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Grade 7 Mathematics Learner’s Book

INNODEMS

Section 3.7 Money

Money is anything that is generally accepted as a medium of exchange for goods and services. It is the medium in which prices and values are expressed. Money circulates anonymously from person to person and country to country, thus facilitating trade, and it is the principal measure of wealth.
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Money can be expressed in diffrent currencies eg
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  • kenyan currency that is \(Ksh.\)
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  • United state currency that is \(dollars ($)\) and many more.
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In your school,church, home and the market places people use money to;
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Buy clothes, Pay school fees, buy food, pay expences at home and many more. Therefore money has a broad usein the environment you are situated.
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When bying or selling of any comodity losses and profits may acrue and it is important to be in a position to find and calculate such loses and profits.
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In this topic will concentrate on how we can calculate transactions made by the use of money.
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Subsection 3.7.1 Profit

Businesses can make profits or losses. To understand the concepts of profit and loss, we will define some terms.
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  1. Cost price (\(C.P\)) or Buying price (\(B.P\)). This is the price at which the business man/woman buys an item.
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  2. Selling price (S.P). This is the price at which a business man sells an item.
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If the selling price is greater than the buying price, the business makes profit.
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Therefore,
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\(Profit =Selling\,price (S.P)−Buying \,price(C.P)\text{.}\)
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Activity 3.7.1.

\({\color{Magenta}1.\text{ Work as a class. }}\)
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  1. Role-play shopping activities using the classroom shop.
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  2. One learner to be the seller while the rest be the buyers.
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  3. Take turns for each learner to role-play as the shopkeeper.
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  4. Buy and sell items from the clasroom shop using paper money.
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  5. Work out the profit made on the sale of each item.
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Activity 3.7.2.

\({\color{Magenta}2. \text{ Work as a class. }}\)
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  1. Ekadeli owns a shop in Lusweti town. The table below shows the buying price and selling price in her shop.
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    Items Buying Price (\(BP\)) Selling Price (\(SP\)) Profit \(= (SP-BP)\)
    Tea leavs \(Sh\, 100\) \(Sh\, 120\)
    \(1\,kg\) of rice \(Sh\, 120\) \(Sh\, 150\)
    \(1\,kg\) of sugar \(Sh\, 110\) \(Sh\, 125\)
    \(200\) pages exercise book \(Sh\, 80\) \(Sh\, 100\)
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  2. Compare the buying and the selling price of each item. Which one is higher?
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  3. Complete the table by working out the profit.
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  4. Share your work with other learners in your class.
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  • \({\color{Magenta}\text{ Learning point}}\)
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    Profit is made when the selling price is heigher than the buying price.
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    \begin{align*} \text{Profit}= \amp \text{Selling price} - \text{Buying price }\\ \text{Selling price} =\amp \text{Buying price }+ \text{Profit}\\ \text{Buying price }=\amp \text{Selling price} -\text{Profit} \end{align*}
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Example 3.7.1.

Okoth bought a book for \(Sh.\, 200.\) He later sold the book for \(Sh.\, 250.\) How much profit did she make?
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Solution.
From the question,
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Buying price \(=Sh.\,220\)
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Selling price \(=Sh.\,250\)
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\begin{align*} \text{Profit}=\amp \text{Selling price}- \text{Buying price}\\ = \amp Sh. \,250 -Sh.\, 220 \\ =\amp Sh.\, 30 \end{align*}
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Okoth made a profit of \(Sh.\, 30 \text{.}\)
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Example 3.7.2.

Odhiambo bought a goat for \(Sh.\, 6\, 500\text{.}\) He later sold the goat, making a profit of \(Sh.\, 1\,200\text{.}\) What was the selling price of the goat?
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Solution.
Buying price \(= Sh.\, 6\, 500\)
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profit \(= Sh.\, 1\,200\)
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\begin{align*} \text{Selling price} = \amp \text{Buying price}+\text{Profit} \\ =\amp Sh.\, 6\,500+ Sh.\, 1\,200 \\ =\amp Sh.\, 7\,700 \end{align*}
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Selling price of the goat is \(Sh.\, 7\,700\)
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Subsubsection 3.7.1.1 Percentage profit.

Percentage profit acrues when the selling price is heigher than the buying price.
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It is expressed as a persentage (\(\%\)).
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After the calculation of the profit, the salse person is requred to find the percentage profit that was established during the buying and selling of a perticular comodity or good.
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Activity 3.7.3.
\({\color{Magenta}\text{ Work in groups}}\)
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  1. Draw a table similar to the one shown below.
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    Buying price (BP) Selling price(SP) Profit(P) Percentage profit \(=\frac{P}{BP} \times 100\%\)
    a) \(Sh. \,800\) \(Sh. \,1\,000\)
    b) \(Sh. \,300\) \(Sh. \,500\)
    c) \(Sh. \,625\) \(Sh. \,650\)
    d) \(Sh. \,1\,200\) \(Sh. \,1\,300\)
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  2. Work out the difference between the selling price and the buying price. Fill in the profit column.
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  3. Work out the percentage profit.
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  4. Share your work with other leaners in your cclass.
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\({\color{black}\text{Learning point }}\)
\begin{equation*} \text{Perenytage profit}= \frac{Profit}{Buying \, price} \times 100\% \end{equation*}
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Example 3.7.3.
Ekadeli bought a shirt for \(sh.\, 1\,500\text{.}\) He later sold the shirt for \(sh.\, 1\,800\text{.}\) What percentage profit did Ekadeli make?
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Hint.
1. Identify the profit first.
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2. Use the profit to get the percentage profit(\(\%\)).
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Solution.
The buying price \(= sh.\,1\,500\)
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The selling price \(= sh.\,1\,800\)
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\begin{align*} \text{Profit} =\amp \text{selling price}- \text{Buying price}\\ =\amp sh.\,1\,800-sh.\, 1\,500 \\ =\amp sh.\,300 \end{align*}
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\begin{align*} \text{Percentage profit } =\amp \frac{\text{Profit}}{\text{Buying price}} \times 100\% \\ =\amp(\frac{300}{1\,500} \times 100)\% \\ =\amp (\frac{30\,000}{1\,500})\%\\ = \amp 20\% \end{align*}
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She made a percentage profit of \(20\%\text{.}\)
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Example 3.7.4.
Mwai bought a book for \(sh. 500\text{.}\) He later sold the book making a \(10\%\) profit. How much did he sell the book?
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Solution.
\({\color{blue}\text{Method 1}}\)
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The buying price \(=sh\,500\)
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Perentage profit \(=10\%\)
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Note that, Buying price is equivalent to \(100\%\text{.}\)
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Therefor the profit is gotten as,
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\begin{align*} =\amp \frac{10}{100} \times sh. \,500 \\ =\amp sh. \, 50 \end{align*}
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\begin{align*} \text{Selling price }=\amp \text{Buyting price } + profit \\ =\amp sh. \, 500 + sh.\, 50 \\ =\amp sh.\, 550 \end{align*}
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\({\color{black}\text{Method 2}}\)
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\begin{align*} \text{Buying price}(100\%)=\amp sh. \,500\\ \text{Percentage profit}=\amp 10\% \\ \text{Selling price}(in \, percentage)=\amp 100\%+10\% \\ =\amp110\% \\ Selling\,price =\amp \frac{110}{100} \times sh. \, 500\\ = \amp sh. 550 \end{align*}
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The selling price of the book was \(sh.\, 550\text{.}\)
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Subsection 3.7.2 Loss.

