Heinemann Maths Zone 9 - Chapter 1

01HMZVELS9EN_intro Page 0 Monday, June 30, 2008 10:53 AM
ccording to figures published in

September 2002 by Forbes magazine, Bill
Gates, chairman and co-founder behind the
giant Microsoft computer corporation, was the
richest person on Earth in 2001. His net worth
was estimated to be US$43 billion! This is the
equivalent of about A$83.4 billion. It is
interesting to note that Bill Gates' net worth
was estimated to have fallen about $US11
billion over the 200102 financial year. That
means he lost about US$30 million a day. You
can't help bad luck.
In 2001 the richest Australian was Kerry
Packer, who had a net worth of $US2.5 billion,
which is about one-third of Bill Gates' losses
over the year. There were two other Australian
billionairesFrank Lowy and Richard Pratt.
One positive aspect of his wealth is that Bill
Gates donates many, many millions of dollars
to health care. For example, he has donated
over $US50 million to AIDS/HIV research.
Starter 1
Prepare for this chapter by attempting the following questions. If you have
difficulty with a question, click on its Replay Worksheet icon on your Student
DVD or ask your teacher for the Replay Worksheet.
Worksheet R1.1
1 Convert the following fractions to decimals.

17
57
(a) --------(b) -----------100
1000
321 -----------------100 000
Worksheet R1.2
2 Convert the following decimals to fractions in simplest form.

(a) 0.79
(b) 0.003
(c) 0.014
Worksheet R1.3
3 Evaluate the following.

(a) 2 1--4- + 1 1--2-
(b) 3 1--3- 1 1--5-
(c)
1 1--5- 1 1--6-
(d) 2 1--4- 1 1--3-
Worksheet R1.4
Worksheet R1.5
5 A piece of material 8 m long is cut into two pieces, one 3 m long and the
other 5 m long. What is the ratio of the smaller piece to the larger?
Worksheet R1.6
6 A plank of wood 24 m long has an 8 m long piece cut off it. Express, in
simplest terms, the ratio of the piece remaining to the piece cut off.
Worksheet R1.7
7 $20 is divided between Anh and Kiao in the ratio 3 : 1. How much does
each receive?
Worksheet R1.8
8 Find:
(a) 5% of 20 m
Worksheet R1.9

(a) 5.8 + 2.9
(b) 12.7 3.6
(c) 5.2 1.5
(b) 10% of 63.5 km
(d) 6.2 0.03
(c) 22% of 18.1 cm
9 (a) 110% of a quantity is 71.5. Find the quantity.

(b) 98% of a quantity is 47.04. Find the quantity.
buying on terms
cheque
commission
credit cards
debit cards
deferred payment
earnings
EFTPOS
2
(c)
exponent
gross income
HELP
hire purchase
income
income tax
index
lay-by
HEINEMANN MATHS ZONE
loans
net income
overtime
PAYG
piece work
power
principal
rate of interest
retainer
salary
simple interest
superannuation
tax deductions
tax return
taxable income
wages
It is useful to begin this chapter with a quick review of fractions, decimals,

percentages and ratios. Note that the four operations for fractions and decimals
can be applied to directed numbers in the same way as they are for positive
numbers only.
Fractions and decimals

worked example 1
Evaluate the following.
(a) 1 1-5- + 2 2-3-
(b) 3 2-9- 2 2-3-
Steps
Solutions
(a) 1. Change mixed numbers to improper fractions.
(a) 1 1-5- + 2 2-36 8

= -- + -5 3
2. Convert to a common denominator.
18 40
= ----- + ----15 15
3. Perform the addition.
22
= ----15
4. Write the answer as a mixed number.
7
= 1 ---15
(b) 1. Change mixed numbers to improper fractions.
(b) 3 2-9- 2 2-329

8
= ----- -9
3
2. Change the to a and invert the fraction

after the operation.
29
3
= ----- -9
8
3. Cancel (if possible).
31
= 29
----- -8
93
4. Perform the multiplication.
29
= ----24
5. Write the answer as a mixed number.
5
= 1 ---24
1 m at he m at i c al
TECHNIQUES
01HMZVELS9EN_text Page 4 Monday, June 30, 2008 10:42 AM
Most scientific calculators have the facility to check fractions answers on them.
You will need a button like ab/c to be able to do this. For example, to check
part (b) from Worked Example 1, press:
3
ab/c
2
ab/c
9
+/
2
ab/c
2
ab/c
The screen should look like this: 1 5 24 . However, you need to be careful as
this operation on your calculator will not deal with every problem you choose to
enter. See if you can find the limit for your calculator. You should also note the use
of the +/ conversion button. On some calculators this is represented as
() . It is important to get to know your own calculator very well.
Decimal calculations, at this stage, are probably best handled by calculator
if you cannot do them in your head.You will probably find that you can actually
answer many decimal questions using mental arithmetic skills.
worked example 2
Evaluate the following.
(a) 12.304 + 13.09
(b)
Steps
(a) Use your calculator to find the solution.
(b) Use your calculator to find the solution.
6.78
1.2
Solutions
(a) 12.304 + 13.09
= 0.786
(b) 6.78 1.2
= 5.65
Converting fractions and decimals

When we want to convert a fraction or a mixed number to a decimal or a
decimal to a fraction or mixed number we should realise that the whole
number part will remain the same. So, we only have to change the fraction part
or the part after the decimal point.
worked example 3
(a) Write 2 3-5- as a decimal.
(b) Write 8.624 as a fraction in simplest form.
Steps
Solutions
3
(a) 1. -- means the same as 3 5; do this
5
calculation.
(a) 5 ) 3.0
0.6
2 3-5- = 2.6
2. Write the solution.

(b) 1. Write the decimal part in vulgar fraction form.
624
(b) 0.624 = ----------1000
2. Cancel down (if possible).
624 78
= ----------1000 125
3. Write the solution.
8.624
78
= 8 ------125
Remember when converting decimals to fractions that the number of zeros in

the denominator is equal to the number of digits after the decimal point.
Percentages
Percentages are another way of expressing quantities, or in particular the
change in quantities. Per cent is derived from the Latin per centum which means
by the hundred. From previous years you will recall that to convert a fraction or
a decimal to a percentage you simply multiply the original value by 100. Again,
scientific calculators enable us to do many percentage calculations very quickly.
worked example 4
Find:
(a) what percentage 50 is of 80
(b) the result when 2100 is increased by 22%
(c) the result when 2400 is reduced by 45%
Steps
Solutions
(a) 1. Write out the question as an expression.
(a)
= 62.5%
2. Use your calculator to find the answer.

Enter
1
0
0
8
=
50
----- 100%
80
. Write the answer.
(b) 1. Write out the question as an expression. The answer

will not be a percentage, so rewrite the question in
decimal form.
2. Use your calculator to find the answer. Write the
answer.
(c) 1. When you reduce by a percentage you are
subtracting that amount from the whole. Subtract
from the whole (100%) to find the percentage
remaining.
2. Write out the question as an expression. The answer
will not be a percentage, so rewrite the question in
decimal form.
3. Use your calculator to find the answer. Write the
answer.
(b)
2100 122%
= 2100 1.22
= 2562
(c)
100% 45% = 55%
2400 55%
= 2400 0.55
= 1320
As with many calculator exercises, these examples could have been

approached in a variety of ways.
TECHNIQUES
Ratios
Another way of expressing the connection between two quantities is as a ratio.
In previous years we have seen that we need to express the two quantities in
the same unit before writing the ratio. Ratios are written in the form a : b. Recall
that the order of a ratio is important. In general, a : b (is not equal to) b : a.
a
Ratios can also be expressed in fraction form. The ratio a : b can be written as --.
b
This year we will look at increasing or decreasing quantities in a given ratio,
just as we have been doing with percentages. This is achieved simply by
multiplying the quantity by the ratio expressed in fraction form. Whether we are
increasing or decreasing a quantity the ratio is expressed in the order new : old.
worked example 5
2
(b) Decrease 330 m in the ratio -- .
3
(a) Increase $400 in the ratio 6 : 5.

Steps
Solutions
(a) 1. Express the ratio in fraction form.
6
(a) 6 : 5 = -5
2. Multiply the quantity by the fraction

just formed.
3. Express the answer in written form.
(b) 1. Express the ratio in fraction form
(already done).
6
$400 -- = $480
5
$400 increased in the ratio 6 : 5 is $480.
2
(b) -3
2. Multiply the quantity by the fraction

just formed.
2
330 m -- = 220 m
3
3. Express the answer in written form.
2
330 m decreased in the ratio -- is
3
220 m.
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exercise 1.1
eTutorial
eTutorial
Fractions, decimals,
percentages and ratios
Skills

(a)
(d)
(g)
3 1--4
1 2--3
+ 3 2--3
2 2--5-
(b)
2 5--6-
2 3--5-
(e)
3 2--- 2 5--3
7
3
1
--15 25
1 1--4-
5
2 ----12

(a) 3.6 6.1
(d) 2.4 3.2
(g) 2.2 3.1 2.11
(h)
4 1--42 3--4-
(c)
2 2--5-
(f)
1 1--4- + 2 2--3- + 1 1--6-
(i)
1 1--3-
3 2--72 3--4-
Worked Example 1
Hint
Interactive
1
1 ----12
(b) 6.98 + 11.54

(c) 5.19 + 4.876
(e) 5.8 3.2
(f) 4.8 1.5 4.23
(h) 3.2 2.41 1.3 (i) 2.456 + 1.12 2.1
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Worked Example 2
Hint
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3 Convert the following fractions to decimals.

2 2--5
21 4--5-
(a)
(d)
(b)
3 1--8-
(c)
(e)
123 --34
(f)
12 7--8
321 3--8-
4 Convert the following decimals to fractions in their simplest form.

(b) 7.745
(c) 15.8088
(a) 2.765
(f) 632.6524
(d) 19.9986
(e) 453.7625
5 3.84 2.2 (1.1) is closest to:
A 1.42
B 1.804
C 1.42
6
2 2--5
1 1--4 5 21
-----40
( 2 1--2- )
D 6.26
E 1.804
13
D 3 ----20
3 --18
29
-----40
8 Find the result when 1500 is increased by:

(a) 15%
(b) 25%
(c) 45%
29
-----40
(d) 120%
9 Find the result when 2200 is reduced by:

(a) 10%
(b) 40%
(c) 66%
(d) 95%
10 (a) Decrease $75 in the ratio 8 : 15.

