Understanding the Total Cost: A Detailed Guide to Calculating Pen Prices

Hi Atsu, thank you for your question: what is the total cost of 12 pens at 7.25 Nigerian naira? When dealing with simple arithmetic operations, the answer is straightforward: the total cost would be 87.00 naira. Here's how the calculation works:

To determine the total cost, you multiply the unit price (individual cost of one item) by the quantity of the item being considered. In this case, you multiply 7.25 naira by 12:

Step-by-Step Calculation

1. **Identify the unit price and quantity:** - Unit price: 7.25 naira per pen - Quantity: 12 pens

2. **Perform the multiplication:** - 7.25 naira * 12 87.00 naira

Therefore, the total cost for 12 pens at 7.25 naira each is 87.00 naira.

Why Understanding Total Costs is Important

Accurately calculating total costs is crucial in many aspects of daily life and business. Here are a few scenarios where you might need to perform similar calculations:

Shopping for Bulk Items: When buying in bulk, the total cost can help you make informed purchasing decisions. For example, if you need 24 pens instead of 12, the calculation would be 7.25 naira * 24 174.00 naira. Business Accounting: In a business setting, tracking the total cost of supplies can help manage budgets and maintain financial health. Accurate calculations ensure that the business operates efficiently and profitably. Educational Expenses: Atsu, as a student, measuring total costs can help you manage your stationery budget. Say if you need 12 pens, a ruler, and a notebook for school, you might calculate the total cost for each item before making a purchase.

Using Naira Currency: Understanding Nigerian Naira

Nigerian naira (NGN) is the official currency of Nigeria. Understanding the value and usage of the naira is essential for anyone living or doing business in Nigeria, as well as for tourists and international buyers.

Exchange Rates: The exchange rate of the naira can fluctuate, so it's important to keep up with current rates if you're dealing with foreign currency. For instance, if you are a foreign buyer looking to purchase items in Nigeria, knowing the current exchange rate can provide a better understanding of the total cost in your local currency. Denominations: Nigerian naira denominations include 1, 2, 5, 10, 20, 50, 100, and 200 naira notes, and 1, 2, 5, 10, 25, and 50 naira coins. Having these denominations in mind can make it easier to budget and calculate exact change. Inflation: Inflation can be a factor in the cost of goods over time. A calculation that might have been sufficient last year might not be suitable now due to inflation. Understanding the current state of inflation can help you adjust your calculations accordingly.

Conclusion

While the calculation of the total cost of 12 pens at 7.25 naira is straightforward, understanding the broader context of such calculations is vital. Accurate cost calculations are an essential part of financial literacy and can have significant implications for both personal and business finances. Feel free to ask more questions if you need further clarification or assistance with similar calculations.