If the selling price is lower than the buying price, the business makes a loss.
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Therefore,
\begin{equation*} Loss= Buying\,\,price - Selling \,\, price \end{equation*}
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Activity 3.7.4.

\({\color{black}\text{Work in groups}}\)
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  1. Look at the table below.
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    Buying price (\(BP\)) Selling price (\(SP\)) Loss(\(BP-SP\))
    \(Sh.\,100\) \(Sh.\,83\)
    \(Sh.\,55\) \(Sh.\,42\)
    \(Sh.\,158\) \(Sh.\,140\)
    \(Sh.\,275\) \(Sh.\,220\)
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  2. Compare the buying and the selling price in each row. Which one is higher?
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  3. Complete the table above by working out the difference between the buying price and the selling price.
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  4. Discuss what could make the trader sell his or her goods at a lower price than the buying price.
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  5. Share your answers with other learners in class.
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\({\color{blue}\text{Learning point}}\)
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\begin{align*} \text{Loss} =\amp \text{Buying price}- \text{Selling price}\\ \text{Buying price}= \amp \text{Loss} + \text{Selling price}\\ \text{Selling price}=\amp \text{Buying price} -\text{Loss} \end{align*}
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Example 3.7.5.

Kastro bought a bicycle for \(sh. \, 8\,000\text{.}\) H leter sold it for \(sh. \, 6\, 500 \text{.}\) How much loss did he make?
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Solution.
Buying price of the bicycle \(= sh. \, 8\, 000\text{.}\)
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Selling price \(= sh. \, 6\, 500\text{.}\)
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\begin{align*} Loss=\amp Buying\,price - Selling \, price \\ =\amp sh. \, 8\, 000 - sh. \, 6\, 500\\ =\amp sh. 1\,500 \end{align*}
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The loss he made was \(sh. 1\,500\text{.}\)
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Example 3.7.6.

Martha bought a Mathematics text book for \(sh. 750\text{.}\) She later sold the textbook making a loss of \(sh. 150\text{.}\) How much did she sell the textbook?
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Solution.
The buying price \(=sh. 750\)
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The loss made \(=sh. 150\)
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\begin{align*} \text{selling price }=\amp \text{Buying price } - \text{Loss} \\ =\amp sh. 750-sh. 150\\ =\amp {\color{blue}\text{sh. 600}} \end{align*}
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The textook was sold for \({\color{blue}\text{sh.600}}\text{.}\)
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Subsubsection 3.7.2.1 Percentage loss.

Percentage loss acrues when the salse person make a loss and may deside to convert the loss into percentage loss.
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Percentage loss is that loss divided by the buying price then multiplyed by \(100\%\text{.}\)
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\({\color{green}\text{Check the activity below for more illustration}}\text{.}\)
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Activity 3.7.5.
  1. Draw the table similar to the one
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    Buying price (BP) Selling price(SP) Loss(L) Percentage loss \(=\frac{L}{BP} \times 100\%\)
    a) \(Sh. \,250\) \(Sh. \,200\)
    b) \(Sh. \,800\) \(Sh. \,680\)
    c) \(Sh. \,1\,000\) \(Sh. \,750\)
    d) \(Sh. \,600\) \(Sh. \,450\)
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  2. Work out the difference between the buying price and the selling price. Fill in the loss column.
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  3. Work out the percentage loss.
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  4. Share your work with other learners in class.
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\({\color{blue}\text{Learning point}}\)
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\begin{equation*} \text{Percentage loss}= \frac{Loss}{Buying \, price} \times 100\% \end{equation*}
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Example 3.7.7.
Jerald bought a matress for \(sh. \, 8\,000\text{.}\) She later sold the matress for \(sh. \, 7\,000\text{.}\) What percentage loss did she make?
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Hint.
1. find the loss he made when selling the matress.
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2. Use the loss to identify the percentage loss.
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Solution.
Item bought and sold is matress.
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The buying price is \(sh. \,8\,000\text{.}\)
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The selling price is \(sh. \,7\,000\text{.}\)
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\begin{align*} \text{Loss}=\amp \text{Buying price}-\text{Selling price} \\ =\amp sh. \,8\,000 -sh. \,7\,000\\ =\amp {\color{blue}\text{sh.1 000}}\\ \text{Percentage loss}=\amp \frac{Loss}{Buying\, price} \times 100\% \\ =\amp (\frac{1\,000}{8\,000} \times 100)\% \\ =\amp 12\frac{1}{2} \% \end{align*}
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The percentage loss she made was \({\color{blue}12\frac{1}{2}\%}\text{.}\)
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Example 3.7.8.
Harriet bought a dress for \(sh. \, 1 \,500\text{.}\) She sold the dress making a percentage loss of \(25\%\text{.}\) How much did she sell the dress?
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Solution.
\({\color{blue}\text{Method 1}}\)
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The dress was bought for \(sh. \, 1\,500\)
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Making a loss interms of percentage as \(25\%\text{.}\)
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Therefore we can obtain loss as,
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\begin{align*} Loss=\amp \frac{25}{100} \times sh. \, 1\, 500 \\ =\amp {\color{blue} sh.\, 375} \end{align*}
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Therefore selling price can be obtained having gotten the loss as \(sh.\, 375\)
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\begin{align*} \text{Selling price}=\amp \text{Buying price }-\text{Loss}\\ =\amp sh. \, 1\, 500 - sh.\, 375\\ =\amp sh. \, 1\,125 \end{align*}
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\({\color{blue}\text{Method 2}}\)
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\begin{align*} \text{Buying price}(100\%)= \amp sh. \, 1\, 500 \\ \text{Percentage loss}=\amp 25\%\\ \text{Selling price}(in\, \%)=\amp 100\%-25\% \\ =\amp 75\% \\ \text{Selling price}=\amp \frac{75}{100} \times sh. \, 1\, 500 \\ =\amp sh. \, 1\,125 \end{align*}
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The selling price of the dress was \({\color{green} sh.\, 1\,125}\)
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Subsection 3.7.3 Discount

