This is really bugging me, i was told i was wrong. An example:-
You have been paid £62,017.86 and you have spent £56,550.59, i make this 9% profit. How i worked it out, 56,550.59 divide by 62,017.86 equals 0.9118...... from 0.91 to 100 is 9 so i would say 9%. Am i being thick or is there another way of working it out, the person who told me it was wrong came to a figure of 8.8% and for the life of me i cannot get to this 8.8%
2007-02-07 01:44:25 · 13 answers · asked by rose 3 in Science & Mathematics ➔ Mathematics
62,017.86-56,550.59=5467.3
5467.3/62017.86=0.0881 = 8.8%
2007-02-07 01:51:56 · answer #1 · answered by theearlof87 4 · 1⤊ 0⤋
Your friend has made a mistake, but I'm afraid you have also employed the wrong method of calculation. Please allow me to illustrate:
Total profit = amount paid - amount spent
£62,017.86 - £56,550.59 = £5,467.27
Percentage profit = profit / amount spent x 100
£5,467.27 / £56,550.59 x 100 = 9.6679
Thus your profit rate is 9.6679%
Your friend appears to have divided the amount of profit by the amount paid rather than by the amount spent; this would indeed give a figure of around 8.8% (8.8156%). However, your own calculation shows amount spent / amount paid - whereas this should be the other way around.
I hope this helps.
2007-02-07 05:34:19 · answer #2 · answered by general_ego 3 · 1⤊ 0⤋
Percentages aren't reversable, so it is important to keep in mind your initial value and your final value. For example, if an item is originally $1.00 and is now $0.50, this is 50% off (off being the key word, which let's us know that $1.00 is the initial and $0.50 is the final). However, we wouldn't say the original is 50% more than the final... 50% more than $0.50 would yield an original price of $0.75, not $1.00.
In your case, you are looking for PROFIT.
This means that the 56,550.59 is your initial and 62,017.86 is the final.
To find the increase, take the final and divide by the initial:
62017.86 / 56550.59 = 1.09667927...
So the final is 109.668% of the initial, or a growth of 9.668%
I hope this helps! Best of luck to you. :)
2007-02-07 02:09:14 · answer #3 · answered by disposable_hero_too 6 · 2⤊ 0⤋
you are dividing what you spent, instead of the difference, by the total amount
62,055.86 - 56,550.59 = 5467.27
5467.27 / 62,055.86 = 0.088156
8.815 x 100 =8.8156
this equation assumes you had the greater figure to start with and you spent a sum from it, it does not tell you the percentage of gain if you started with the lower figure and the greater sum is the result of an invested gain
2007-02-07 02:14:19 · answer #4 · answered by price 3 · 1⤊ 0⤋
Selling price = £62,018 to nearest £
Cost price = £56,551 to the nearest £
profit = £5467
Profit as % of cost price = 5467/56,551 x 100%
= 9.67%
Profit as a % of selling price = 5467/62,018 x 100% = 8.8%
The normal practice would be to take as % of cost price.
2007-02-07 02:05:45 · answer #5 · answered by Como 7 · 2⤊ 0⤋
You need to subtract £56550.59 from £62017.86 which gives you £5467.27. Divide 5467.27 by £62017.86 which is 0.0881563. Times this by 100 = 8.81563%.
2007-02-07 01:58:04 · answer #6 · answered by monkienutz 5 · 1⤊ 0⤋
(Paid - Investment)/Investment = 0.096679274256908725443890152162869
So, profit = 9.67%(Above x 100 and rounded)
To check it its is correct, do the sum to find the increase ie
56550.59 + 9.67% = 56550.59 * 1.096679274256908725443890152162869
= £62,017.86
Correct answer is 9.67%(rounded)
2007-02-07 02:00:35 · answer #7 · answered by Marky 6 · 2⤊ 0⤋
I have a third answer. You made 5467.27 on an investment of 56550.89. That is a 9.67% profit
2007-02-07 01:52:11 · answer #8 · answered by Anonymous · 2⤊ 0⤋
56,550.59/62,017.86 = 0.9118
0.9118 x 100 = 91.18% this is the percentage that 56.. is of the 62...
so the profit is 100% - 91.18% = 8.82% profit
2007-02-07 01:58:24 · answer #9 · answered by Anonymous · 1⤊ 0⤋
try asking carol vorderman
2007-02-07 01:50:39 · answer #10 · answered by tinkypinkles 3 · 1⤊ 0⤋