(b) Increase $50 in the ratio 7 : 5.
(d)
11 (a)
(b)
(c)
Worked Example 3
Hint
is closest to:
7 Writing answers correct to two decimal places, find what percentage:

(a) 30 is of 90
(b) 25 is of 125
(c) 40 is of 120
(d) 20 is of 110
(e) 15 is of 100
(f) 25 is of 80
(g) 16 is of 45
(h) 21 is of 120
(i) 32 is of 85
(c)
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Worked Example 3
Hint
11
Increase 400 minutes in the ratio ------ .
2
2
Decrease 450 minutes in the ratio --- .
3
The percentage 22 is of 170 is closest to:
A 22
B 31.4
C 13.1
D 21.9
E 12.9
When 1650 is increased by 35% the result is closest to:
A 1685
B 2227.5
C 577.5
D 1072.5
E 1615
When 930 m is decreased in the ratio 6 : 11 the result is closest to:
A 947 m
B 913 m
C 507 m
D 1705 m
E 772 m
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Worked Example 4
Hint
Worked Example 4
Worked Example 4
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Worked Example 5
Hint
Applications
12 Write three whole numbers that when increased in the ratio 7 : 3 give an
12
answer between 100 and 200.
13 Copy and complete the following table.
Common
fraction
(a)
(b)
(c)
(d)
(e)
(f)
1--2
Decimal
fraction
Percentage
Ratio
0.45
Hint
72%
2:5
0.56
3:8
TECHNIQUES
14 The student population at Growthtown Secondary College this year is 840.

This represents an increase of 20% over last year.
(a) What was the student population last year?
(b) If a further growth of 15% is predicted for next year, what will the
student population be then?
Animation
15 The number of schools participating in a particular local maths day this

year compared to last year has increased in the ratio 6 : 5.
(a) If fifteen schools participated
last year, how many are
participating this year?
(b) Express the increase as a
percentage.
Analysis
16 (a)
(i) Increase 100 by 20%

(ii) Now decrease the answer obtained by 20%
(b) (i) Increase 300 by 30%
(ii) Now decrease the answer obtained by 30%
(c) Can you reach a conclusion from what you have done?
17 (a)
(i) Increase 100 in the ratio 5 : 4

(ii) Now decrease the answer obtained in the ratio 4 : 5
(b) (i) Increase 300 in the ratio 4 : 3
(ii) Now decrease the answer obtained in the ratio 3 : 4
(c) Can you reach a conclusion from what you have done?
Discounts
Discounts, or a reduction in the marked price of an item, can be offered for a
variety of reasons. A store may be overstocked with certain items and might wish
to clear them. Established clients are often given special discounts. Reductions
can be made for purchases in bulk to encourage high-volume sales.
Tradespeople can get discounts in their trade areafor example, carpenters get
discounts on timber. The aim of a discount is to encourage potential customers
to buy.
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worked example 6
Bullseye Store advertises a summer clearance sale in which all items of clothing are
discounted by 25%. How much will a shirt, marked at $46, sell for at the sale?
Steps
1. Calculate the percentage of the price which is
retained.
2. Convert the percentage retained into a decimal.
This value is the reduction factor (RF ).
3. Multiply the marked price (MP) by the reduction
factor (RF ) to find the selling price (SP).
Solution
% retained = (100 discount)%
= (100 25)%
= 75%
75% = 0.75
SP = RF MP
= 0.75 $46
= $34.50
Profits and losses

Whenever investment of any kind takes place there is the potential for a profit
or a loss to occur. A profit occurs when the investment increases in value. A
loss occurs when the investment decreases in value. If we make neither a profit
nor a loss we say we break even.
Technically, profit is the difference between the selling price of a product (or
investment) and the purchase price of the product (or investment) after taking
into account all costs associated with the purchase and sale. Profit is often
expressed as a percentage; in these circumstances we can talk about the
percentage profit. The percentage profit can be expressed in terms of the cost
price or the selling price.
To calculate the percentage profit you divide the profit by the amount with
which it is to be compared (i.e. cost price or selling price) and multiply by 100.
profit
% profit = ------------------------- 100%
CP or SP
worked example 7
A hi-fi system costs an electrical store $950. It sells the system for $1250. Calculate, correct
to two decimal places, the percentage profit as a percentage of:
(a) the cost price
(b) the selling price
Steps
(a) 1. Calculate the profit.
Solutions
(a) Profit = SP CP
= $(1250 950)
= $300
TECHNIQUES
2. Substitute the known values into the formula

profit
% profit = ------------------------- 100
CP or SP
(b) 1. Calculate the profit.

2. Substitute the known values into the formula
profit
% profit = ------------------------- 100
CP or SP
profit
% profit = ------------- 100%
CP
300
= -------- 100%
950
= 31.58%
(b) Profit = $300
profit
% profit = ------------- 100%
SP
300
= ----------- 100%
1250
= 24%
Assuming a profit is made, the percentage profit based

on the cost price will always be greater than the
percentage profit based on the selling price. Can you
explain why?
Some stores have a policy regarding the percentage
profit required on each line of goods. For instance, a
furniture store might insist on a 65% profit on items
such as lounge suites, couches and armchairs. We can
find a value by which we can multiply the cost price to
find the selling price. The cost price is said to be 100%,
we want a profit of 65%, so the selling price must be
100% (CP) + 65% (profit). So, the selling price is 165%
of the cost price. For convenience we usually use the
decimal equivalent of the percentage.
SP = PF CP
100 + profit %
where PF, the profit factor, is equal to ------------------------------------100
worked example 8
A retail store has a policy of selling their merchandise so that the percentage profit on the
cost price is 65%. What would a couch which cost the firm $300 be sold for?
Steps
1. Write down the formula connecting cost price
(CP ), selling price (SP) and profit factor (PF ).
2. Calculate (PF ).
10
Solution
SP = PF CP
( 100 + 65 )%
PF = ----------------------------100
= 1.65
3. Substitute the known information into the formula

and calculate the selling price.
SP = 1.65 $300
Selling price = $495
As mentioned earlier, we cannot calculate the profit until we have taken into
account all of the costs associated with the investment. These costs vary,
depending on the type of investment. For share transactions, for instance,
there are fees which must be paid when the shares are bought and when they
are sold. For property investments there are many more types of costs which
must be taken into account.
worked example 9
A couple decide to buy a hectare of land for $87000 as an investment. Ten years later they
decide to subdivide the block into four and sell the blocks.
During that time they paid $3500 in rates and $2300 for maintenance. The cost of the
subdivision was $3500 per block paid at time of sale. If their final selling prices for the
blocks were $45000, $37000, $28000 and $42000 respectively and the cost associated
with the sales (commission to real estate agent) was 2% of the sales price, what was the
percentage profit:
(a) on cost price
(b) on selling price?
Steps
Solutions
$
(a) 1. Calculate total costs associated with the

property.
(a) Purchase price

Rates
Maintenance
Cost price
Sales price:
Block 1
Block 2
Block 3
Block 4
Total sales price
2. Calculate the total sales price.
3. Calculate total costs associated with the sale

at time of sale.
4. Subtract from sales price to obtain the amount

received. (This is technically called the selling
price; we use SP to represent it.)
87000
3500
2300
92800
45000
37000
28000
42000
152000
Subdivision
4 3500
14000
Commission
2% of 152000 3040
17 040
Amount received (SP) 134 960
TECHNIQUES
11
$
5. Subtract cost price from amount received to
obtain profit.
6. Calculate % profit on CP.

Put profit over CP and convert to percentage.
(b) Calculate % profit on SP.

Put profit over SP and convert to percentage.
Amount received or
selling price (SP)
Cost price (CP)
Profit
% profit on CP
42160
= -------------- 100
92800
= 45.43%
(b) % profit on SP
42160
= ----------------- 100
134960
= 31.24%
134960
92800
42160
This calculation does not take into account the effect of inflation or taxation on
the investment.
Further calculations
Often as customers we can see only the final price that is paid, after profits are
added, commissions calculated, and discounts allowed. The following
approach allows us to reverse the processes above.
worked example 10
A small business has a policy of aiming for 75% profit on cost price on all items. What is the
cost price of a vase sold for $56?
Steps
1. Write the appropriate formula.
2. Convert percentage profit to profit factor, PF
(in decimals).
3. Substitute known information.
4. Make CP the subject of the formula and evaluate.
Solution
SP = PF CP
PF = (100 + 75)%
= 175%
PF = 1.75
$56 = 1.75 CP
$56
CP = ---------1.75
= $32
worked example 11
A video recorder has a sale price of $450 after a discount of 20% is subtracted. What was
the original marked price of the recorder?
12
Steps
1. Write the appropriate formula.
2. Convert discount to reduction factor RF and write
as a decimal.
4. Make MP the subject of the formula and evaluate.
Solution
SP = RF MP
RF = (100 20)%
= 80%
RF = 0.80
$450 = 0.80 MP
$450
MP = ----------0.80
= $562.50
exercise 1.2
Applications of percentages
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Skills
1 Calculate the selling price on the following items.

(a) A $24 pair of shorts discounted by 15%
(b) A $64 skirt discounted by 40%
(c) A $420 evening gown discounted by 37.5%
2 The selling price of a sweatshirt marked at $28 after a discount of 16% is:
A $28 0.16
B $28 0.84
C $28 28 0.84
D $28 1.16
E $28 28 0.28
3 Calculate the percentage profit or loss (on the selling price) in the
following situations. Write your answers correct to one decimal place.
(a) CP = $45, SP = $54
(b) CP = $360, SP = $504
(c) CP = $4200, SP = $4050
(d) CP = $480, SP = $456
4 If a table cost $486 and was subsequently sold for $448, the percentage
profit or loss based on the cost price was:
( 486 448 ) 100
( 486 448 ) 100
A -------------------------------------------- % profit
B -------------------------------------------- % profit
486
448
( 486 448 ) 100
( 486 448 ) 100
C -------------------------------------------- % loss
D -------------------------------------------- % loss
486
448
(------------------------------------------486 448 ) 486E
% loss
100
5 Calculate the selling price for the following cost prices and percentage
profits (on cost price).
(a) CP = $48, percentage profit = 45%
(b) CP = $60, percentage profit = 60%
(c) CP = $420, percentage profit = 24%
(d) CP = $4890, percentage profit = 28%
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eTester
Worked Example 6
Hint
Worksheet C1.1
Worked Example 6
Hint
Worked Example 7
Worksheet C1.2
Worked Example 7
Hint
Worked Example 8
Worksheet C1.3
TECHNIQUES
13
6 An investor buys 0.4 hectare of land in

Apollo Bay for $180000. The land is
subdivided into four building blocks and
sold two years later for $45000, $34000,
$58000, $60000. If the cost of surveying
and subdivision was $1200, the cost of
maintenance on the land $120 per year,
the rates $890 p.a. and the cost of the
agents commission 1.5% of the sale price
of the land, calculate the percentage profit
or loss on the cost price.
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7 A hardware store has the policy of marking up their goods by 85%.

