Money and Economics

Grade 7 Math - Money and Economics

Lesson Objectives

Students will learn how to solve money-related problems involving addition, subtraction, and percentages.
Students will understand basic economic concepts, such as taxes and shares, and how they apply in real life.
Students will be able to calculate and compare prices, discounts, taxes, and shares in different financial scenarios.

Lesson Introduction

Money is an essential part of our daily lives, and understanding how to handle money is key to making smart financial decisions. In this lesson, we will explore how to solve problems related to money and discuss basic economic concepts like taxes and shares. This knowledge will help us in budgeting, shopping, and understanding how taxes and shares affect the economy.

Core Lesson Content

Money is used for various transactions in the economy. We need to understand how to manage it effectively, calculate discounts, taxes, and how shares work in a company. Taxes are a portion of income or purchases that individuals or businesses must pay to the government, and shares represent ownership in a company.

Worked Examples

Example 1: Solving a money-related problem (Adding money).

If you buy a book for ₦500 and a pen for ₦150, how much did you spend in total?

Solution: To calculate the total amount spent, simply add the cost of the book and the pen:

$500 + 150 = 650$

The total amount spent is ₦650.

Example 2: Calculating the price after a discount.

A shirt originally costs ₦1000, but it is on sale with a 20% discount. What is the sale price of the shirt?

Solution: First, calculate 20% of ₦1000:

$1000 \times 0.20 = 200$

Now subtract the discount from the original price:

$1000 - 200 = 800$

The sale price of the shirt is ₦800.

Example 3: Understanding taxes on purchases.

If you buy a phone for ₦15,000 and the tax rate is 8%, how much tax will you pay on the phone?

Solution: To find the tax, multiply the price by the tax rate:

$15000 \times 0.08 = 1200$

The tax on the phone is ₦1200.

Example 4: Calculating share ownership.

You own 10 shares in a company, and each share is worth ₦500. How much is your total investment worth?

Solution: Multiply the number of shares by the value of each share:

$10 \times 500 = 5000$

Your total investment is worth ₦5000.

Example 5: Calculating the amount of VAT on an item.

You bought a tablet for ₦30,000, and the VAT rate is 10%. How much VAT will you pay?

Solution: Multiply the price by the VAT rate:

$30000 \times 0.10 = 3000$

The VAT is ₦3000.

Example 6: Adding tax to a total amount.

You purchased goods worth ₦12,000, and the sales tax is 5%. How much will you pay in total?

Solution: First, calculate the sales tax:

$12000 \times 0.05 = 600$

Now, add the tax to the original price:

$12000 + 600 = 12600$

The total amount to pay is ₦12,600.

Example 7: Calculating percentage of ownership in a company.

If you own 50 shares of a company with 1000 total shares, what percentage of the company do you own?

Solution: To find the percentage of ownership, divide the number of shares owned by the total shares and multiply by 100:

$\frac{50}{1000} \times 100 = 5\%$

You own 5% of the company.

Example 8: Calculating interest earned on an investment.

You invested ₦5000 at an annual interest rate of 6%. How much interest will you earn in one year?

Solution: Multiply the investment by the interest rate:

$5000 \times 0.06 = 300$

The interest earned is ₦300.

Example 9: Calculating the cost after applying a discount.

You want to buy a television for ₦25,000, but you have a voucher for a 15% discount. How much will the television cost after applying the discount?

Solution: First, calculate the discount:

$25000 \times 0.15 = 3750$

Now, subtract the discount from the original price:

$25000 - 3750 = 21250$

The cost after the discount is ₦21,250.

Example 10: Finding the total cost of multiple items.

You buy 3 items: a book for ₦450, a pen for ₦200, and a notebook for ₦300. What is the total cost?

Solution: To find the total cost, add the prices of all the items:

$450 + 200 + 300 = 950$

The total cost is ₦950.

Exercises

If you buy a pen for ₦120 and a notebook for ₦300, how much will you spend in total?
[WAEC] A pair of shoes costs ₦2000. During a sale, you get a 15% discount. What is the sale price? [Past Question]
The price of a laptop is ₦50,000. If the VAT (Value Added Tax) rate is 5%, calculate the tax you will pay.
[NECO] A company has 1000 shares. If you own 200 shares, what percentage of the company do you own? [Past Question]
You bought a watch for ₦2500. After a 10% discount, how much did you pay for the watch?
You invest ₦5000 in stocks. The value of the stocks increases by 12%. How much is your investment worth now?
[NABTEC] A restaurant bill is ₦2500, and the service charge is 8%. What is the total amount you will pay including the service charge? [Past Question]
A customer buys a phone for ₦20,000 and a case for ₦1000. The tax rate is 10%. How much will the customer pay in total?
A shop sells a TV for ₦45,000 with a 5% discount. Calculate the discounted price of the TV.
[JAMB] If you earn ₦50,000 per month and the government deducts 8% for tax, how much tax will be deducted? [Past Question]

Conclusion/Recap

In today's lesson, we learned how to handle money-related problems like adding costs, calculating discounts, and understanding taxes. We also explored economic concepts such as shares and how they work in a company. Understanding these basic principles will help us make smarter financial decisions in everyday life. In the next lesson, we will discuss budgeting and savings strategies.