6.7.1: Key Terms

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May 28, 2023
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- 6.7: Chapter Review
- 6.7.2: Key Concepts

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Key Terms

commission: A commission is a percentage of total sales as determined by the rate of commission.

discount: An amount of discount is a percent off the original price, determined by the discount rate.

mark-up: The mark-up is the amount added to the wholesale price, determined by the mark-up rate.

percent: A perfecnt is a ratio whose denominator is $100$ .

percent decrease: The percent decrease is the percent the amount of decrease is of the original amount.

percent increase: The percent increase is the percent the amount of increase is of the original amount.

proportion: A proportion is an equation of the form $\frac{a}{b} = \frac{c}{d}$ , where $b \neq 0$ , $d \neq 0$ .The proportion states two ratios or rates are equal. The proportion is read “ $a$ is to $b$ , as $c$ is to $d$ ”.

sales tax: The sales tax is a percent of the purchase price.

simple interest: If an amount of money, $P$ , the principal, is invested for a period of $t$ years at an annual interest rate $r$ , the amount of interest, $I$ , earned is $I = P r t$ . Interest earned according to this formula is called simple interest.

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