Calculate the cost price if the items are sold for:
(a) $3.70
(b) $51.00
(c) $547.00
(d) $77.80
8 An electrical bulk store buys a quantity of different brands of personal

stereos. What price should they be marked at if the store intends to offer a
15% discount at the end of summer, and wishes to obtain the following
prices for them at the end-of-summer sale?
(a) $34
(b) $51
(c) $78
(d) $67
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Worked Example 9
Hint
Worked Example 10
Hint
Worked Example 11
9 If a TV set is sold for $840 at a 65% profit, the cost of the set is:
A $840 0.65 840
B $840 0.65
C $840 0.35
$840
D -----------E $(840 0.35 840)
1.65
10 If a desk is for sale for $140 after a 25% discount, it means that it was
originally marked at:
A $175
B $245
C $560
D $16
E $186.67
Applications
11 A builder buys $840 worth of timber to build an extension. If he is allowed

a 12.5% discount, how much does he pay?
Hint
Hint
12 A purchasing cooperative gets a discount of 24% on groceries bought in

bulk. How much do they save on $370 worth of groceries?
13 A stallholder at a market buys 20 kg of peanuts for
$65, 5 kg of hazelnuts for $30 and 1 kg of cashews
for $13. He mixes them together and puts them
into plastic bags containing 200 g of mixed nuts
and sells them for $1.00. If the plastic bags cost
2 cents each, what is the percentage profit on
the selling price of the nuts?
14 A mechanic buys a car at an auction for $3120. The
car is then repaired at a cost of $430. It is resprayed
and has its panels straightened for $840. The car is
sold for $5500. Calculate the percentage profit on
the selling price if the cost of advertising was $80.
14
15 A store purchased a bulk order of pyjamas cheaply for a sale. If a customer

paid $11 for them at the sale, what were they marked at prior to the sale if
they were reduced by 30%?
Hint
Hint
16 A gift shop buys crystal glasses for $10.50 each, and wishes to make a 60%
profit on cost price.
(a) What must they be sold for?
(b) What must they be marked at in order for a 20% discount to be
offered if the 60% profit is still made?
17 (a) A stereo system has a marked price of $999. State three different
17
percentage discounts, correct to one decimal place, that would make
the selling price of the stereo system between $750 and $800. Show
the calculations that allow you to state your answer.
(b) A lounge suite is sold for $2450. State three
different percentage discounts, correct to
one decimal place, that could have been
applied to the lounge suite if you know the
marked price was somewhere between
$3000 and $3200. Also state the marked
price for your discount. Show the
calculations that allow you to state your
answer.
Analysis
18 (a) A furniture store purchases a dining table and chairs for $750. It
marks up this price by 45% to obtain its selling price.
(i) What is the selling price of the dining set? State your answer
correct to the nearest ten dollars.
(ii) The furniture is not selling so they decide to discount it. What
will the sale price be if they reduce it by 45%? State your answer
correct to the nearest ten dollars.
(iii) What percentage saving will they be able to advertise if they
take the price back to their cost price? Give your answer correct
to one decimal place.
(b) If you wanted to be able to advertise a discount of 30% on goods
that cost you $5000 and still make a profit of 10% at what price
would you initially advertise them?
19 (a) An investor purchased 1 hectare of waterfront land for $675000. The
land was subdivided into 6 blocks and sold three years later for
$125000, $125000, $150000, $175000, $190 000 and $230000. If the
cost of the subdivision was $5000 per block paid at the time of the
sale, the cost of maintenance of the land was $450 per year, the rates
were $1250 per year and the cost of selling the land was 1.75% of the
sale price of the land, calculate the percentage profit or loss on the
cost price, correct to one decimal place.
TECHNIQUES
15
(b) At what approximate average price

could the blocks have been sold for
the investor to break even? State
your answer correct to the nearest
ten dollars.
(c) If the investor wanted a profit of at
least 15% on the investment what
would the approximate average
price of the blocks have been? State
your answer correct to the nearest
ten dollars.
Homework 1.1
Euclidean division
Finding the highest common factor for a pair of numbers can often be achieved by using trial and
error. However, there is a better way and it is called Euclidean division.
This example shows how the Euclidean division algorithm can be used to find the highest
common factor of 128 and 56.
128 2 (56) = 16
56 3 (16) = 8
16 2 (8) = 0
highest common factor is 8
(1)
(2)
(3)
1 Where do the numbers in each part of line (1) come from?

2 Which numbers are the same in line (2) and line (1)? How have they changed positions?
3 Using the same pattern, fill in the following to find the highest common factor of 110 and 30.
110 3 (30) = .
30 1 =
2=0
highest common factor is
4 Write down all the steps to do this process, in your own words.
5 Using the Euclidean division algorithm, find the highest common factors of each of the
following pairs of numbers.
(a) 124; 36
(d) 64; 322
(b) 96; 143

(e) 136; 158
Note: always start with the bigger number.
16
(c) 112; 48
(f) 1024; 128
An index is a form of mathematical shorthand which allows us to represent a

very large or very small number in a more suitable format.
An index is also called a power or an exponent. In this chapter, we will use
all these words for an index.
index or power
= 5 5 5 5 = 625
54
base
4 factors
basic numeral or value
The plural of index is indices. An index has no meaning without its base.
worked example 12
Simplify:
(a) 24 23
Steps
(a) 1. Write each term in factor form.
2. Count the number of factors and write in
index form.
(b) 1. Write this division in fraction form.
(b) 37 35
Solutions
(a)
24 23
=2222222
= 27
(b)
37 35
37
= ----53
2. Write each term in factor form and

cancel factors of 3 in both the numerator
and denominator.
3. Write the factors of 3 remaining.
4. Count the number of factors and write in
index form.
3333333
= ---------------------------------------------------33333
=33
= 32
In these examples the processes can be simplified to 24 23 = 24 + 3 = 27 and

37 35 = 37 5 = 32. These two processes lead us to the first two laws of indices.
TECHNIQUES
17
When multiplying two (or more) numbers with the same base, keep the
base and add the indices.
am an = am + n
When dividing two numbers with the same base, keep the base and
subtract the indices.
am
am an = -----n- = am n
a
Remember: These index laws only apply to numbers in index form with the same base.
worked example 13
Simplify:
(a) 9jq3 4j 9q5
6 8
(b) 5c13 c6
Steps
(a) 1. Group the coefficients together and
terms with the same base together.
(Remember: j = j 1)
2. Multiply the coefficients and use index
laws on the terms involving indices.
3. Write the final answer in the simplest
way.
(b) 1. Write as a fraction, showing all
operations involved.
10m n
(c) ---------------4 7
16m n
Solutions
(a)
9jq3 4j 9q5
= (9 4) (j j 9) (q3 q5)
= 36 j 1 + 9 q3 + 5
= 36 j 10 q8
= 36j10q8
(b)
5c13 c6
5 c 13
= ---------------c6
2. Simplify the terms with the same base.
= 5 c13 6
= 5 c7

way.
= 5c7
(c) 1. Group the coefficients together and all

terms with the same base together.
(c)
10m 6 n 8
------------------16m 4 n 7
10 m 6 n 8
= ------ ------4- ----716 m
n
2. Cancel the coefficients and use index

laws on the terms involving the same
base.
way.
18
10
= ------ m6 4 n8 7
16
5
= -- m 2 n 1
8
5m 2 n
= -----------8
01HMZVELS9EN_text Page 19 Monday, August 4, 2008 4:02 PM
You will remember producing factor trees such as:

72
36
18
So 72 = 2 2 2 3 3
= 23 32
when expressed as a product of prime factors

when written in index form
10 5
Coefficients are evaluated by normal operations, i.e. ----- = - , not 10 16.
16 8
exercise 1.3
Multiplying and dividing in

index form
Skills
e
e
1 Simplify each of the following. (Remember: 3 is the same as 31.)

(b) 37 3
(c) 59 53
(a) 24 23
3
6
4
2
(d) p p
(e) 6x x
(f) 11y7 y9
(g) j 5 3j 6
(h) 4e 3e4 6e
(i) m3 7m 2m4
2 Simplify each of the following.
(b) g3 gh7
(a) a3b2 a6
(d) m4n3 m7n8
(e) p2q3 pq
6
3
7
(g) 5v w v
(h) 9x3y2 y5
(j) 7c11d 9 8c3d 5
(k) e6f 2 2ef 3e3f 4
(c)
(f) tu t7u9
(i) 3a7b4 4a2b6
(l) 6g2h5 3g3h2 3gh

(a) 74 72
(b) 39 34
(d) 5a7 a3
(e) 35g10 7g6
4c 12
12d 3
(g) --------(h) ----------c
d
(c)
(f) 42h5 14h3

e7
(i) -------3
6e
e4
28
e7f 2
25
e
e
e
e
e
e
Worked Example 12
Hint
Worked Example 13
Hint
Worksheet C1.4
Worked Example 13
Hint
Worksheet C1.5
TECHNIQUES
19
f 12
-------9f 10
5m 6 n 7
(m) --------------m3
7
a b5
(p) ---------37b
6x 10 y 9 z 4
(s) -------------------30x 2 y 7 z 2
(j)
12j 6
(k) ---------536j
6v 3 w 6
(n) -------------w4
12c 9 d 6
(q) --------------2c 5 d 4
4a 6 b 12 c 9
(t) --------------------36a 5 b 4 c 3
4 (a) 5p2q q4 3p3q2 simplifies to:

A 8p5q7
B 15p5q6
C 15p5q7
42x 5 y 7 z 6
- simplifies to:
(b) -------------------14x 4 y 2 z 3
B 28xy5z3
C 3xy5z3
A 3xy5z2
9k 9
-----------8
33k
x3y2
(o) ---------4x
15e 9 f 7
(r) -------------5e 3 f
7p 9 q 6 r 5
(u) -----------------28p 7 qr 2
(l)
D 8p5q6
E 16p5q7
D 28xy5z2
E 3x9y9z9
Worksheet C1.6
Worked Example 13
Hint
Hint
5 Write each of the following as products of prime factors written in index

form. (You may like to use a factor tree.)
(a) 200
(b) 126
(c) 732
(d) 540
(e) 108
(f) 2025
(g) 68
(h) 1575
66 Write three pairs of terms that multiply together to give 12x7y3.
Applications
7 Copy and complete each of the following.

x7 x9
6y 4 y 6
--------------------------------(a)
(b)
12
x
y2 y5
6y
x
= -----(Add indices)
= -------(Add indices)
y
x 12
= x
(Subtract indices)
= 6y
(Subtract indices)
x8 x7
t7
----------------(a) --------------(b)
t 2 3t 4
x6
6
8q 3q
c6 c9
-------------(d) -------------------(e)
12q 4
c5 c3
3f 7 f 2
4q 7 9q 6(g) ----------------(h) ------------------------5
4f 6f
12q 2 3q 5
f8 f6
- simplifies to:
9 (a) ------------f 10
A f4
B f6
15x 9 3x 6
- simplifies to:
(b) -----------------------9x 10 x 4
B 9x
A 5x9
(c)
(f)
(i)
4a 7 3a -4
---------------------a3
4
j j8
------------j2 j5
8x 3 6x 7
--------------------------12x 6 10x 2
C f 48
D f 12
E f2
C 5x
D 9x9
E 5x29
Analysis
10 Expand the following expressions, using the appropriate index law.

