Commercial Maths : Money Conversion, Profit and Loss
SUBJECT: MATHEMATICS
CLASS: BASIC FIVE / PRIMARY 5
TERM : SECOND TERM
WEEK : WEEK 5,
TOPIC : COMMERCIAL MATHEMATICS : MONEY
- Introduction to Money
- Converting the currency of a country to currency of another country
- Profit and loss
Importance
- Money is the medium of exchange in the day to day transaction of business
- It helps in the payment of goods and services
- Money is used to settle bills for family needs eg education, health, care, charity, vacation, trips etc
Learning Objectives :
Pupils should be able to
- Recognize the types of currency that is used in Nigeria
- Mention types of currency that are used in other countries
- Convert from one currency to another, using the conversion rate
- Solve problems involving profits and loss
Learning Activities :
- Pupils as a class do a role play of class business. Pupils are shared into two groups. A group sells products while another group buys products.
- Dummy money is required for the exchange during the transaction of buying and selling. Also profits and losses are made. If the cost price is bigger than the selling price, a gain is made. If the cost price is smaller than the selling price, a loss is made
- Pupils in small groups use dummy money or photocopy money to work on the conversion the Nigeria currency ( Naira is converted to other country currency and vice versa)
Embedded Core Skills
- Critical thinking and problem solving skills
- Communication and Collaboration
- Student Leadership skills and Personal Development
Learning Resources
- Paper or dummy money
- Recording sheet
- Calculator
Content
What is money?
Money is a medium of exchange that is widely accepted in payment for goods and services. It is a unit of account, a store of value, and a standard of deferred payment. Money is most often in the form of currency, such as banknotes and coins, but it can also take other forms, such as digital currency or gold. The use of money allows for the efficient exchange of goods and services, as it eliminates the need for bartering and allows for the easy comparison of the value of different items. Money is a medium that facilitates trade, commerce, and economic growth.
Importance of money
- Money is the medium of exchange in the day to day transaction of business
- It helps in the payment of goods and services
- Money is used to settle bills for family needs eg education, health, care, charity, vacation, trips etc
- It helps in the measurement of wealth and savings
- Money enables people to plan for their future
- It provides a sense of security and stability
- Money is a store of value and can be used as a means of investment
- It facilitates trade and commerce
- It helps in the creation of jobs and economic growth
- Money helps in the reduction of barter system, which is time consuming and less efficient
- Money helps to standardize value of goods and services.
List of countries and their currencies
- United States – US Dollar (USD)
- Canada – Canadian Dollar (CAD)
- United Kingdom – British Pound (GBP)
- Australia – Australian Dollar (AUD)
- Japan – Japanese Yen (JPY)
- Switzerland – Swiss Franc (CHF)
- China – Renminbi (CNY)
- Mexico – Mexican Peso (MXN)
- Brazil – Brazilian Real (BRL)
- South Africa – South African Rand (ZAR)
- Nigeria – Nigerian Naira (NGN)
- India – Indian Rupee (INR)
- Russia – Russian Ruble (RUB)
- Turkey – Turkish Lira (TRY)
- South Korea – South Korean Won (KRW)
- Indonesia – Indonesian Rupiah (IDR)
- Saudi Arabia – Saudi Riyal (SAR)
- Egypt – Egyptian Pound (EGP)
- Canada – Canadian Dollar (CAD)
- Argentina – Argentine Peso (ARS)
The official currency of Nigeria is the Nigerian naira (NGN). It is divided into 100 kobo. The Central Bank of Nigeria is responsible for issuing and regulating the country’s currency.
The Nigerian naira (NGN) is available in the following denominations:
- Coins: 1, 5, 10, 25 kobo and 1 naira
- Banknotes: 5, 10, 20, 50, 100, 200, 500, and 1000 naira
Currencies of some other countries of the world
- The official currency of Cameroon is the Central African CFA franc (XAF).
- The official currency of South Africa is the South African rand (ZAR).
- The official currency of United Kingdom is the British pound (GBP).
- The official currency of United States of America is the United States dollar (USD).
What is the meaning of Exchange Rate?