\({\color{blue} \text{Discount}} \) is the amount of money deducted from the marked price.
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We can also say, a total bill is usually sold at a discount. Based on the \({\color{blue} \text{profit and loss }} \) concept, the discount is basically the difference between marked price and the selling price.
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\({\color{green} \text{Marked price }} \) is the cost set by the seller as per the market standard, and \({\color{green} \text{selling price }} \) is the price at which the product or commodity has been sold. When the selling price is less than the marked price, then the buyer has said to be got some discount on it.
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Activity 3.7.6.

\({\color{green} \text{Work in groups }} \)
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  • Read the story below.
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    Akinyi walked into a shoe shop in Lusweti town. The marked price of all ladie’s show was \(sh. \,1\,000\text{.}\) Akinyi bargained with the shop attendant to have the price reduced. She later paid \(sh. \,900\) for a pair of shoes. She walked happy.
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  1. Talk about the story. Do you bargain for prices of items to be reduced?
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  2. What was the marked price of the pair of shoes?
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  3. How much did Akinyi pay for the pair of shoes?
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  4. How much money less than the marked price did she pay for the shoes?
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  5. Buy items from the classroom shop using paper money. Bargain for the prices to be reduced. How do you feel when the price is reduced?
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  6. Share your experience with other learners in class.
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\({\color{green} \text{Learning point}} \)
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Sometimes, traders reduce the prices of items to attract customers. Discount is the amount of money deducted from the marked price. When given a discount, the buying price is less than the original price.
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The price after the discount is reffered to as the marked price.
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\begin{align*} {\color{green} \text{Discount}}=\amp{\color{green} \text{Marked price}}-{\color{green} \text{Selling price}} \\ {\color{green} \text{Marked price}}=\amp {\color{green} \text{Selling price}}+ {\color{green} \text{Discount}}\\ {\color{green} \text{Selling price}}=\amp {\color{green} \text{Marked price}}-{\color{green} \text{Discount}} \end{align*}
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Example 3.7.9.

The marked price of a blouse was \(sh. \, 450\text{.}\) Morara bought the blouse at \(sh. \, 400\text{.}\) How much discount was she allowed?
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Solution.
The marked price \(= sh.\, 450\)
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Selling price \(= sh.\, 400\)
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\begin{align*} {\color{green} \text{Discount}}=\amp {\color{green} \text{Marked price}}-{\color{green} \text{Selling price}} \\ =\amp sh.\, 450 - sh.\, 400\\ =\amp {\color{blue} sh.\, 50} \end{align*}
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Example 3.7.10.

Onyimbo bought a blanket for \(sh. \,2\,700\) after he was given a discount of \(sh. \, 300\text{.}\) What was the marked price of the blanket?
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Solution.
The selling price of the blanket \(= sh. \,2\,700\)
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Discount \(= sh. \, 300\)
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\begin{align*} {\color{green} \text{Marked price}}=\amp {\color{green} \text{Selling price}}+ {\color{green} \text{Discount}}\\ =\amp sh. \,2\,700 + sh. \, 300\\ =\amp {\color{blue} sh.\, 3\,000} \end{align*}
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Subsubsection 3.7.3.1 Percentage discount.

Discounts can also be expressed in percentage. When a discount is expressed in percentage it is called \({\color{blue} \text{Percentage discount}}\text{.}\)
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Activity 3.7.7.
\({\color{blue} \text{Work in pairs}}\)
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  1. Complete the table below.
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    Marked price Selling price Discount Percentage discount \(\frac{Discount}{Marked \, price} \times 100\%\)
    a) \(Sh. \,700\) \(Sh. \,620\)
    b) \(Sh. \,10\, 000\) \(Sh. \,9\,500\)
    c) \(Sh. \,450\) \(Sh. \,400\)
    d) \(Sh. \,780\) \(Sh. \,650\)
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  2. Share your work with other learners in class.
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\({\color{blue} \text{Learning point}}\)
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\begin{equation*} \text{Percentage discount}= \frac{Discount}{marked \, price} \times 100\% \end{equation*}
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Example 3.7.11.
The marked price of an iron box is \(sh. \, 2\,000\text{.}\) Ekadeli paid \(sh. \, 1\,800\) for the iron box. What was the percentage discount?
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Solution.
Marked price \(=sh.\, 2 \,000\)
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Selling price \(=sh.\, 1 \,800\)
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\begin{align*} \text{Discount}=\amp \text{Marked price }- \text{Selling price}\\ =\amp sh.\, 2 \,000 - sh.\, 1 \,800 \\ =\amp sh. \, 200 \end{align*}
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Percentage discount \(= \frac{discount}{marked\, price } \times 100\%\)
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\begin{align*} =\amp \frac{sh. \, 200}{sh. \, 2\, 000}\times 100\% \\ =\amp 10\% \end{align*}
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The percentage discount of the iron was \({\color{blue} 10\%}\text{.}\)
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Example 3.7.12.
The marked price of a shirt was \(sh.\, 500\text{.}\) Mathew bought the shirt after he was allowed a \(10\%\) discount. How much did he pay for the shirt?
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Solution.
\({\color{blue} \text{Method 1}}\)
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marked price \(= sh. \, 500\)
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Percentage discount \(= 10\%\)
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\begin{align*} Discount=\amp 10\% \text{of}\, sh.\, 500 \\ =\amp \frac{10}{100} \times sh.\, 500 \\ = \amp {\color{green} sh. \, 50} \end{align*}
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\begin{align*} \text{Amount paid}=\amp sh.\, 500- sh. \, 50\\ =\amp {\color{blue} sh. \, 450} \end{align*}
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\({\color{green} \text{Method 2}}\)
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Marked price (\(100\%\)) \(= sh. \, 500\)
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Percentage discoiunt \(=10\%\)
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\begin{align*} \text{Selling price on percentage}=\amp 100\%-10\%\\ =\amp {\color{green} 90\%} \\ \text{Selling price } =\amp 90\% \text{of} \, sh. \, 500 \\ =\amp \frac{90}{100} \times sh. \, 500\\ =\amp sh. \, 450 \end{align*}
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The percentage discount of the trouser was \({\color{blue} sh. \, 450}\text{.}\)
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Exploration 3.7.8.
\({\color{blue} \text{Extended activity}}\text{.}\)
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👉🏻\({\color{green} \text{Do this activity after class or at home}}\text{.}\)
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Visit the nearest shopping center. Inquire from the traders whether they sell goods at a discount and, if so, why they do so.
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\({\color{yellow} \text{Click the link below to explore more about Discount}}\text{.}\)
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Subsection 3.7.4 Commission and percentage commission.