(b) 7k3(6 k)
(c) b(b3 + a)
(a) a(a2 + 3)
4
3
4
(e) 6x (3 + 4x )
(f) 12v3(1 2v5)
(d) 5p (9 + p)
(h) 9p3(5p + 2q5)
(i) 3s2(5t3 2s2)
(g) 5y3(5x 2y6)
20
11 Complete the table of powers of 5. Make the table vertical, as the numbers
get quite big.
51
52
53
25
125
54
55
56
57
58
59
510
511
512
513
514
Now use this table of values, and the appropriate index laws, to evaluate
the following. Do not do any further multiplying or dividing, just read
the answers from the table.
(a) 125 125
(b) 125 625
(c) 57 57
56 57
(d) ---------------(e) 390625 3125
(f) 48828125 15 625
54
56 59
(g) 513 57
(h) 512 (52 52 52) (i) ---------------53 54
The zero index

To simplify 53 53, we can use one of two methods.
Method 1
Use the appropriate index law.

53 53 = 53 3
= 50
Method 2
Write in factor form and cancel down.

53 5 5 5
= -----3 = --------------------- = 1
555
5
This means that 53 53 is equal to 50 or 1. In other words, 50 = 1.
a4
What about simplifying -----4 ?
a
Method 1:
Method 2:
4
a-----4 a---------------------------- a a aa----= a4 4
=
4
a
a4 a a a a
53
53
= a0
Remember that any

number other than 0
divided by itself equals
one.
=1
So
a0 = 1
This pattern forms the next index law.
Any number raised to the power of zero equals one.
a0 = 1
TECHNIQUES
21
worked example 14
Simplify:
(a) 4p0
2x 4 x 3
(b) ---------------x5 x2
Steps
(a) Use the index law: p 0 = 1
m3n6
(c) ---------m3n
Solutions
(a)
(b) 1. Use the index law for multiplying with

indices: x4 x3 = x4 + 3, x5 x2 = x5 + 2
(b)
4p 0
= 4 p0
=41 =4
2x 4 x 3
---------------x5 x2
2x 7
= -----x7
2. Use the index law for dividing with

x7
indices: ----7 = x7 7
x
= 2x 0
3. Use the zero index law: x 0 = 1
=21 =2
(c) 1. When dividing numbers with the same

base, subtract the powers.
2. Use the zero index law: m0 = 1
(c)
m3n6
---------m3n
= m0n 5
= 1 n5
= n5
Raising a term in index form

to a power
Consider simplifying (72)3. We have 72 multiplied by itself three times.
(72)3 = 72 72 72
= 72 + 2 + 2
(Using the first index law)
= 76
Notice that 2 3 equals 6.
(m5)4 = m5 m5 m5 m5
What about (m5)4?
= m5 + 5 + 5 + 5
= m20
What does 5 4 equal?
In both cases, we can see that the base remains the same and the new index
is obtained by finding the product of the two indices.
When raising a number in index form to a power, keep the base and
multiply the indices.
(am)n = amn
22
worked example 15
Simplify: (23)5
Steps
Keep the base and multiply the indices.
Solution
(23)5
= 23 5
= 215
worked example 16
Simplify:
(a) (p3)4 (p5)2
(b) (m5)3 (m2)6
Steps
(a) 1. Keep the base and multiply the powers.
Solutions
(a)
= p22
2. Keep the base and add the powers.

(b) 1. Keep the base and multiply the indices.
(b)
(m5)3 (m2)6
= m5 3 m2 6
= m15 m12
= m3
2. Keep the base and subtract the indices.
exercise 1.4
(p3)4 (p5)2
= p3 4 p5 2
= p12 p10
Further exponential notation
Skills

(b) 7g0
(a) k0
(e) c3d 0e0
(f)
km 0
--------n0

(a) y4 y4
(b) 3x7 x7
a5b4
(e) --------a2b4
(f)
6h 4 r 3
-----------2h 4 r 3
(c) 7 + g0
(g)
(d) a0b2
3a4b0
(h)
3x 4 z
(c) ---------z
12e 3 f -2
(g) -------------16e 3
8g11h0
h5k8
(d) --------h5
15r 2 s -9
(h) -------------27r 2
33 Write three different terms that 27x3y7 could be divided by so that no

x appears in the answer.
(a) (23)4
(b) (36)2
(e) (x3)3
(f) (75)0
(a6)2
(c)
(g) (k0)4
(b7)3
(d)
(h) (p0)2
e
e
e
e
e
e
e
e
Worked Example 14
Hint
Worksheet C1.7
Worked Example 14
Hint
Worked Example 15
Hint
Worksheet C1.8
TECHNIQUES
23
01HMZVELS9EN_text Page 24 Monday, August 4, 2008 4:04 PM

(b) (k3)8 k3
(c) (m6)3 m2
(a) y5 (y3)4
(d) (y2)4 (y5)3
(e) (m3)4 (m2)0
(f) (f 5)4 (f 3)0
66 Write three different sets of values for m and n so that (am)n simplifies
to a24.
e
e
Worked Example 16
Hint
Applications

x6 x5
(a) --------------x 11
3k 2
(b) -------------k 5k
2c 6 5c -2
(e) --------------------c 7 4c
(f)
e 6 e 2---------------3e 2e
a8 b5
- simplifies to:
8 (a) --------------a2 a6
B a10b11
A a16b5
3c 7 8d 4
- simplifies to:
(b) -----------------------12c 3 4c 4
d4
B ----A 2d 4
2
(a) (m5)2 m7
(c)
c4 d
(g) --------------------2c 2 5c 2
n4 n3
(d) ---------------n5 n2
D b11
E a12b5
c4d4
C ---------24
d4
D -----24
c4
E ---4
(c)
(k 4 ) 3
----------k9
(n 8 ) 2
(d) ----------n6
C k60
D k15
E k13
C b5
D b12
E b17
11 Use the appropriate index law to find the value of x in each of the
following.
(a) 1012 105 = 10x
(b) (56)3 = 5x
(c) (6x)2 = 620
74 7x
-= 1
(d) --------------7 11
( 34 )x
-= 1
(e) ----------3 12
( 56 )x ( 5x )2
- = 54
(f) ----------------------------54
When we work we usually expect to get paid for the work we have done.
The payment or earnings we receive can be calculated in a number of ways
depending on the type of work we are doing or on the type of employment
contract we have signed.
Piece work largely applies in manufacturing, especially in the clothing
industry. Piece work means workers in a factory or at home are paid per item
(or garment) produced, rather than for the number of hours worked.
24
Hint
Hint
Hint
Homework 1.2
p7 q5
(h) ---------------------15p 2 p 5
C b5
(b) (p6)4 p10
10 (a) (k2)3 (k5)2 simplifies to:

A k16
B k12
(b) (b5)4 (b3)5 simplifies to:
A b4
B b
4a 3
---------------2
a 7a
worked example 17
Emma is employed sewing dresses. She is
paid at the rate of $7.50 per dress and she can
complete 42 dresses each week. Calculate her
income per week.
Steps
Multiply the number of
items produced (42) by the
rate ($7.50).
Solution
Income = 42 $7.50
= $315
Wages largely apply to factory work, some office work, and shop work. Wages
are based on an hourly (or standard) rate of pay. There is a basic number of
hours which an employee must work within specified hours. Any extra work
may be paid as overtime at a higher hourly rate.
worked example 18
Sim is employed at a photographic studio. He receives $12.30 per hour for a standard
35 hour Monday to Friday week, but on Saturday is paid time-and-a-half (i.e. 1.5 times the
standard hourly rate) for the first three hours and double time (twice the standard rate)
thereafter. One particular week, Sim worked 4.5 hours on Saturday in addition to the
standard hours. How much money did he earn?
Steps
1. Calculate the number of hours worked
at each of the rates.
2. Multiply each number of hours by the

appropriate hourly rate.
3. Add up the individual amounts to find
the total wage.
Solution
Standard hours: 35
Time-and-a-half: 3 hours (first three hours
on Saturday)
Double time: 1.5 hours (the rest of the time
on Saturday)
Standard hours:35 $12.30 = $430.50
Time-and-a-half:3 $12.30 1.5 = $ 55.35
Double time:1.5 $12.30 2 = $ 36.90
Total = $522.75
Commission is usually paid to salespeople, e.g. real estate agents, car sellers,
sales representatives. Depending on the type of selling, salespeople usually
have to keep some office hours, so a retainer or flat amount per week is also
paid. The commission is an extra payment of a percentage of the value of the
sales made.
TECHNIQUES
25
To calculate the amount of commission (C) to be paid you need to multiply

the rate of commission (R) by the selling price (SP) of the goods. We express
this as a formula: C = R SP.
In the formula, R must be in decimal form but questions often ask for, or give, the rate (r)
r
as a percentage. In these cases we use R = ------- .
100
worked example 19
Lina works as a real estate agent. She receives a retainer of $130 per week plus commission
on sales. The rate of commission is variable, with a 0.5% commission on the first $150000
and 0.25% thereafter. How much is she paid if she sells a house for $220 000?
Steps
1. Write the formula connecting C, SP and R.
2. Convert R for first $150 000 into a decimal.
Solution
C = R SP
R = 0.5% = 0.005
3. Substitute into the formula and

calculate the commission.
4. Convert R for the remaining amount into a
decimal.
5. Calculate the remaining amount.
C = 0.005 $150 000

= $750
R = 0.25% = 0.0025
6. Substitute into formula.

