Pathwise

Mental Math: Calculate Fast in Your Head · Lesson 11 of 12 · 12 min

Money maths

Put the whole course to work where it pays: comparing two pack sizes, reading a real discount, splitting a bill with service on top, and spotting an offer that isn't one.

UNIT PRICE

Bring both to the same size

You can't compare 400 g and 750 g directly, so convert both to a price per 100 g. Divide the price by the number of hundred-gram lumps in the pack: 400 g is 4 lumps, 750 g is 7.5. Suddenly the two packs are speaking the same language.

96,000 for 400 g is 96,000 ÷ 4 = 24,000 per 100 g. 165,000 for 750 g is 165,000 ÷ 7.5 = 22,000 per 100 g. The big pack wins.

pack A:  400 g for  96,000
pack B:  750 g for 165,000

A:  96,000 ÷ 4   = 24,000 per 100 g
B: 165,000 ÷ 7.5
   = 330,000 ÷ 15
   = 22,000 per 100 g

Output

B is cheaper, by 2,000 per 100 g

Dividing by 7.5 looks nasty, so double both sides first: 165,000 ÷ 7.5 is the same as 330,000 ÷ 15. Doubling and halving from lesson 5 works on divisions too.

Check yourself

Pack A is 250 g for 75,000. Pack B is 400 g for 116,000. Which is the better buy?

  1. B, at 29,000 per 100 g
  2. A, at 30,000 per 100 g
  3. A, because it costs less in total
  4. They work out the same
Show the answer

B, at 29,000 per 100 g

Yes. 75,000 ÷ 2.5 = 30,000 and 116,000 ÷ 4 = 29,000, so B is 1,000 cheaper for every 100 g.

DISCOUNTS

Work out what you pay, not what you save

A 40% discount means you pay 60%, and 60% is one step: 10% six times, or half plus a tenth. Going straight to what you pay removes the subtraction at the end, which is where most sale-price mistakes happen.

40% off 650,000: 10% is 65,000, so 60% is 390,000. That's the price, finished, with no second step.

Check yourself

Work out each sale price and match it

Show the answer
  • 20% off 450,000 → 360,000
  • 25% off 320,000 → 240,000
  • 40% off 650,000 → 390,000
  • 15% off 200,000 → 170,000

A bill, a service charge, and six people

  1. The bill is 840,000 and service is 10%

    10% of 840,000 is 84,000. Do the percentage on the bill, never on a figure you've already divided.

  2. Total to pay: 924,000

    840,000 + 84,000. Left to right, as always: 840 + 80 = 920, then + 4.

  3. Split six ways

    6 is 2 × 3. Halve 924,000 to 462,000, then divide by 3: 462 ÷ 3 = 154, so 154,000 each.

  4. Check it before anyone pays

    Six times 154,000 is 924,000. And a rough check: 900,000 ÷ 6 would be 150,000, so 154,000 is exactly the right size.

Check yourself

On a bill of 840,000 with 10% service split between six people, each person owes 154,000.

Show the answer

True

True. The service takes it to 924,000, and 924 ÷ 6 = 154. Note the order: add the service to the whole bill first, then divide. Adding 10% to each person's share afterwards gives the same answer here, but not once someone has ordered differently.

Two questions a price tag answers

What does it cost?

The number on the label. Useful for one thing only: whether you can pay for it today. It says nothing about whether it's good value.

What does it cost per unit?

Price ÷ amount. This is the number that compares two products, two pack sizes, two subscriptions. A yearly plan at 960,000 is 80,000 a month; now you can compare it with the monthly one.

Check yourself

What fraction of the normal price do you actually pay?

  • 25% off
  • Buy 3, get 1 free
  • Half price
  • Buy one, get one free
  • 10% off
  • 10% loyalty discount
Show the answer

You pay 75%: 25% off, Buy 3, get 1 free

You pay 50%: Half price, Buy one, get one free

You pay 90%: 10% off, 10% loyalty discount

Make it a habit

  • Per 100 g, per litre, per month. Whatever the unit, put both options on it before you choose.
  • For a discount, go straight to what you pay: 30% off is 70% of the price, in one step.
  • Add the service charge to the whole bill, then divide. Percentages first, sharing second.
  • An offer phrased as free items is a discount in disguise. Count what you take home against what you hand over.

Check yourself

The hard one. A 1,200,000 dinner for eight has 10% service added. Sara pays for herself and a friend. What does she hand over?

  1. 300,000
  2. 150,000
  3. 165,000
  4. 330,000
Show the answer

330,000

Exactly. 1,200,000 + 120,000 = 1,320,000. Divided by eight that's 165,000 each, and two shares is 330,000.

Lesson recap

  • To compare two packs, divide each price by its size and compare per 100 g, per litre or per month.
  • For a discount, calculate what you pay, not what you save: 40% off is 60% of the price.
  • Add a service charge to the whole bill, then split; break the split into factors, as 6 is 2 then 3.
  • 'Buy 3 get 1 free' is a 25% discount, because you pay for 3 of the 4 you take home.

Keep it, don't just read it

Pathwise brings each idea back just before you'd forget it, with a quick question. Free on Android and on the web, in English and Persian.

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All lessons in this course

  1. Work left to right
  2. Round and fix
  3. Subtract by adding up
  4. Break it apart
  5. Doubling, halving and ×11
  6. Squares and near-squares
  7. Percent from building blocks
  8. The percent swap, and percent change
  9. Division and fractions in your head
  10. Estimate first
  11. Money maths
  12. Check yourself, and keep the skill