\({\color{blue} \text{Commission}}\) is the amount of money paid to a salesperson based on the value of goodsand services he or she sells.
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\({\color{blue} \text{A percentage commission}}\) is a fee calculated as a fixed percentage of the total sales or transaction value. It is commonly used in sales, marketing, and brokerage.
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Activity 3.7.9.

\({\color{green} \text{Work in groups}}\)
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  • Read the story below and answer the question that follows.
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    Mzee Morara owns a large motor vehicle firm. He imports cars and sells them locally. He has employed Zawadi and Onyimbo to sell the cars on his behalf. The employees have a basic salary of \(sh. \, 20 \, 000\) each. They are also paid an extra amount of money depending on the value of cars sold. Every month, Zawadi and Onyimbo earn more money than their basic salary. In July, they earned a total of \(sh. \, 30 \, 000\) each. They walked home happy than everbefore.
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  1. How much extra money did Zawadi and Onyimbo earn in July?
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  2. What is the name of the extra money they earned?
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  3. Share your work with other learners in your class.
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Activity 3.7.10.

\({\color{green} \text{Work in pairs}}\)
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  1. Movine is a sales agent in a publising company. The table below shows the commision he received in one week from the sale of books.
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    Weeks Value of goods sold commission Percentage commission \((\frac{Commission}{Total \, sales} \times 100\%)\)
    Week 1 \(sh. \, 80 \, 000\) \(sh. \, 8\, 000\)
    Week 2 \(sh. \, 75 \, 000\) \(sh. \, 7 \, 500\)
    Week 3 \(sh. \, 92 \, 000\) \(sh. \, 9 \, 200\)
    Week 4 \(sh. \, 87 \, 700\) \(sh. \, 8 \, 770\)
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  2. Complete the table by working out the percentage commission.
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  3. Share your work with other learners in class.
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\({\color{green} \text{Learning point}}\)
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Most companies employ people to market their goods. These people are paid some money depending on the value of the goods sold. This amount of money is called \({\color{blue} \text{commission}}\). Some salespeople are paid a monthly sallary together with the commision.
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\begin{equation*} Percentage\, commision \, = \frac{Comission}{Value \, of \, goods\, sold} \times 100\% \end{equation*}
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Follow this link for more activity https://youtu.be/YSWpoyEhYzA
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Example 3.7.13.

A certain campany gives its salespeople commission of \(sh. \, 60\) for every \(sh. \, 800\) worth of goods they sell. In two days, Nyakiambi who is an employee in the company sold goods worth \(sh. \, 96 \, 000 \text{.}\) How much commisiion did she earn?
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Solution.
Total value of goods \(= sh. \, 96 \, 000\)
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Commission on \(sh. \, 800\) sale \(= sh. \, 60\)
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Therefore commision on \(sh. \, 96 \, 000\) is,
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\begin{align*} = \amp \frac{sh. \, 96 \, 000}{sh. \, 800} \times sh. \, 60\\ =\amp sh. \,7\, 200 \end{align*}
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The commision that Nyakiambi earned was \({\color{blue} sh. \,7\, 200 }\)
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Example 3.7.14.

Baya received \(sh. \, 20\, 000\) as a commission after selling a car for \(sh. \, 400\, 000\text{.}\) What percentage commission was he given?
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Hint.
Use the formular \(Percentage \,commission = \frac{Commission}{Value \, of \, goods \, sold} \times 100\%\)
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Solution.
The value of goods sold \(=sh. \, 400\, 000\)
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Commission on sale \(= sh. \, 20\, 000\)
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\begin{align*} percentage \,commission =\amp \frac{Commission}{Value \, of \, goods \, sold} \times 100\% \\ =\amp \frac{20 \, 000}{400 \, 000} \times 100\%\\ =\amp 5\% \end{align*}
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She was given a percentage commision of \({\color{blue} 5\% }\)
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Example 3.7.15.

Abdi, a salesperson, is paid a commission of \(10\%\) of the value of his sales, In one month, he sold goods worth \(sh.\, 180 \, 000\text{.}\) How much commission did he earn?
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Hint.
Commission=\(\text{Value of goods sold} \times \text{Commision rate} \)
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Solution.
Commision rate on the value of sale \(= 10\%\)
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value of goods sold is worth \(sh. \, 180\,000\)
🔗
\begin{align*} Commission=\amp \text{Value of goods sold} \times \text{Commision rate} \\ =\amp \frac{10}{100} \times sh. \, 180\,000\\ =\amp sh.\, 18 \, 000 \end{align*}
🔗
Abdi, earned \({\color{blue} sh.\, 18 \, 000 }\) commission.
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🔗
🔗

Example 3.7.16.

A saleslady is paid a basic salary of \(sh. \,10\,000\) and \(10\%\) commission of the value of goods sold. In one month, she sold goods worth \(sh. \, 200\, 000\text{.}\) What were her total earnings that month?
🔗
Hint.
Total earnings is the basic salary together with commission.
🔗
\(Total\, earnings= Basic \, salary + Commission \)
🔗
🔗
Solution.
Commision rate \(= 10\%\)
🔗
Basic salary \(= sh. \, 10 \, 000\)
🔗
Goods sold \(= sh. \, 200\, 000\)
🔗
Commission paid \(= 10\% \text{of the valu of goods sold}\)
🔗
\begin{align*} =\amp \frac{10}{100} \times sh . \, 200\, 000\\ =\amp {\color{green} sh. \,20 \, 000 } \end{align*}
🔗
\begin{align*} \text{Total earnings} =\amp \text{Basic salary} + \text{commission} \\ =\amp sh. \, 10 \, 000 + sh.\, 20\, 000 \\ =\amp {\color{pink} sh. \,30 \, 000 } \end{align*}
🔗
The tatal earnings that month was \({\color{blue} sh. \,30 \, 000 }\)
🔗
🔗
🔗
🔗

