is developing a systematic approach rather than jumping straight into calculations. This means taking time to understand what's happening in the problem before you start working with numbers.
The RIDS method gives you a foolproof structure: Read the problem carefully (often twice!), Identify what information you have and what you need to find, Decide which formula or method to use, and Solve the problem while checking your answer makes sense.
Quick Tip: Always read business problems at least twice - the first time to get the general idea, the second time to pick out the specific numbers and what you're being asked to find.
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Mastering Profit and Loss Calculations
Understanding profit and loss is absolutely crucial for any business situation. Whether you're calculating how much money a jeepney operator made or figuring out a store's performance, these formulas are your go-to tools.
The basic formulas are straightforward: Profit = Selling Price - Cost Price and Loss = Cost Price - Selling Price. For percentages, you'll divide the profit or loss by the cost price and multiply by 100%. Remember, the cost price is your baseline because businesses want to know their return on investment.
Break-even analysis tells you exactly when a business stops losing money and starts making profit. It's the point where total revenue equals total costs - no profit, no loss. This is incredibly useful for planning and pricing decisions.
Real Example: A jeepney bought for ₱180,000 and sold for ₱120,000 results in a ₱60,000 loss, which is 33.33% of the original cost.
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
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Understanding Interest in Business
Interest calculations pop up everywhere in business - from bank loans to investment returns. Getting comfortable with both simple and compound interest will help you make smarter financial decisions and understand business scenarios better.
Simple interest is the easier one - it's calculated only on the original principal amount using I = P × r × t. You'll see this in short-term loans and basic investments. It's straightforward because the interest stays the same each year.
Compound interest is where things get interesting (pun intended!). Here, you earn interest on your interest, which means your money grows faster over time. The formula A = P^t might look scarier, but it's just showing how your investment compounds.
Power of Compounding: A ₱100,000 investment at 6% for 3 years earns ₱19,101.60 with compound interest versus only ₱18,000 with simple interest - that's an extra ₱1,101.60!
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
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By signing up you accept Terms of Service and Privacy Policy
Markup, Discount, and Commission Made Simple
These three concepts are the backbone of retail and sales operations. Whether you're pricing products, calculating sale prices, or working out sales commissions, you'll use these calculations constantly in business situations.
Markup is simply how much you add to your cost price to get your selling price. If you buy shirts for ₱200 and want a 60% markup, you'll sell them for ₱320. The formula Selling Price = Cost Price × makes this calculation quick and easy.
Discounts work in reverse - you're reducing the original price. During sales events, you'll use Sale Price = Original Price × to find the new price. A 15% discount on a ₱45,000 laptop gives you a sale price of ₱38,250.
Commission is how salespeople get paid based on their performance. It's simply Sales Amount × Commission Rate, making it easy to calculate earnings based on sales results.
Business Insight: Understanding these calculations helps you see how businesses balance profitability with competitive pricing and sales incentives.
Sign up to see the contentIt's free!
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Join milions of students
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Sign up to see the contentIt's free!
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Sign up to see the contentIt's free!
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Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
We thought you’d never ask...
What is the Knowunity AI companion?
Our AI companion is specifically built for the needs of students. Based on the millions of content pieces we have on the platform we can provide truly meaningful and relevant answers to students. But its not only about answers, the companion is even more about guiding students through their daily learning challenges, with personalised study plans, quizzes or content pieces in the chat and 100% personalisation based on the students skills and developments.
Where can I download the Knowunity app?
You can download the app in the Google Play Store and in the Apple App Store.
Is Knowunity really free of charge?
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
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4.9/5
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4.8/5
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think it’s very much worth it and you’ll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still don’t get it!!! In the end I think it’s worth it 😊👍 ⚠️Also DID I MENTION ITS FREEE YOU DON’T HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLY❗️❗️⚠️
Thomas R
iOS user
Knowunity is the BEST app I’ve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help🤍🤍
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.😋🩷🎀
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as I’ve seen! Geometry too!
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
I think it’s very much worth it and you’ll end up using it a lot once you get the hang of it and even after looking at others notes you can still ask your Artificial intelligence buddy the question and ask to simplify it if you still don’t get it!!! In the end I think it’s worth it 😊👍 ⚠️Also DID I MENTION ITS FREEE YOU DON’T HAVE TO PAY FOR ANYTHING AND STILL GET YOUR GRADES IN PERFECTLY❗️❗️⚠️
Thomas R
iOS user
Knowunity is the BEST app I’ve used in a minute. This is not an ai review or anything this is genuinely coming from a 7th grade student (I know 2011 im young) but dude this app is a 10/10 i have maintained a 3.8 gpa and have plenty of time for gaming. I love it and my mom is just happy I got good grades
Brad T
Android user
Not only did it help me find the answer but it also showed me alternative ways to solve it. I was horrible in math and science but now I have an a in both subjects. Thanks for the help🤍🤍
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
I found this app a couple years ago and it has only gotten better since then. I really love it because it can help with written questions and photo questions. Also, it can find study guides that other people have made as well as flashcard sets and practice tests. The free version is also amazing for students who might not be able to afford it. Would 100% recommend
Aubrey
iOS user
Best app if you're in Highschool or Junior high. I have been using this app for 2 school years and it's the best, it's good if you don't have anyone to help you with school work.😋🩷🎀
Marco B
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This app is phenomenal down to the correct info and the various topics you can study! I greatly recommend it for people who struggle with procrastination and those who need homework help. It has been perfectly accurate for world 1 history as far as I’ve seen! Geometry too!
Paul T
iOS user