Consumer math is a branch of math that uses basic math skills in real life situations like shopping, calculating taxes, estimating monthly budget, calculating interest rate for a loan, etc. Teaching kids about spending, saving and other aspects of "money math" will prepare them to make better financial decisions.

When you round $35.98 to the nearest dollar, you get $36.

Next you calculate 20% of $36

`36` x`20/100` = `7.2`

So, 20% tip on a bill of $35.98 is approximately $7.2

First calculate the discount price by multiplying the rate by the original price.

`30` x `40/100`=12

So, the discount price is $12

Now subtract the discount price from the original price to find out the sale price.

30 – 12 =18

The sale price is $18

Just divide the total cost by the quantity to get the unit price.

`5.50/10` = `0.55`

The unit price is $0.55 per battery.

Budget | It is income and expenses for a given period of time. |

Debt | Money that is owed or due. |

Expense | Money spent on buying things. |

Salary | Payment made to an employee. |

Utilities | Cost for electricity, water, gas, etc.. |

Loss | A reduction in the value of an investment. |

Profit | Money earned from a business activity. |

Tip | Money given to a worker such as a waiter to express appreciation for service. |

Percent | One part of a hundred. |

Unit price | Cost of one unit of measure of an item. |

Simple interest | Interest calculated on the principal of a deposit or loan. |

Compound interest | Interest added to the principal amount so that the added interest also earns interest. |

Discount | Deduction from the usual cost of a thing. |

Loan | Money that you borrow and must pay back with interest. |

State tax | Money that the state collects based on your earned income. |

Bonds | A loan you give to company or government at a pre-determined interest rate and for a specific time . |

Sales tax | Tax paid for the sales of goods and services. |

Commission | Money paid to an employee or agent based on percentage of the sales made. |

In the following pages, we will talk about percentage, simple interest and compound interest.

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