Subsection 3.7.5 Bills

A bill shows the various items sold, their quantities, the price per unit item and cost.
🔗
It acts as a proof of the payment made or received during a business transaction.
🔗
There are different types of bills such as; \({\color{green} \text{Eectricity bills, telephone bills, water bills, house bills, hotel bills, among others.}}\)
🔗
\({\color{black} \text{Components of a bill} }\)
🔗
  1. A bill always has the \({\color{green} \text{Name of the shop }}\) mentioned on top.
    🔗
    🔗
  2. \({\color{green}\text{A unique number }}\) is given to each of the bills. it is called \({\color{green} \text{bill number }}\) or the \({\color{green} \text{serial number }}\) of a bill. It help us find that particular bill easily. \({\color{black} \text{No two bill of the same shop will have the same bill number.} }\)
    🔗
  3. The date mentioned on the bill is called the \({\color{green} \text{Date of purchase. }}\)
    🔗
  4. The \({\color{green} \text{list of items }}\) purchased are always given under the item column.
    🔗
  5. \({\color{green} \text{Quantity }}\) is the total number of each item bought. Quantity can either be in \({\color{green} \text{numbers}}\) or \({\color{green} \text{weights.}}\) For example , one notebook or \(1\) kilogram of rice. In this case, the notebook is quantified in numbers, and rice is quantified in weights.
    🔗
  6. The \({\color{green} \text{cost }}\) of each item or the rate of each item is the \({\color{green} \text{original price }}\) of each item.
    🔗
  7. \({\color{green} \text{Amount }}\) to be paid for each item is quantity multiplied by the rate of each item.
    🔗
  8. The \({\color{green} \text{total amount }}\) to be paid for the entire purchase is the \({\color{green} \text{addition of amounts to be paid }}\) for each of the items.
    🔗
🔗

Subsubsection 3.7.5.1 Interpreting bills.

Work in groups
🔗
  1. Look at the tables below.
    🔗
    Bills.
    🔗
  2. What can you see in the tables above?
    🔗
  3. What is a bill?
    🔗
  4. What are the components of a bill?
    🔗
  5. Use a digital device to search for other types of bills.
    🔗
  6. Share your findings with other learners in class.
    🔗
🔗
\({\color{blue} \text{Learning point. }}\)
🔗
  • A bill is a list that contains details of goods and services, their prices and the total cost.
    🔗
    🔗
  • Some of the components of a bill include; the date, the amount of money and the items purchased or services paid for.
    🔗
🔗
  • \({\color{blue} \text{Parental engagement activity }}\)
    🔗
    With the help of your parent or quardian, interpret different bills at home.
    🔗
    🔗
🔗
🔗

Subsubsection 3.7.5.2 Preparing bills

Activity 3.7.11.
Work in groups
🔗
Read the story below.
🔗
  • Gillian bought the following items from a kiosk:
    🔗
    \(2\,kg\) of sugar at \(sh\,120\) per kilogram
    🔗
    \(2\) loaves of bread at \(sh\, 50\) per loaf
    🔗
    \(5\) packets of milk at \(sh\, 50\) per packet
    🔗
    \(3\) packets of salt at \(sh\, 20\) per packet.
    🔗
    She paid for the items using a thousand shillings note.
    🔗
    🔗
🔗
  1. Prepare Gillian’s bill.
    🔗
    🔗
  2. How much did she pay for the items?
    🔗
  3. How much balance did she get?
    🔗
  4. Share your work with other learners in class.
    🔗
🔗
🔗
\({\color{blue} \text{Learning point }}\)
🔗
  • In preparing a bill,
    🔗
    the symbol \({\color{blue} @ }\) is used to mean per unit. For example, \(2\) loaves of bread @\(sh\,50\) means that the cost of each bread is \(sh\,50\text{.}\)
    🔗
    \('for'\) means the total cost for all items bought.
    🔗
    🔗
🔗
Example 3.7.17.
Morara bought the following items from a retail shop: \(1\) litre of cooking oil at \(sh\, 200\) per litre, \(2\, kg\) of sugar @ \(sh\,130\text{,}\) \(3\) packets of milk @ \(sh\,50\) and five matchboxes at \(sh\,10\) each.
🔗
a) Prepare Morara’s bill for the item bought
🔗
b) If he paid for the items using a one thousand shillings note. how much balance did he get?
🔗
Solution.
\({\color{blue} \text{a) The bill for the item he bought.}}\)
🔗
Items \(Sh\) \(Cts\)
\(1\) litre of cooking oil at \(sh\, 200\) per litre \(200\) \(00\)
\(2\, kg\) of sugar @ \(sh\,130\) \(260\) \(00\)
\(3\) packets of milk @ \(sh\,50\) \(150\) \(00\)
\(5\) matchboxes at \(sh\,10\) \(50\) \(00\)
Total \(660\) \(00\)
b) If he uses \(sh\,1000\)
🔗
\begin{align*} \text{Balance} =\amp sh\, 1000- sh\, 660 \\ = \amp sh\,340 \end{align*}
🔗
The balnce he got was \({\color{blue} sh\, 340}\) .
🔗
🔗
🔗
Watch the link below for more information about the bill.
🔗
🔗
🔗

Subsection 3.7.6 Postal charges.

These refers to the payments made for the services offered in a post office. In Kenya some of these services include:
🔗
  1. Postage of letters and parcels within the country and abroad.
    🔗
    🔗
  2. Postage of letters and parcels within the country and abroad.
    🔗
  3. Sending money
    🔗
  4. Banking
    🔗
  5. Rental boxes
    🔗
🔗
This is an example of a post office where the above transactions are done.
🔗
New post office

Activity 3.7.12.

\({\color{blue} \text{Work as a class}}\)
🔗
  1. With the help of your teacher, visit a nearby post office.
    🔗
    🔗
  2. Gather information about the services offered in the post office.
    🔗
  3. Prepare a chart showing the postal charges.
    🔗
  4. Hang the chart in your classroom for doing exercises given in your clas.
    🔗
🔗
🔗

Activity 3.7.13.