7. Add total commission and retainer.
Remaining amount = $(220 000 150 000)

= $70 000
C = 0.0025 70 000
= $175
Total = $(130 + 750 + 175)
= $1055
worked example 20
An encyclopedia salesperson receives a commission of $450 on the sale of a $2680 set of
encyclopedias. Calculate the rate of commission as a percentage.
Steps
1. Write the formula connecting C, SP and R.
3. Make R the subject of the formula and
calculate the rate.
450
R = ----------2680
= 0.167 910 447
= 16.79%
(correct to two decimal places)
4. Convert to percentage ( 100).
26
Solution
C = R SP
$450 = R $2680
Salary is normally paid to members of staff. At a lower level the employee may
be paid for overtime, or receive some time off instead. At higher levels of salary
the remuneration is often given for the job done, regardless of the number of
hours worked.
Earnings
Piece work: Payment per item produced.
Wages:
Hourly rate of pay.
Extra work may be paid as overtime at penalty rates
(time-and-a-half, double time).
Commission: Retainer or flat fee plus percentage of the value of
sales made.
commission = rate selling price
C = R x SP
Salary:
Weekly, monthly or annual rate of pay. Overtime may be
paid, or time off given instead.
exercise 1.5
Earnings
Skills
1 A semitrailer driver is paid $12.75 per tonne of timber delivered to a

wood-chipping mill. If he delivers 120 tonnes to the mill, how much will
he be paid?
2 A driver of an ore carrier is paid at the rate of $25.70 per load. In a day a
driver delivers seven loads. How much is she paid?
3 A casual worker is paid 15 cents to produce rosettes in football colours.
If he produces 1500 in a two-week period, he will receive:
A $1500 15
B $1500 0.15
C $1500 15 2
D $1500 0.15 2
E $1500 15 + 2
4 If a factory worker, paid at the rate of $7.80 per hour, works 7 hours
standard plus 3 hours at time-and-a-half and 1 hour double time, the
e
e
e
e
e
Worked Example 17
Worked Example 17
Hint
Worked Example 17
Hint
Worked Example 18
TECHNIQUES
27
wages for that day will be:

A $(7 7.8 + 3 3.9 + 1 15.6)
C $(7 7.8 + 3 7.8 + 1 7.8)
E $(7 7.8 + 3 11.7 + 1 15.6)
B $(7 7.8 + 3 7.8 + 1 15.6)

D $(7 7.8 + 3 3.9 + 1 3.9)
5 A casual worker earns $8.75 per hour stacking shelves in a supermarket. If

she works 18.5 hours in 5 days she will be paid:
8.75
A $18.5 8.75
B $18.5 8.75 5
C $18.5 ---------5
D $8.75 5
E $18.5 875
6 An electrical repairer is paid $12.70 per hour for a standard 35 hour week,
plus time-and-a-half for the first three hours on Saturday and double time
for any hours after that. How much will he receive if he works a standard
week, and then 4 hours overtime on Saturday?
7 A salesperson is paid $130 retainer per week plus 2.5% of sales. If $20 000
worth of goods are sold during one week, the income will be:
A $2.5 20 000
B $130 + 2.5 20 000
C $130 + 0.25 20 000
D $130 + 0.025 20 000
E $0.025 20 000
8 Abigail is paid a retainer of $120 per week plus 15% of the value of sales.
Calculate the income she earns in a week in which goods to the following
value were sold:
(a) $4340
(b) $2901
(c) $1409
(d) $450
9 If commission of $58 is earned on sales of $1700 then the percentage
paid is:
100
58
58
58
A 0.58 1642 B 58 ------------ C ------------ D --------- 1700 E ------------ 100
1642
1700
100
1700
10 Calculate the percentage commission paid in the following cases.
(a) SP = $540, C = $45
(b) SP = $8700, C = $580
(c) SP = $2500, C = $550
11 A car salesperson is paid a retainer of $180 per week plus a commission of
1.3% on sales. In a week in which she sells a Commodore for $28 000 and
a Barina for $13 000, how much will she be paid?
12 A real estate agent is paid
commission on the sale of houses
at the following rate:
2% on the first $150 000
1.5% on the next $100 000
1% on the rest
How much would the seller have
to pay in commission if a house
was sold for:
(a) $85 000
(b) $130 000
(c) $180 000
(d) $240 000
(e) $295 000
(f) $400 000?
28
Worked Example 18
Worked Example 19
e
e
e
e
e
Worked Example 19
Hint
Worked Example 20
Hint
Worked Example 20
Applications
13 A team of factory workers is paid

$4.40 per tyre produced. In a full
shift a team of five produces 102
tyres. How much would each
person earn that day?
14 In a small T-shirt printing factory the following time sheets summarise the
hours worked by four employees. Calculate their total income for the week
if the standard rate is $11.40 per hour.
Standard hours
Time-and-a-half
Double time
Adam
35
Britta
25
Con
30
Deng
20
Hint
Hint
15 Given that there are 52.18 weeks in a year, 26.09 fortnights in a year and
12 months in a year, complete the following table to show earnings for
each period of time. Write answers to the nearest cent. (Hint: Remember,
there are not exactly 4 weeks in a month so to convert from weekly to
monthly you need to multiply by 52.18 then divide by 12.)
Weekly
(a)
(b)
(c)
(d)
(e)
(f)
Fortnightly
Monthly
Yearly
$450
$670
$32 500
$1450
$3620
$680
16 Erica sells cars and receives a weekly retainer of $150 plus 0.75% of the
value of the cars she sells. In a particular week Erica earns $1275. What
value of cars did Erica sell that week?
17 Patrice is paid $28 per hour for the first 35 hours worked in a week. She is
then paid time-and-a-half for the next 6 hours worked and double time
TECHNIQUES
29
for anything beyond that. How many hours did Patrice work in a week in
which she earned:
(a) $1190
(b) $1400
(c) $1736?
(d) How many hours overtime would need to be worked so that the overtime
payment was at least as much as the standard hours payment?
Analysis
18 Another difference between wages and salary is that some types of

payments are additional to wage earnings, but are already incorporated
into a salary.
(a) Hilda gets paid a wage that amounts to $450 weekly. Her leave
loading, added onto her pay for holidays, is 17.5% of this amount.
(i) Calculate her leave loading per week.
(ii) What pay will she receive during a 2-week holiday period?
This includes her normal income plus leave loading.
(b) Barrys income amounts to $1250 fortnightly. If he receives leave loading
of 17.5%, what pay will he receive for a 4-week holiday period?
19 When employed as a salesman Bruce was given a choice as to how he
would be paid.
Option A: A retainer of $250 per week plus 2.5% of his sales.
Option B: No retainer but 3.5% of his sales.
(a) Bruce needs at least $1250 per week. What value of sales does he
need to make under each payment option to meet this requirement?
Give answer correct to the nearest dollar, if necessary.
(b) What value of sales will give Bruce the same pay regardless of the
option chosen?
(c) So, when would it be better for Bruce to choose Option A?
Careless Carly
Carly is given a savings account by her parents with some money already deposited into it.
Carly is trying to avoid withdrawing money from the account but is not very good at sticking
to her plans. Soon she realises she has already withdrawn as much money as there is remaining
in the account. The next week Carly withdraws another $m and realises the ratio of withdrawn
money to money remaining is now 3 : 2.
What is the ratio of withdrawn money to money remaining when Carly withdraws another $m?
Equations can be useful here, or maybe trial and error.
30
Is your pay correct?
Students often seek part-time employment. For many, this ends up being in the retail sector.
When you start work it can be a very exciting time but it is also important to make sure that
your conditions of employment are suitable and that you are being paid a fair wage.
In Australia the idea of a fair wage goes back to 1907 when Justice Higgins set what
became known as the minimum weekly wage which he based on the normal needs of the
average employee, regarded as a human being living in a civilised society. He set the
minimum weekly wage at 2 pounds 2 shillings, which is the same as $4.20! By September
2002 this wage had risen to $431 per week. It is important that low-paid workers are
protected by having a minimum wage when you realise that the poorest 20% of Australians
are paid 3.8% of the combined gross weekly income in Australia, while the richest 20%
collect 48% of it.
Many industries and work places pay more than the minimum weekly wage. Conditions
of employment and pay rates are set out in Awards (in Victoria these are set by the Australian
Industrial Relations Commission) or in individual contracts or Australian Workplace
TECHNIQUES
31
Agreements. All of these are complex documents and should cover things such as:
pay rates, spread of working hours, whether or not overtime is paid
amount of sick leave, annual leave and other types of leave that will be paid
whether or not penalty rates will be paid for working on weekends or public holidays, etc.
However, many students will be employed as casual workers. The rate of pay that a casual
receives is higher per hour than a full-time or part-time employee receives because they do
not get any paid leave. A casual workers rate of pay is made up of several components:
the minimum legal rate for that industry
a loading to compensate for the lack of any paid leave
an allowance for uniform and the like.
To further complicate the situation for students, the award payments are for adults;
workers less than 21 years of age can be paid only a percentage of the full adult rate. In the
Retail Industry at 16 years of age a worker is entitled to 50% of the adult rate while a 20-yearold is worth 90% of the adult rate. In September 2002 the adult hourly rate was $15.59 for a
Retail Employee Grade 1 compared to $16.74 for a Retail Employee Grade 2. There are some
additional payments that can be made if you work outside your normal hours:
time-and-a-half for additional hours Monday to Saturday
double time for Sundays, and double-time-and-a-half for work on Public Holidays.
In other industries different pay scales are in place. As an example, Kitchen Hands in
restaurants are paid between $13.22 and $14.66 per hour, depending on experience. In this
industry the Junior rates and ages are:
17 years and under 60%
18 years of age 70%
19 years of age 85%
with employees 20 years of age and older getting the full adult rate.
Questions
1 Steven has just started work as a retail assistant. He works 2 hours on Wednesday, 2
hours on Thursday, 4 hours on Friday, and 8 hours on Saturday. How much should he
be paid for this work if he is 16 years of age and is a Retail Employee Grade 1. (None of
the hours worked are outside his normal work hours.)
2 Doreen, a 20-year-old, works exactly the same hours as Steven. How much does she
receive?
3 Steven has the following work roster for the Christmas/New Year period.
Date
24 Dec
26 Dec
27 Dec
28 Dec
29 Dec
30 Dec
31 Dec
1 Jan
Hours
9 am
5 pm
9 am
3 pm
6 pm
11 pm
6 pm
11 pm
3 pm
7 pm
10 am
7 pm
10 am
7 pm
11 am
8 pm
For Steven, normal hours are considered to be 8 am to 8 pm. 26 December and January
1 are both considered public holidays in this industry. After 5 continuous hours of
work an unpaid meal break of 30 minutes must be taken.
Find Stevens pay for this time period. To help check your answer work out, and record,
his pay for each of the days separately.
Research
Construct a poster that could be used to advise student workers of what they can expect in
the world of work. This might concentrate on one particular place of employment or it could
be a more general offering.
32
Earning a living
Investigating and designing
Rosetta is the manager of a clothing