Currency exchange rate is the value of one country’s currency against the currency of another country or the value of one currency against a basket of other currencies. It is the rate at which one currency can be exchanged for another. Exchange rates fluctuate based on supply and demand in the foreign exchange market, as well as on a country’s economic and political conditions. A higher exchange rate means that a unit of a country’s currency can buy more units of another country’s currency, and a lower exchange rate means that a unit of a country’s currency can buy fewer units of another country’s currency.
Examples
1.) If 1 Cameroon is the Central African CFA franc (XAF) is equal to ₦0.75 Nigerian naira. How much will the following CFA franc be exchange for in Nigeria naira (1) 100 (2) 150 (3) 600 (4) 75 (5) 12.25
Solution
1 Cameroon Central African CFA franc (XAF) is equal to 0.75 Nigerian naira (NGN)
- 100 CFA franc = 75 NGN
- 150 CFA franc = 112.5 NGN
- 600 CFA franc = 450 NGN
- 75 CFA franc = 56.25 NGN
- 12.25 CFA franc = 9.1875 NGN
Note : To convert 1 Cameroon Central African CFA franc (XAF) to Nigeria naira. You just have to multiply the value of 1cfa with the exchange rate of the naira
1 US dollar (USD) is equal to 455.06 Nigerian naira (NGN)
- 100 USD = 45,506 NGN
- 150 USD = 68,259 NGN
- 600 USD = 273,036 NGN
- 75 USD = 34,132.5 NGN
- 12.25 USD = 5,589.65 NGN
Note : To change from dollars to naira, you will just need to multiply the value of $1 with the amount that you are given in Naira
Evaluation
- How many kobo make a naira?
₦1 makes how many ____ kobo?
$1 makes how many ____ cents?
| Country | Currency | Unit of Division |
|---|---|---|
| Nigeria | Naira | Kobo |
| United States | Dollar | Cent |
| United Kingdom | Pound | Penny |
| Japan | Yen | Sen |
| Canada | Canadian dollar | Cent |
Sample exchange rate for teaching purpose. Please note that this is not the official exchange rate. The rate is just made up for teaching purpose
| Country | Currency | Exchange Rate (1 NGN = ?) |
|---|---|---|
| Nigeria | Naira | 1 |
| United States | Dollar | 0.0025 |
| United Kingdom | Pound | 0.0018 |
| Japan | Yen | 0.28 |
| Canada | Canadian dollar | 0.0030 |
Evaluation
- What is the exchange rate of the Nigerian naira to the US dollar according to the sample table? a) 1 NGN = 0.0011 USD b) 1 NGN = 0.0025 USD c) 1 NGN = 0.0033 USD d) 1 NGN = 1 USD
- How many Canadian dollars can you get for 1 Nigerian naira according to the sample table? a) 0.0011 CAD b) 0.0013 CAD c) 0.0030 CAD d) 1 CAD
- According to the sample table, which country’s currency has the highest exchange rate to the Nigerian naira? a) United States b) United Kingdom c) Japan d) Canada
- How many Japanese yen can you get for 450 Nigerian naira according to the sample table? a) 126 b) 126.5
- What is the exchange rate of the Nigerian naira to the British pound according to the sample table? a) 1 NGN = 0.0007 GBP b) 1 NGN = 0.0018 GBP c) 1 NGN = 0.0022 GBP d) 1 NGN = 1 GBP
- How many US dollars can you get for 45,000 Nigerian naira according to the sample table? a) 112.5 b) 113 c) 113.5 d) 114
- According to the sample table, which country’s currency has the lowest exchange rate to the Nigerian naira? a) United States b) United Kingdom c) Japan d) Canada
- How many British Pounds can you get for 900 Nigerian naira according to the sample table? a) 1.5 b) 1.6 c) 1.7 d) 1.8
- What is the exchange rate of the Nigerian naira to the Canadian dollar according to the sample table? a) 1 NGN = 0.0011 CAD b) 1 NGN = 0.0013 CAD c) 1 NGN = 0.0030 CAD d) 1 NGN = 1 CAD
- How many Japanese yen can you get for 6000 Nigerian naira according to the sample table? a) 168 b) 168.5 c) 169 d) 170
Profit and Loss
Cost price is the amount of money that a store or a business has to pay to buy something from a supplier or a manufacturer. It’s like how much it costs to make or get something. Let’s say, a store wants to sell toy cars, it will need to buy the toy cars from the toy car factory. The amount of money the store pays to the toy car factory to buy the toy cars is the cost price. The store then adds a little extra money, called a profit, to the cost price to make the selling price, which is the price the store will sell the toy cars to customers for.