\({\color{blue} \text{Work in groups}}\)
🔗
  1. Grade \(7\) learners from Myra School visited a a post office and came up with the table below.
    🔗
    Type of article Mass limits \(Sh\) \(Cts\)
    Letters Up to \(20\,g\) 21 \(00\)
    Over \(20\,g\) up to \(50\,g\) \(25\) \(00\)
    Over \(50\,g\) up to \(100\,g\) \(28\) \(00\)
    Over \(100\,g\) up to \(250\,g\) \(42\) \(00\)
    Over \(250\,g\) up to \(500\,g\) \(70\) \(00\)
    Over \(500\,g\) up to \(1\,kg\) \(113\) \(00\)
    Over \(1\, kg \) up to \(2\,kg\) \(160\) \(00\)
    Each additional \(1 \, kg\) after \(2\, kg\) \(30\) \(00\)
    Aerograms Single form each \(21\) \(00\)
    Postcards Each \(19\) \(00\)
    🔗
  2. From the above, discuss the cost of sending the following items.
    🔗
    \(\text{a) A letter weighing} \,18\,g \qquad \text{b) A letter weighing} \,150\, g \)
    🔗
    \(\text{c) A letter weighing}\, 800\,g \qquad \text{d) A letter weighing} \,1.5\,kg\)
    🔗
    \(\text{e) A letter weighing} \,3\,kg \qquad \text{f) 3 single from aerograms}\)
    🔗
    \(\text{g) 2 postcards}\)
    🔗
    🔗
  3. Share your answers with other learners in class.
    🔗
🔗
🔗
\({\color{blue} \text{Learning Point}}\)
🔗
Some of the services offered in a post office include \({\color{green} \text{sending}}\) and \({\color{green} \text{receiving letters,parcels and postcards.}}\)
🔗
The tables below will help when solving question under postal charges.
🔗
Table 3.7.18. \({\color{blue} \text{Inland postal charges}}\)
🔗
Type of article Mass limits \(Sh\) \(Cts\)
Letters Up to \(20\,g\) \(25\) \(00\)
Over \(20 \,g \) up to \(50\,g\) \(30\) \(00\)
Over \(50 \,g \) up to \(100\,g\) \(32\) \(00\)
Over \(100 \,g \) up to \(250\,g\) \(46\) \(00\)
Over \(250 \,g \) up to \(500\,g\) \(70\) \(00\)
Over \(500 \,g \) up to \(1\,kg\) \(114\) \(00\)
Over \(1 \,kg \) up to \(2\,kg\) \(123\) \(00\)
Aerograms(single form) Each \(21\) \(00\)
Literature for the blind Free postage
Postcards Each \(15\) \(00\)
Printed papers(limit of mass \(1\,kg\)) Up to \(20\,g\) \(39\) \(00\)
Over \(20 \,g \) up to \(50\,g\) \(54\) \(00\)
Over \(50 \,g \) up to \(100\,g\) \(72\) \(00\)
Over \(100 \,g \) up to \(250\,g\) \(89\) \(00\)
Over \(250 \,g \) up to \(500\,g\) \(98\) \(00\)
Over \(500 \,g \) up to \(1\,kg\) \(115\) \(00\)
Parcels(limit of mass \(50\,kg\)) Up to \(5\,kg\) \(50\) \(00\)
Over \(5\,kg\) up to \(10\,kg\) \(89\) \(00\)
Over \(10\,kg\) up to \(15\,kg\) \(168\) \(00\)
Over \(15\,kg\) up to \(20\,kg\) \(246\) \(00\)
For each additional \(1\,kg \) or part thereof up to \(50\, kg\) \(9\) \(00\)
Table 3.7.19. \({\color{blue} \text{International Postal Charges}}\)
🔗
Type of article Mass steps Countries within East African Zone. Countries within the rest of Africa Countries within Europe, Middle and Near East Zone Australia, America and the Far East Zone
Letters Not over \(20\, g\) \(60\) \(70\) \(76\) \(98\)
Not over \(50\, g\) \(110\) \(120\) \(187\) \(231\)
Not over \(100\, g\) \(198\) \(231\) \(323\) \(441\)
Not over \(250\, g\) \(463\) \(535\) \(872\) \(1073\)
Not over \(350\, g\) \(651\) \(762\) \(1220\) \(1535\)
Not over \(500\, g\) \(928\) \(1082\) \(1740\) \(2189\)
Not over \(1\, kg\) \(1382\) \(1014\) \(2620\) \(3279\)
Not over \(2\, kg\) \(1824\) \(2345\) \(3472\) \(4345\)
Postcards Standard size \(26\) \(33\) \(39\) \(66\)
Any other size \(50\) \(61\) \(66\) \(88\)
Aerogrammes \(\) \(49\) \(54\) \(54\) \(54\)
Single form \(\) \(\) \(\) \(\) \(\)
Printed papers up to \(20\,g\) \(49.00\) \(54.00\) \(60.00\) \(76.00\)
Small parckts Over \(20\,g\,- \, 100 \,g\) \(98.00\) \(120.00\) \(143.00\) \(165.00\)
Over \(100\,g\,- \, 250 \,g\) \(187.00\) \(214.00\) \(253.00\) \(297.00\)
Over \(250\, g\,- \, 500 \,g\) \(319.00\) \(375.00\) \(441.00\) \(530.00\)
Over \(500g\,- \, 1 \,kg\) \(529.00\) \(618.00\) \(717.00\) \(872.00\)
Over \(1\,kg\,- \, 2 \,kg\) \(728.00\) \(850.00\) \(1095.00\) \(1215.00\)
Each additional \(1\, kg\) up to \(5\,kg\) \(364.00\) \(430.00\) \(497.00\) \(618.00\)
Parcels Up to \(5\, kg\) \(1850\) \(2550\) \(2990\) \(3050\)
Over \(5\, kg\) up to \(10\, kg\) \(2500\) \(2830\) \(3110\) \(3256\)
Over \(10\, kg\) up to \(15\, kg\) \(3260\) \(3950\) \(4268\) \(4530\)
Over \(15\, kg\) up to \(20\, kg\) \(4000\) \(4455\) \(4712\) \(5190\)
For each additional \(1\, kg\) or part thereof up to \(50\, kg\) \(1250\) \(1450\) \(1650\) \(1800\)
Literature for the blind \(9.00\) \(9.00\) \(9.00\) \(9.00\)

Example 3.7.20.