factory and is paid an annual salary of
$42 250.
1 If Rosetta is paid every two weeks,
how much is her fortnightly net pay?
Mario is paid $16 per hour for the first 35
hours, time-and-a-half for the next five
hours and double time for any more. In a
four-week period he works 30, 42, 46
and 37 hours a week, respectively.
2 Mario is paid weekly. Calculate each
of his four weekly wages and his total
wage for this period.
Name
The table on the right shows the
Anna
number of products completed by
Belinda
each of the machinists over a fourCaitlin
week period.
Desdemona
Anna, Belinda, Caitlin,
Efe
Desdemona and Effie are paid $2.50 Francesca
for each product they complete. The Georgie
Hortense
other five machinists produce a
different product and are paid $1.70 Irena
Jasmine
each piece.
Week 1
Week 2
Week 3
Week 4
120
115
100
95
112
210
200
205
191
189
135
140
130
94
108
200
210
205
185
177
140
142
111
100
115
195
199
201
190
182
110
125
0
92
100
185
205
210
189
185
3 Calculate the total wages for the

four-week period for each of the machinists.
Producing
At the end of the year with new employment contracts, Rosetta gained a 5 --14- % increase, Mario a
4 1--2- % increase and the machinists each receive a 6% increase.
4 Find Rosettas new salary, the new hourly rate for Mario and the new piece rates.
5 Calculate the values for 1, 2 and 3 using the new figures.
Analysing and evaluating
6 If the minimum wage is $431 per week, then who in the first week would receive it, using
the new rates?
7 How many pieces does Anna need to produce to receive the minimum wage? If each piece
takes her 15 minutes to produce, how many hours would she need to work in a week to earn
this?
TECHNIQUES
33
Before tax a persons wage or salary is referred to as gross income. The amount
remaining after tax, superannuation and other amounts such as union fees
have been taken out is referred to as net income.
The government requires a proportion of employee earnings to be
withheld as income tax. Under the PAYG (Pay As You Go) system in Australia,
employers withhold tax on a regular basis and forward it to the government.
The table below shows how income tax can be calculated.
Taxable income
$1$6000
$6001$21 600
$21 601$70 000
$70 001$125 000
$125 001 and above
Tax on this income
Nil
15 cents for each $1 over $6000
$2340 + 30 cents for each $1 over $21 600
$16 860 + 42 cents for each $1 over $70 000
$39 960 + 47 cents for each $1 over $125 000
Another amount which employees can choose to have withheld is

superannuation. This is an amount that goes into a fund that you can access
at retirement or earlier in extreme situations.
In general:
Net income = Gross income (Tax + Superannuation)
worked example 21
Calculate the net income if gross income is $1250, tax is $278.20 and superannuation is
$42.50.
Step
Subtract tax and superannuation from gross
income.
Solution
Net income
= $1250 $278.20 $42.50
= $929.30
worked example 22
Kates gross pay each fortnight is $980. She is taxed 19% of this and also pays 3% of it
towards her superannuation fund. What is her net fortnightly income?
Steps
1. Calculate the amount of tax withheld.
34
Solution
19% of $980
= 0.19 $980 = $186.20
2. Calculate the amount of superannuation.

3. Subtract these amounts from gross
fortnightly income to find net fortnightly
income.
3% of $980
= 0.03 $980 = $29.40
Net fortnightly income
= $980 $186.20 $29.40
= $764.40
At the end of the financial year most people complete a tax return. This is
used to assess whether the total amount of tax paid over the year is correct,
considering all factors, such as total income, work-related expenses and other
types of deductions. Depending on the tax return an individual may receive a
tax refund or may have to pay more tax.
Taxable income is the amount of your income that the government believes
you should pay tax on. If you have made work-related payments or given
money to charities, you do not have to pay tax on these amounts. So before the
total amount of tax you pay is calculated some tax deductions are made.
Taxable income = Gross income Tax deductions
worked example 23
Carries annual gross salary is $55 000. During the year she had work-related expenses
totalling $1200, paid union fees of $255 and donated $650 to recognised charities.
(a) Calculate Carries taxable income.
(b) Calculate how much income tax Carrie should have paid using the table on page 34.
Steps
(a) Subtract allowable deductions from
gross income.
(b) 1. Locate the taxable income in the table and

write the statement about tax payable.
2. Calculate how much higher the income is
than the lower limit of the bracket.
3. Calculate tax payable by using the
statement from the table.
Solutions
(a) Taxable income
= $55 000 ($1200 + $255 + $650)
= $55 000 $2105
= $52 895
(b) Tax payable is $2340 + 30 cents
for each $1 over $21 600.
$52 895 $21 600
= $31 295
Tax payable
= $2340 + 0.30 $31 295
= $11 728.50
TECHNIQUES
35
exercise 1.6
Income tax
Skills
1 Calculate the net income when:

(a) gross income = $875, tax = $149.40, superannuation = $42.30
(b) gross income = $4670, tax = $1159.75, superannuation = $206.10,
other deductions = $180.70
2 Jareds gross weekly pay is $695.78. If 5% of this goes into his
superannuation fund and 22% is withheld as PAYG tax, what is Jareds
net weekly pay?
3 Use the income tax table on page 34 to find how much income tax should
be paid on the following taxable incomes.
(a) $5200
(b) $7500
(c) $12 500
(d) $20 000
(e) $52 000
(f) $59 999
(g) $65 000
(h) $84 900
4 The tax payable on $32 980 is closest to:
A $7380
B $5754
C $3414
D $9894
E $13 852
5 The tax payable on $56 740 is closest to:
A $11 380
B $16 941
C $23 717
D $10 542
E $12 882
6 Rosanna receives an annual gross income of $45 700.
(a) What is her taxable income if she donates $360 a year to Amnesty
International and has work expenses totalling $575?
(b) Calculate how much income tax Rosanna should pay annually using
the table on page 34.
77 Jane earns an annual gross salary of $46 000 and makes regular
contributions to recognised charities that total at least $450 per year.
(a) Write three possible taxable income amounts for Jane.
(b) Calculate the tax payable on one of these amounts.
e
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Worked Example 21
Interactive
Worked Example 22
Worked Example 22
Hint
Worked Example 22
Worked Example 22
e
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Worked Example 23
Hint
Applications
8 Karls fortnightly gross income is $1256. Karl has annual union fees, which
he has paid up-front, of $125. He sponsors a child through the Christina
Noble foundation for $420 per year and has annual work-related expenses
of $320. There are 26.09 fortnights in a year.
(a) What is Karls annual gross income?
(b) What is Karls taxable income?
(c) How much per year should Karl pay in tax?
9 At the beginning of the financial year Justine started in a new position with
an annual gross salary of $54 500. There are 52.18 weeks in a year.
(a) How much should Justine pay per year in tax?
(b) How much is Justines weekly gross income?
(c) How much per week does Justine get withheld as PAYG tax?
Justine decides to leave her job after 34 weeks in the position, and travel
around Australia without working for the rest of the financial year. Before
leaving Justine had earnt $32 983 and paid $7389 in PAYG tax.
36
Hint
(d) Use the table to calculate how much tax Justine should pay on the
amount she earnt in the financial year.
(e) How much tax should Justine be refunded? Round your answer to
the nearest dollar.
Analysis
10 Brad and Jennifer are married. At the moment Brad has a taxable income
of $80 000 and Jennifer does not work.
(a) How much tax does Brad pay?
(b) What percentage (correct to the nearest whole number) of his
taxable income does this represent?
Brad and Jennifer decide they would be better off if they both worked
part-time. They are able to obtain positions that give each of them a
taxable income of $40 000.
(c) What is their combined tax contribution?
(d) What percentage, correct to the nearest whole number, of their
combined taxable income does this represent?
(e) How much better off are Brad and Jennifer under this scheme?
(f) Why is this different to Brads contribution when he was the sole
earner?
Hint
Any person or organisation borrowing money usually pays for the use of that
money in the form of interest. Whenever the interest is calculated on the
amount borrowed and not added on to the original sum, it is called simple
interest (I). The amount of interest due depends on the amount borrowed,
called the principal (P), the rate of interest (r) in per cent per year (per annum;
p.a.) and the time (T) in years. Thus the formula for calculating simple interest is:
PrT
I = --------100
This is more conveniently written as:
r
I = PRT
where R = --------- .
100
It is important to realise that the simple interest formula gives you the amount
of interest paid or due. To find the total amount of money paid or due you need
to add the principal to the simple interest.
worked example 24
Calculate the simple interest paid on a loan of $5000 at 16.4% p.a. interest over four years.
Steps
1. Write the formula.
2. Identify P, the amount borrowed.
Solution
I = PRT
P = $5000
TECHNIQUES
37
3. Identify the rate R.

4. Identify the time T in years.
5. Substitute into the formula and calculate
the simple interest.
R = 16.4% = 0.164
T=4
I = $5000 0.164 4
= $3280
The time period will not always be a whole number of years. In cases like this you simply
express the time period in fraction form and substitute as normal.
worked example 25
Barbara borrows $2400 to set up a business. She repays the debt after 5 years and
3 months, after paying 18.5% p.a. in simple interest payable quarterly.
(a) How much did she pay quarterly?
(b) What was the total amount of money paid?
Steps
(a) 1. Write the formula.
2. Identify P, the amount borrowed.
4. Identify the time T in years for each
interest payment.
5. Substitute into the formula and calculate
the simple interest.
(b) 1.
2.
3.
4.
Write the formula.