For example, if the cost price of a toy car is NGN 1000, the store will add NGN 100 as a profit, the selling price of the toy car will be NGN 1100.
It’s important for the store to know the cost price of the items they sell so they can make a profit and stay in business. It’s also important for the customers to know the cost price so they can compare prices and make sure they are getting a good deal.
Selling price is the final price that customers pay when they buy something. It’s like how much you pay for something when you go to the store. For example, if you go to a store to buy a toy car, the selling price is the final price that you will pay for the toy car. The selling price is determined by taking the cost price of the toy car and adding a little extra money, called a profit.
Let’s say, the cost price of a toy car is NGN 1000, and the store wants to make a profit of NGN 100, So the selling price of the toy car will be NGN 1100.
It’s important for the customers to know the selling price so they can compare prices and make sure they are getting a good deal. You can always compare the selling prices of different stores to see where you can get the best deal.
Profit and Loss
Profit and loss are terms used to describe how much money a business makes or loses when they sell a product or service.
Profit happens when the selling price is more than the cost price. It’s like when you buy something for NGN 1000 and sell it for NGN 1100, you have made a profit of NGN 100.
On the other hand, Loss happens when the selling price is less than the cost price. It’s like when you buy something for NGN 1000 and then sell it for NGN 900, you have made a loss of NGN 100.
For example, if you bought a toy car for NGN 1000 and sold it for NGN 1100, you would have made a profit of NGN 100. But if you bought the same toy car for NGN 1000 and sold it for NGN 900, you would have made a loss of NGN 100.
Please note
1. Gain/profit happens when the selling price is more than the cost price.
2. Loss happens when the selling price is less than the cost price.
Remember that
1. Gain/profit = Selling price (SP) – Cost price (CP)
2. Loss = Cost price (CP) – Selling price (SP)
Evaluation
- Sarah bought a book for ₦2,500 and sold it for ₦2,800. How much was her profit?
- David bought a bag for ₦5,000 and sold it for ₦4,500. How much was his loss?
- James bought a pencil for ₦20 and sold it for ₦25. How much was his profit?
- Elizabeth bought a notebook for ₦1,800 and sold it for ₦1,600. How much was her loss?
- James bought a t-shirt for ₦3,200. He sold it for ₦2,900. How much was his loss?
- Jackson bought a wrist clock for ₦3,400. He sold it for ₦3,950. How much was his profit?
- Alex bought a toy for ₦2,300 and sold it for ₦2,500. How much was his profit?
- Mary bought a dress for ₦6,000 and sold it for ₦5,700. How much was her loss?
- Tom bought a phone for ₦35,000 and sold it for ₦38,000. How much was his profit?
- Emily bought a watch for ₦4,500 and sold it for ₦4,000. How much was her loss?
More Practice Questions
- Jackson bought a wrist clock for ₦3,400. He sold it for ₦3,950. How much was his profit? How much was Jackson’s profit from selling the wrist clock? a) ₦550 b) ₦650 c) ₦750 d) ₦950
- James bought a t-shirt for ₦3,200. He sold it for ₦2,900. How much was his loss?. How much was James’ loss from selling the t-shirt? a) ₦200 b) ₦300 c) ₦400 d) ₦500
- If Sarah bought a book for ₦2,500 and sold it for ₦2,800, what was her profit? a) ₦300 b) ₦250 c) ₦200 d) ₦150
- If David bought a bag for ₦5,000 and sold it for ₦4,500, what was his loss? a) ₦500 b) ₦450 c) ₦400 d) ₦350
- If James bought a pencil for ₦20 and sold it for ₦25, what was his profit? a) ₦5 b) ₦10 c) ₦15 d) ₦20
- If Elizabeth bought a notebook for ₦1,800 and sold it for ₦1,600, what was her loss? a) ₦200 b) ₦150 c) ₦100 d) ₦50
- If Alex bought a toy for ₦2,300 and sold it for ₦2,500, what was his profit? a) ₦200 b) ₦150 c) ₦100 d) ₦50
- If Mary bought a dress for ₦6,000 and sold it for ₦5,700, what was her loss? a) ₦300 b) ₦250 c) ₦200 d) ₦150
- If Tom bought a phone for ₦35,000 and sold it for ₦38,000, what was his profit? a) ₦3,000 b) ₦3,500 c) ₦4,000 d) ₦4,500
- If Emily bought a watch for ₦4,500 and sold it for ₦4,000, what was her loss? a) ₦500 b) ₦450 c) ₦400 d) ₦350
Lesson Presentation
Step 1: Introduction (5 minutes)
- Begin by asking students if they have ever bought or sold something before.