Use the Inland postal charges to work out the following questions bellow.
🔗
  1. In which mass limits do we find letters with the following masses:
    🔗
    a) \(45\,g \,\text{?} \qquad \text{b)} 155\,g\,\text{?}\)
    🔗
    c) \(500\,g \,\text{?} \qquad \text{d)} 1.9\,kg\,\text{?}\)
    🔗
    🔗
  2. Cherotich sent four weighing \(120\,g\, ,\,40\,g\, ,\,250\,g\, \text{and} \,1\,kg\text{.}\) How did he play altogether?
    🔗
    🔗
  3. How much does it cost to send \(2\) single postcards?
    🔗
    🔗
🔗
Solution.
From the table, it clearly shows how mass limits is generated.
🔗
  1. a) A letter weighing \(45\, g\) is found in a mass limit of \({\color{green} \text{over} \, 20\,g\, \text{up to} \, 250\,g}\text{.}\)
    🔗
    b) A letter weighing \(155\, g\) is found in a mass limit of \({\color{green} \text{over} \, 100\,g \,\text{up to} \, 250\,g}\text{.}\)
    🔗
    c) A letter weighing \(500\, g\) is found in a mass limit of \({\color{green} \text{over} \, 250\,g \,\text{up to} \, 500\,g}\text{.}\)
    🔗
    d) A letter weighing \(1.9\, g\) is found in a mass limit of \({\color{green} \text{over} \, 1\,kg \,\text{up to} \, 2\,kg}\text{.}\)
    🔗
    🔗
  2. \begin{align*} \text{A letter weighing } \,120\,g=\amp sh\,46 \\ \text{A letter weighing } \,40\,g=\amp sh\,30\\ \text{A letter weighing } \,250\,g=\amp sh\,46\\ \text{A letter weighing } \,1\,kg=\amp sh\,114 \end{align*}
    🔗
    \(sh \,46+\,sh \,30+\,sh \,46 \,sh \,114={\color{blue} sh \,236}\)
    🔗
    🔗
  3. \(1 \) postcard cost \(= \, sh\,15\)
    🔗
    \(Sh\, 15 \times 2 = sh\,30\)
    🔗
    🔗
🔗
🔗
🔗

Example 3.7.21.

Use the international postal charges table to answer the question below.
🔗
How much does it cost to send \(2\) letters of mass \(530\,g\) and \(12\,g\) respectively to America, \(3\) standard size postcards to South Africa and \(3\) letters of mass \(113\,g\text{,}\) \(1.6\,kg\) and \(500\,g\) respectively to Uganda?
🔗
Solution.
\(1\) letter \(530\,g\) to America \(= sh\, 3\,279\)
\(1\) letter \(12\,g\) to America \(= sh\, 98\)
\(3\) standard postcards to South America \(= {\color{green} sh\,33 \times 3 }\)
\(={\color{black} sh\,99 }\)
\(1\) letter \(113\,g\) to Uganda \(= sh\, 463\)
\(1\) letter \(1.6\,kg\) to Uganda \(= sh\, 1\,824\)
\(1\) letter \(500\,g\) to Uganda \(= sh\, 928\)
Total \(= sh\, 6\,691\)
It would cost \({\color{blue} sh\,6\,691}\) to send the items
🔗
🔗
🔗
🔗

Subsection 3.7.7 Mobile money services

\({\color{blue} \text{Mobile money}}\) is an electronic wallet service. This is available in many countries and allows users to store, send, and receive money using their mobile phone.
🔗
The safe and easy electronic payments make Mobile money a popular alternative to bank accounts. It can be used on both smartphones and basic feature phones.
🔗
Most mobile money services allow users to purchase items in shops or online, pay bills, school fees, and top-up mobile airtime. Cash withdrawals can also be carried out at authorised agents.
🔗
To pay a bill or send money to another person, the user selects the relevant service from their phone’s mobile money menu. Paying with mobile money is just like sending a text message – it’s simple and easy.
🔗

Activity 3.7.14.

\({\color{green} \text{Work in groups.}}\)
🔗
  1. Read the story below.
    🔗
    Mr Owen owns a shop in Tawala town. He has a paybill number which the customers use to pay for the goods they purchase fom his shop. Sometimes, Mr Owen allows customers to pay the goods by sending the money directly to his mobile phone account. Once the money is sent, Mr Owen confirms whether he has received the money or not before the customer leaves. Many people like buying goods from his shop because of the convenient method of payment. Mr Owen saves money in a mobile savings account. The money saved earns some interest annually. He withdraws the money only when he wants to use it. Mr Owen, sometimes, borrows money from his mobile account and pays with an interest within a given period of time. Mr Owen loves mobile money services becuse they create efficiency in his workplace.
    🔗
    Owen shop
    🔗
  2. Identify the mobile money services mentioned in the story above
    🔗
    🔗
  3. Share your answers with other groups in class.
    🔗
    🔗
🔗
🔗

Activity 3.7.15.

\({\color{blue} \text{Worhk in pairs.}}\)
🔗
  1. Copy the word puzzle below and shade mobile money services with five different colours.
    🔗
    🔗
  2. Share your work with other learners in class.
    🔗
    🔗
🔗
🔗
\({\color{green} \text{Learning point}}\)
🔗
Mobile money services allow people to use their mobile phones as a bank account. One can \({\color{blue} \text{deposit, withdraw or transfer}}\) money with their handsets. People can also \({\color{blue} \text{save}}\) money and \({\color{blue} \text{borrow}}\) from mobile lenders. Mobile money transfer is fast, easy and secure.
🔗