Identify P, the amount borrowed.
Identify the rate R.
Identify the time T in years and change
to an improper fraction.
5. Substitute into the formula.
Solutions
(a) I = PRT
P = $2400
R = 18.5% = 0.185
1
3
T = ----- = -12 4
1
I = $2400 0.185 -4
= $111 per quarter
(b) I = PRT
P = $2400
R = 18.5% = 0.185
21
3
1
T = 5 ---- = 5 -- = ----12
4
4
21
I = $2400 0.185 ----4
= $2331
Total = $2331 + $2400
= $4731
6. Add to amount borrowed.
Most banks use simple interest to calculate the amount of interest payable on accounts. There are two
major methods used: interest calculated daily, or interest calculated monthly based on the minimum
monthly balance in the account.
38
One of the difficulties associated with these calculations is working out the
number of days each balance applies. The change takes place on the day the
withdrawal or deposit is made. For example, in Worked Example 26 below, the
balance of $490.15 applies to 1, 2, 3, 4 and 5 September (i.e. 5 days).
Note: Make sure the number of days you use in your calculations is the total
number of days in that month.
worked example 26
Craigs passbook for September looks
like this:
If the account pays 6% interest,
calculate the interest accrued in
September if interest is calculated:
(a) daily to six decimal places
(b) on minimum monthly balance.
Steps
(a) 1. Write the formula.
Balance
Sep
1
6
19
Balance
Deposit
Withdrawal
$180
$400
$490.15
$670.15
$270.15
Solutions
(a) I = PRT
2. Identify P, the balances.

4. Identify the time T in years for each
balance.
P = $490.15, $670.15, $270.15

R = 6% = 0.06
5. Substitute into the formula the

respective values of P, R and T and
calculate correct to six decimal
places.
5
I = $490.15 0.06 -------365
= $0.402 863
13
I = $670.15 0.06 -------365
= $1.432 101
12
I = $270.15 0.06 -------365
= $0.532 899
I = $0.402 863 + $1.432 101 + $0.532 899
= $2.367 863
= $2.37
6. Calculate total interest by adding the

individual amounts.
7. Round off to two decimal places
(i.e. the nearest cent).
(b) 1. Write the formula.
2. Identify the balances.
3. Identify the smallest balance.
5
13 12
T = --------, --------, -------365 365 365
(b) I = PRT
$490.15, $670.15, $270.15
P = $270.15
R = 6% = 0.06
1
T = ----12
1
I = $270.15 0.06 ----12
7. Calculate to two decimal places.
= $1.35
TECHNIQUES
39
It is much easier to calculate the interest based on minimum monthly balance

than on daily balance, although with computers this is now less of a problem.
Daily calculation of interest results in more interest than monthly calculations.
For simple interest calculations:
I = PRT
where
I = Simple Interest (in dollars)
P = Principal (in dollars)
R = Rate per annum (as a decimal)
T = Time (in years)
It is possible to rearrange the variables in the simple interest formula and

from this calculate R, T or P if the values of the other three variables are known.
worked example 27
Allan, on his retirement, put $12 500 into a cash management account. He received
$13 740.15 when he withdrew all of the money 9 months later. What was the average rate of
return p.a. on his capital (correct to one decimal place)?
Steps
2. Calculate the interest earned.
Solution
I = PRT
I = $13 740.15 $12 500
= $1240.15
P = 12 500
R=?
3. Identify P, the amount invested.

4. Identify that R is not known.
9
3
T = ----- = -12 4
3
1240.15 = 12 500 R -4
7. Transpose to find R.
8. Convert to a percentage correct to

one decimal place.
1240.15 4
R = -------------------------12 500 3
= 0.132 28
= 13.2%
e
exercise 1.7
eTutorial
Simple interest
Skills
1 Calculate the simple interest payable on a loan of $450 at a rate of

22% p.a. for 3 years.
40
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Worked Example 24
Hint
2 Calculate the simple interest in the following cases:

(a) P = $440, R = 0.08, T = 5 years
(b) P = $60, R = 0.09, T = 7 years
(c) P = $369, R = 0.12, T = 3 years
(d) P = $60, R = 8.5%, T = 2 years
(e) P = $3800, R = 16.8%, T = 3.5 years
(f) P = $1500, R = 12.1%, T = 2.5 years
3 The simple interest on $870 for 4 years at 15% p.a. is:
A $870 15 4
B $870 0.15 4
C $870 1.15 4
D $870 0.15 4 + $870
E $870 0.15
4 What is the total amount which is paid on a loan of $8150 over 3 years and
6 months at 18.5% p.a.?
5 The total amount to be repaid on a loan of $520 over 2 months at
12.4% p.a. is:
2
A $520 0.124 2 + $520
B $520 0.124 ------ + $520
12
2
2
2
C $520 12.4 ------ + $520
D $520 0.124 ------ E $520 12.4 -----12
12
12
8 A statement for an account offering 7.8% p.a. is

shown for the month of December.
How much interest is payable for December if
interest is calculated:
(a) daily
(b) on the minimum monthly balance?
Hint
Worked Example 24
e
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6 Calculate the simple interest accrued on a sum of $900 at

5.5% p.a. for:
(a) 29 days
(b) 56 days
(c) 8 days
(d) 19 days
7 A statement for an account offering 6.9% p.a. is shown
for the month of July.
How much interest is payable for July if interest is
calculated:
(a) daily
(b) on the minimum monthly balance?
e
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Worked Example 24
Worksheet C1.9
Worked Example 25
Hint
Worked Example 25
Hint
Worked Example 25
Hint
Worked Example 26
Hint
July
Transaction
Balance
1
5
22
Balance
Withdrawal 170
Deposit 450
350
180
630
Worked Example 26
December
Transaction
Balance
1
16
22
27
Balance
Deposit 530
Withdrawal 260
Withdrawal 300
65.20
595.20
335.20
35.20
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9 After investing $5000 into a

fixed deposit for 2 years for
a trip to London, Inika
received $5890. What
percentage return p.a. did
she get?
Worked Example 27
Hint
TECHNIQUES
41
10 Werner put $8000 into a cash management account. He received

$10 740.15 when he withdrew all of the money 18 months later. What was
the average rate (correct to one decimal place) of return p.a. on his capital?
Worked Example 27
11 Claudia, to save for a trip to the Gold Coast, puts her tax return cheque of
$890 into an account paying 8% p.a. How long (in years, correct to
one decimal place) will her money take to accumulate to $1300?
Hint
12 If R = 0.09, P = $400, I = $43.80, then T (in years) =

43.80
43.80
A -----------------B ------------------------400 9
400 0.09
Hint
43.80 400
D ---------------------------0.09
400 -------------------------43.8 0.09
13 If r = 5, T = 3, I = $19, then P (in dollars) =

19
19
A -----------B ------------------53
0.05 3
19 3
D --------------0.05
43.80 0.09
C -----------------------------400
19
C --------------------------0.25 0.05
E 19 0.05 3
14 Calculate R, then write as a percentage (p.a.) correct to one decimal place

when:
(a) P = $245, T = 5 years, I = $110 (b) P = $420, T = 2.25 years, I = $132 e
(c) P = $24, T = 5 months, I = $1.15 (d) P = $6542, T = 35 weeks, I = $439.60
Hint
15 Calculate T (in years) correct to one decimal place when:

(a) P = $245, R = 0.06, I = $116
(b) P = $120, R = 0.07, I = $32
(c) P = $20, R = 6.6% p.a., I = $7.05 (d) P = $5547, R = 7.7% p.a., I = $931.40
16 Calculate P (in dollars) when:
(a) T = 3.5 years, R = 0.05, I = $35
(b) T = 2 years, R = 0.08, I = $216 e Hint
(c) T = 4 weeks, R = 7.6% p.a., I = $12.45
(d) T = 5 months, R = 4.7% p.a., I = $837.40
Applications
17 How much will be paid out to Sol, who puts $1400 into a bank account
paying 6% simple interest p.a. calculated daily, if he withdraws the total
amount after 240 days?
42
Hint
Hint
Hint
23 What amount of money must be invested at 9% p.a. in order to earn $540

in interest in 3 months?
Hint
24 Kurt receives a cheque for $38 500 which was the proceeds of an
investment (interest plus capital) made 6 months ago at 8.5% p.a.
How much did he invest?
Hint
18 Victor agrees to lend Esme $1500 so that she can go on a holiday to Fiji.
He is to be paid simple interest at the rate of 12% p.a. payable quarterly,
with the debt to be repaid in full in 5 years. Calculate:
(a) the interest paid quarterly
(b) the total amount repaid
19 Manny borrows $6100 from his mother to buy a car. He agrees to pay 11%
simple interest each year. After 2 years, in addition to the interest he pays
an extra $2500 off his capital. How much did he pay his mother if he pays
off the loan in another 1.5 years?
20 Calculate the total interest payable on an account in the month of June
which has a balance of $750 for 10 days, a balance of $1050 for 12 days and
a balance of $500 for the rest of the month if the account pays 6.6% p.a.
calculated:
(a) daily
(b) on minimum monthly balance
21 (a) Calculate the interest payable on an account in the month of April if
it pays 5.8% interest p.a., and it has a balance of $155 for 3 days, $820
for 19 days, and $580 for the rest of the month, if the interest is
paid on:
(i) minimum monthly balance (ii) daily balance
(b) How much more is the interest in part (ii) than in part (i)?
22 After investing $6000 into a savings account paying 7% interest p.a., Ian
received $6238. For how many days (correct to the nearest day) was the
money invested?
TECHNIQUES
43
25 Tula repays her father

$4890 to cover a debt for a
motorbike which she
incurred 15 months ago,
agreeing to pay 4% p.a.
How much did she
borrow?
26 Hung earns $640 on an
26
investment of $8000. Give
three possible simple
interest rates as
percentages per annum,
and their corresponding
time periods, that give
interest of $640 on an
investment of $8000.
Analysis
27 Consider the statement shown at right for a

savings account.
Jul
1 Balance
(a) Copy and complete the statement for
17 Deposit
the four month period shown.
28 Withdrawal
(b) State the minimum balance for each
month.
Aug 1 Deposit
(c) Calculate the interest owed if the
19 Deposit
interest rate is 2.75% p.a. and it is paid
29 Withdrawal
on the minimum monthly balance.
Sep 6 Deposit
Late in each month there has been a
28 Withdrawal
withdrawal. Assume that these withdrawals
Oct
16 Deposit
were delayed until the first day of the next
21 Withdrawal
month.
31 Balance
(d) What are the minimum monthly
balances now?
(e) How much interest is now earned?
(f) What percentage change has there been in the amount earned?
(g) Now think about a large business with an annual turnover of about
$1 million. What advice would you offer them in light of what has
just been completed?
28 Phillip borrows $15 000 from his mother as part payment on his new car.
He needs to pay back the money within 3 years and pay 5% simple interest
for the period of the loan. He intends to make monthly repayments to his
mother.
(a) How much interest will Phillip need to pay?
(b) So, how much in total does Phillip owe his mother?
(c) How much is each monthly repayment?
44
Balance
$975.00
$197
$641
$299
$862
$176
$194
$800
$426
$400
1
1
(d) Assuming --- of the interest is repaid each year and --- of the principal
3
3
is repaid each year what percentage of each payment is interest?
(e) How much interest does Phillip still need to repay after the first 12
months?
(f) If the interest calculation was done again based on the principal still
owing how much interest would be owing?
(g) Why is there a difference in the answers to parts (e) and (f)?
e
e
eQuestions
Worksheet C1.10
Using iteration to investigate

savings plans
In mathematics, iteration occurs when the output from a mathematical rule becomes the
input to the rule the next time the rule is processed.
Consider the rule of doubling a number
First
and taking away ten.
input
If the first input is 20 then the rule becomes
2 20 10 and the output is 30. The output
now becomes the next input. That is, we apply
Mathematical rule
the rule to 30.
Output
Input
For example:
The second output is 50, i.e. 2 30 10 =
2 Input 10
50. Each time we go through the process we
say an iteration has been performed. The first
iteration gave a result of 30 and the second
iteration gave a result of 50. The diagram on the right shows how iteration works.
TI-Nspire CAS
ClassPad
0 to store the value in the

