Key Terms

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 percent 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 $b\ne 0$, $d\ne 0$.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 $I=Prt$. Interest earned according to this formula is called simple interest.