Subsubsection 3.7.7.1 Mobile money transaction 1

Activity 3.7.16.
Work in groups.
🔗
  1. Look at the table below.
    🔗
    Table 3.7.22. \({\color{blue} \text{Uwezo Mobile Money}}\)
    🔗
    Transaction range \((sh)\) Transfer cost \((sh)\) Withdrawal cost \((sh)\)
    \(1 \,- \, 50\) Free Free
    \(51 \,- \, 100\) \(10\) \(10\)
    \(101 \,- \, 500\) \(20\) \(28\)
    \(501 \,- \, 1\,000\) \(24\) \(35\)
    \(1\,001 \,- \, 1\,500\) \(27\) \(38\)
    \(1\,501\,- \, 2\,500\) \(30\) \(40\)
    \(2\,501 \,- \, 3\,500\) \(33\) \(44\)
    \(3\,501 \,- \, 5\,000\) \(38\) \(47\)
    Above \(5\,000\) \(40\) \(50\)
    🔗
  2. Discus the Charges for the different money transactions in the table above.
    🔗
    🔗
  3. How much does it cost to send the following amount of money through Uwezo Mobile Money?
    🔗
    \(\text{a)} \,sh\,170 \qquad \text{b)} \,sh\,1\,200\)
    🔗
    \(\text{c)} \,sh\,2\,550 \qquad \text{d)} \,sh\,3\,700\)
    🔗
    🔗
  4. How much does it cost to withdraw the following amounts through Uwezo Mobile Money?
    🔗
    \(\text{a)} \,sh\,300 \qquad \text{b)} \,sh\,500\)
    🔗
    \(\text{c)} \,sh\,2\,200 \qquad \text{d)} \,sh\,3\,000\)
    🔗
    🔗
  5. Share your work with other learners in class.
    🔗
    🔗
🔗
🔗
Example 3.7.23.
Use the mobile money transaction below to answer the Question that follow.
🔗
Table 3.7.24. \({\color{blue} \text{Mali Mobile Money}}\)
🔗
Transaction range \((sh)\) Transfer cost \((sh)\) Withdrawal cost \((sh)\)
\(1 \,- \, 50\) 5 Free
\(51 \,- \, 100\) \(10\) \(15\)
\(101 \,- \, 200\) \(13\) \(17\)
\(201 \,- \, 300\) \(17\) \(20\)
\(301 \,- \, 500\) \(20\) \(25\)
\(501 \,- \, 1\,000\) \(27\) \(30\)
\(1\,001\,- \, 2\,500\) \(30\) \(33\)
\(2\,501 \,- \, 3\,500\) \(35\) \(40\)
Above \(3\,500\) \(40\) \(50\)
  1. How much does it cost to withdraw the following amounts of money?
    🔗
    \(\text{a)} \, sh\, 1\,200 \qquad \text{b)} \, sh\, 1\,000 \qquad \text{c)} \, sh\, 2\,550 \)
    🔗
    🔗
  2. Wanyonyi wanted to transfer \(sh\,3\,000\) to his sister and \(sh\,2\,000\) to his brother. What is the minimum amount of money that should be in his Mali Mobile account?
    🔗
    🔗
🔗
Solution.
  1. a) \(sh\, 1\,200\) is in the range of \(sh\, 1\,001\,-\,2\,500.\) The withdrawal cost is \({\color{blue} sh\,30}\text{.}\)
    🔗
    b) \(sh\, 1\,000\) is in the range of \(sh\, 501\,-\,1\,000.\) The withdrawal cost is \({\color{blue} sh\,27}\text{.}\)
    🔗
    c) \(sh\, 2\,550\) is in the range of \(sh\, 2\,501\,-\,3\,500.\) The withdrawal cost is \({\color{blue} sh\,35}\text{.}\)
    🔗
    🔗
  2. To send \(sh\, 3\,000\) a transaction fee of \(sh\,40\) is paid.
    🔗
    To send \(sh\, 2\,000\) a transaction fee of \(sh\,33\) is paid.
    🔗
    \begin{align*} \text{Total amount of money required}=\amp sh\, 3\,000+sh\,40+sh\,2\,000+sh\,33\\ =\amp Sh\,5\,073 \end{align*}
    🔗
    🔗
🔗
🔗
🔗
🔗

Subsubsection 3.7.7.2 Mobile money transaction 2

\({\color{green} \text{Work in groups.}}\)
🔗
  1. Look at the table below, Discuss it.
    🔗
    Table 3.7.25. \({\color{blue} \text{Bora cash lending app}}\)
    🔗
    Loan limit range Interest charged
    \(sh\,1\,000\,-\,sh\,5\,000\) \(1\,\%\)
    \(sh\,5\,001\,-\,sh\,8\,000\) \(2\,\%\)
    \(sh\,8\,001\,-\,sh\,10\,000\) \(3\,\%\)
    \(sh\,10\,001\,-\,sh\,15\,000\) \(4\,\%\)
    \(sh\,15\,001\,-\,sh\,20\,000\) \(5\,\%\)
    \(sh\,20\,001\,-\,sh\,30\,000\) \(6\,\%\)
    \(sh\,30\,001\,-\,sh\,40\,000\) \(7\,\%\)
    \(sh\,40\,001\,-\,sh\,50\,000\) \(8\,\%\)
    Loan limit is \(sh\,50\,000\) \(\)
    🔗
  2. How much interest is charged on the following loans?
    🔗
    \(\text{a)} \, sh\, 4\,000 \qquad \text{b)} \, sh\, 17\,500 \qquad \text{c)} \, sh\, 22\,200 \)
    🔗
    How much would one pay in total for taking a loan worth?
    🔗
    \(\text{a)} \, sh\, 10\,000 \qquad \text{b)} \, sh\, 17\,000 \qquad \text{c)} \, sh\, 34\,000 \)
    🔗
    🔗
  3. Discuss why people take loans. Do you have an experience of a close person to you who takes loans. Talk about it.
    🔗
    🔗
  4. Share your work with other learners in class.
    🔗
    🔗
🔗
Example 3.7.26.
Use the table below to answer the questions that follow.
🔗
Money deposit Percentage \((\%)\) interest earned per year
\(sh\,1\,000\,-\,sh\,4\,999\) \(2\,\%\)
\(sh\,5\,000\,-\,sh\,9\,999\) \(3\,\%\)
\(sh\,10\,000\,-\,sh\,14\,999\) \(4\,\%\)
\(sh\,15\,000\,-\,sh\,19\,999\) \(5\,\%\)
Above \(sh\,19\,999\) \(6\,\%\)
  1. How much interest is earned by saving the following amount of money?
    🔗
    \(\text{a)} \, sh\, 4\,500 \qquad \text{b)} \, sh\, 16\,000 \)
    🔗
    🔗
  2. What will be the total amount of money at the end of the year when one saves \(sh\,17\,500\text{?}\)
    🔗
    🔗
🔗
Solution.
  1. a) \(sh\, 4\,500\) is in the range \(sh\, 1\,000\,-\,4\,999\text{.}\) It earns an iterest of \(2\%\) per year.
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    \begin{align*} \text{Interest} =\amp 2\% \, \text{of} \, sh\, 4\,500\\ =\amp \frac{2}{100} \times sh\, 4\,500 \\ =\amp {\color{blue} sh\,90} \end{align*}
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    b) \(sh\, 16\,000\) is in the range \(sh\, 15\,000\,-\,19\,999\text{.}\) It earns an iterest of \(5\%\) per year.
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    \begin{align*} \text{Interest} =\amp 5\% \, \text{of} \, sh\, 16\,000\\ =\amp \frac{5}{100} \times sh\, 16\,000 \\ =\amp {\color{blue} sh\,800} \end{align*}
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  2. \begin{align*} \text{Interest} =\amp 5\% \text{of} \, sh\, 17\,500 \\ =\amp \frac{5}{100} \times sh\, 17\,500 \\ =\amp {\color{green} sh\, 875} \\ \text{Total amount of money} =\amp \text{Money deposited} + \text{Interest} \\ =\amp sh\, 17\,500+ {\color{green} sh\, 875} \\ = \amp {\color{blue} sh\, 18\,375} \end{align*}
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