 # MONEY (RATE, TAX, SHARES AND DIVIDEND)

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Money is a means of exchange; meaning you give someone money in exchange for a good or services. Money is also called currency. Different countries use different currency.

There is a special way of expressing one currency in terms of another. This is known as rate of exchange or exchange rate.

Rate is used to show the relationship between two quantities. If you pay N288 for 12eggs, then you are paying at the rate of N24.00 per egg. Meaning the more the eggs the higher the cost.

ACTIVITY:

Agege Local government charges N5.50 monthly for the user: Find

the total rent collected monthly From

(A). 50 stalls (B) 160 stalls

(A). Monthly rate collected for N50

Tax. is Money that the government collects based on income, sales, and other activities. The Government uses to build schools,

Example: Tax deducted from the taxable Income of an employee is 35K on Every N1. Find the tax paid if the Taxable income is N4,500 = (4,500×35)K = 1,575.00K = 1,575.00

Shares: A company may need money to start business or to start a new project. The sum of money required is called capital. The required capital is divided into small equal parts, and each part is called share.

Example:

A furniture manufacturing company Sells some of its 50K share to the

Public.

(i). what is the cost of 500 shares?

(ii). How many shares can I buy With N2, 000?

Cost of one share = 50K

Cost of 500 Share = 50×500 = #25,000

(ii) cost of one share is 50k, therefore #25,000 will buy 25000/50 shares.

Dividend: The part of the annual profit of a company distributed among its shareholders is called dividend. The Smart am company issues a ₦2 dividend. If you have 100 shares you will get ₦200

Calculations on Rates:

Suppose ₦100 is exchange at £0.50, what is the value of ₦500 in pounds.

Solution: since ₦100 = £0.50

Therefore ₦500 = £0.50 x ₦500 = £250

Activity: Consider the following exchange rate and use it to solve the problem below

\$1 = ₦150, £1 = ₦350,

Change each of the given amount in Naira to dollars and pounds

(i) ₦2800 (ii) ₦1400 (iii) ₦3750

ACTIVITY

1. The printed price of a DVD player is \$ 7500. If a sales tax of 8% is realised from the buyer, find the price at which the DVD player is sold?

1. The listed price of a refrigerator is \$ 9700. If a sales tax of 6% is charged from the buyer, find the selling price of the refrigerator.

1. The price of a colour TV is \$ 13440, inclusive of sales tax. If the printed price of the colour TV be \$ 12000 then find the rate of sales tax.

1. Rahul buys a pair of shoes whose marked price is \$ 500. He has to pay a sales tax of \$ 40. Find the rate of sales tax.

1. The selling price of an article becomes 27/25 times the listed price due to the inclusion of sales tax. Find the rate of sales tax.
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