- Introduce the concepts of profit and loss by asking the students to recall the following:
- Gain/profit happens when the selling price is more than the cost price.
- Loss happens when the selling price is less than the cost price.
- Allow students to share their experiences of buying or selling items and ask them to think about whether they made a profit or a loss.
Step 2: Development (15 minutes)
- Provide students with examples of buying and selling prices, such as “Michael bought a wristwatch for ₦3,400 and sold it for ₦3,950” and ask them to calculate the profit by subtracting the cost price from the selling price.
- Allow students to work in pairs or small groups to solve the problems.
- Circulate the classroom to assist students who may need help.
- After the students have had time to work through the examples, ask them to share their answers and explain their reasoning.
Step 3: Practice (20 minutes)
- Distribute handouts with practice problems for students to work on independently or in small groups.
- Encourage students to use calculators and to check their work.
- Circulate the classroom to assist students and answer any questions they may have.
Step 4: Assessment (10 minutes)
- Administer a short quiz to assess students’ understanding of the concepts of profit and loss.
- Collect and grade the quizzes.
Step 5: Homework (15 minutes)
- 1. You bought a shirt for 250 Naira and sold it for 300 Naira. The percentage gain is _______.
a) 20% b) 16% c) 25% d) 30%2. If you started with 500 Naira and now have 420 Naira, your percentage loss is _______.
a) 12% b) 16% c) 8% d) 10%3. You saved 150 Naira last week, and now you have 180 Naira. Calculate the percentage gain: _______.
a) 15% b) 20% c) 18% d) 12%4. If you had 800 Naira and lost 120 Naira, your percentage loss is _______.
a) 15% b) 10% c) 20% d) 12.5%5. You gained 80 Naira on Monday and lost 60 Naira on Tuesday. The overall percentage gain or loss is _______.
a) 5% b) 10% c) 8% d) 6%6. Your initial amount is 300 Naira. After a gain of 45 Naira, the final amount is _______.
a) 345 Naira b) 255 Naira c) 345 Kobo d) 255 Kobo7. If you started with 600 Naira and gained 90 Naira, your final amount is _______.
a) 660 Naira b) 690 Naira c) 690 Kobo d) 660 Kobo8. Your initial money is 1200 Naira. After a loss of 150 Naira, the final amount is _______.
a) 1050 Naira b) 1100 Naira c) 950 Naira d) 1000 Naira9. If you bought a book for 450 Naira and sold it for 540 Naira, the percentage gain is _______.
a) 18% b) 15% c) 20% d) 12%10. You lost 30 Naira on Monday and gained 50 Naira on Tuesday. The overall percentage gain or loss is _______.
a) 2% b) 4% c) 5% d) 3%11. Starting with 800 Naira, you lost 160 Naira. The percentage loss is _______.
a) 20% b) 25% c) 15% d) 30%12. Your original amount is 600 Naira. After a gain of 120 Naira, the final amount is _______.
a) 700 Naira b) 750 Naira c) 720 Naira d) 680 Naira13. If you started with 300 Naira and lost 45 Naira, your final amount is _______.
a) 255 Naira b) 250 Naira c) 255 Kobo d) 250 Kobo14. You gained 80 Naira on Monday and lost 70 Naira on Wednesday. The overall percentage gain or loss is _______.
a) 1% b) 2% c) 3% d) 4%15. Starting with 1000 Naira, you gained 150 Naira. The percentage gain is _______.
a) 15% b) 12% c) 10% d) 20%