Ans variable. Then press r 2 1 0 to get 30 and then each time
you press you get the next answer.
2 0 E to store the value

in the ans variable. Then press * 2
- 1 0 E to get 30 and then
each time you press E you get the next
Press 2
Press
answer.
We say that 30 is the result of the first iteration, 50 the second, and so on. Find the value of
the fourth, fifth and tenth iteration.
TECHNIQUES
45
Suppose you are able to save $1200 each year towards a major holiday in ten years time.
You have to choose the best plan from the options below:
Payment*
Interest rate
Plan A: Regular Saver
$100 per month
9% p.a. paid monthly
Plan B: Periodical Saver
$600 per six months
10% p.a. paid six-monthly
Plan C: Yearly Lump Sum
$1200 per year
9% p.a. paid yearly
* All payments commence at the beginning of the period.
Investigating Plan A: Regular Saver
Calculate the monthly rate of interest. Dividing 9% p.a. by 12 gives a rate of 0.75% per month
or 0.0075 per month as a decimal rate.
The amount saved at the beginning of the second month is calculated as follows:
The initial deposit = $100
Interest on deposit = 0.0075 $100 = $0.75
The second deposit = $100
Total = $(100 + 0.75 + 100)
= $200.75
The amount saved at the beginning of the third month is calculated as follows:
Previous balance = $200.75
Interest on balance = 0.0075 $200.75 = $1.51
The third deposit = $100
Total = $(200.75 + 1.51 + 100)
= $302.26
To perform these calculations on your CAS enter the
expression as shown in the screen display.
Press or E and you should get the answer
200.75 as the amount saved at the beginning of the
second month.
1 Explain what each part of the expression Ans+(0.09/12)*Ans+100 does.
2 Press or E again. The calculator computes the value of
Ans+(0.09/12)*Ans+100 but uses the value 200.75 for Ans. The value displayed is the
amount saved at the beginning of the third month. Does it agree with the value obtained
earlier?
3 Copy the table below into your workbook. By pressing the or E key, complete the
table for Plan A.
Beginning of month
Amount saved ($)
100
200.75
302.26
13
25
4 Extend the table to find the amount saved at the beginning of each year for years
4 to 11 inclusive of the savings plan. Hint: The end of the tenth year occurs at the
beginning of the eleventh year. This happens at the beginning of the 121st month.
46
37
5 How much is saved at the end of ten years if the payment of $100 (at the beginning of
year 11) is not included?
Investigating Plan B: Periodical Saver
To calculate the six-monthly rate of interest, divide 10% p.a. by 2. This gives a rate of 5% per
six months or 0.05 per month as a decimal rate.
At the beginning of the second six-month period the amount saved is calculated as:
The initial deposit = $600
Interest on deposit = 0.05 $600 = $30
The second deposit = $600
Total = $(600 + 30 + 600)
= $1230
In your workbook, copy and complete the calculation below for the beginning of the third sixmonth period:
Previous balance = $____
Interest on balance = 0.0 ____ $1230 = $____.50
The third deposit = $600
Total = $(1230 + ____. 50 + 600)
= $____.50
Enter the expression as shown and press
or E . The answer, 1230.00 is the amount

saved at the beginning of the second six-month
period.
1 Explain what each part of the expression Ans+(0.1/2)*Ans+600 does.
2 Press or E again. The value displayed is the amount saved at the beginning of the
third six-month period. Does it agree with the value obtained earlier?
3 Copy and complete the table for Plan B.
Beginning of six-month period
Amount saved ($)
600
1230.00
1891.50
13
19
4 Continue the table to find the amount saved at the beginning of each year for years 2 to
11 inclusive of the savings plan.
5 How much is saved at the end of ten years if the payment of $600 (at the beginning of
year 11) is not included?
Investigating Plan C: Yearly Lump Sum
Use the iteration methods shown to find the amount saved at the beginning of each year from
years 1 to 10 and at the end of the tenth year. Assume that the end of the tenth year is the
same as the beginning of the eleventh year but does not include the eleventh year payment.
Comparing the plans
Write a brief report that compares the plans and the amount saved in each plan after ten years.
Which plan would you recommend? How practical are the plans?
TECHNIQUES
47
Answer the questions, showing your working, then arrange the letters in the order shown
by the corresponding answers to find the cartoon caption.
Use the table on page 34 to find the tax payable on the following taxable incomes.
$27 500
O
$52 495
A
$18 900
U
$65 000
N
Find the simple interest earnt with the following term deposits.
principal = $4000, rate of interest = 5%, time = 3 years
A
principal = $55 000, rate of interest = 7.1%, time = 8 years
C
principal = $8900, rate of interest = 6.5%, time = 10.5 years
T
principal = $14 500, rate of interest = 8.2%, time = 15 years
C
Find the initial amount invested in each of the following term deposit accounts.
simple interest = $3660, rate of interest = 6%, time = 5 years
N
simple interest = $590, rate of interest = 4.3%, time = 30 months
T
simple interest = $13 032, rate of interest = 8%, time = 9 years
N
simple interest = $2090, rate of interest = 7.6%, time = 12.5 years
A
$11 608.5 $18 100
$2200
48
$15 360
$5488
$600
$31 240 $17 835
$4110
$1935
$12 200
$6074
There are a number of payment options open to people when purchasing

goods. Apart from cash transactions customers can use EFTPOS (electronic
funds transfer at point of sale) and debit cards. These are similar to paying
with cash in that they dont have any interest fees and require the finance to be
available at the time of purchase. Bank fees are often charged for these kinds of
transactions. Cheques have been used as a replacement for cash for a long
time but are decreasing in popularity for a number of reasons, such as fees
charged by banks for cheque facilities. Businesses are wary of cheques because
there is no way of knowing if the customer actually has the money in the bank.
When you purchase an item with lay-by the store holds the item while you
make payments. You receive the item after it has been completely paid for.
No interest has to be paid for this form of payment.
Deferred payment is a term mostly used to describe one of the payment
options for HECS-HELP (Higher Education Contribution Scheme-Higher
Education Loan Programme). It is a loan for which repayments commence
when the borrower earns above an amount set by the government.
Repayments are calculated as a percentage of the borrowers income.
worked example 28
Joanna uses EFTPOS for most of her purchases. Her bank charges 50 cents per EFTPOS
transaction as well as a $2 account-keeping fee per month. If Joanna makes 12 EFTPOS
purchases in one month, what amount will her bank charge her?
Steps
1. Calculate fees, including account-keeping
fee.
2. Write answer.
Solution
12 $0.50 + $2
= $6 + $2
= $8
Joannas bank will charge her $8.
worked example 29
Christie wanted to buy a particular pair of jeans for $130 but didnt have enough money
so she decided to lay-by them. The store requires an initial amount of 20% of the cost of
the jeans.
(a) How much did Christie pay to begin the lay-by?
(b) If Christie pays off $20 per week, how long will it be until she owns the jeans?
TECHNIQUES
49
Steps
(a) 1. Write the required percentage of the cost
of the item.
2. Calculate and write the answer.
(b) 1. Find the remainder after the deposit has
been paid.
2. Find how many times the regular payment
goes into this amount. Any remainder will
take an extra week to pay off.
3. Write the answer.
exercise 1.8
Solution
(a) 20% of $130
= 0.2 $130
= $26
Christie paid $26 to begin the lay-by.
(b) $130 $26
= $104
$104 $20 = 5.2
Christie will take 6 weeks to pay off

her lay-by.
Interest-free payment
methods
Skills
1 A bank charges a monthly account-keeping fee of $4 for its Easy Saver

account. EFTPOS transactions are charged at $0.75 per transaction.
Calculate the monthly fee charged if each of the following number of
EFTPOS transactions were made.
(a) 0
(b) 2
(c) 8
(d) 15
2 The following items were
purchased using lay-by. If the
store required 20% of the
cost of the item as an initial
payment, find (i) how much
the initial payment was and
(ii) how many weeks it took
to pay off each item.
(a) a $90 jumper with weekly
payments of $15
(b) a $45 shirt with weekly
payments of $10
(c) a $300 tent with weekly
payments of $40
(d) a $170 desk with weekly
payments of $30
50
e
e
e
Worked Example 28
Hint
Worked Example 29
Hint
Applications
3 Suzanne and Dzung are trying to decide which method they should use to
pay their rent of $950 each month. They can withdraw cash from their
account using an ATM then go into a bank to deposit it into their
landlords account. Alternatively, they can post a cheque directly to their
landlords workplace.
(a) The ATM will only allow withdrawals of up to $400 each time, at a
cost of $1 per withdrawal. How much will it cost to withdraw the
$950 from the ATM?
(b) Suzannes bank charges $6 per cheque. How much will she have to
spend on cheques for rent in one year?
4 Jong-Mun has a HECS-HELP liability for this semester of $2563.
(a) If Jong-Mun pays up-front he only has to pay 80% of the total
liability and the government pays the rest. How much will JongMun have to pay if he chooses this option?
(b) Jong-Mun decides he may be able to pay $1000 of the liability. As an
encouragement to people to do this the government subtracts 5--4- of
the actual amount paid from the liability.
(i) How much will Jong-Muns liability be reduced by if he pays
$1000 up-front?
(ii) What will Jong-Muns deferred amount be?
Hint
Hint
Hint
Analysis
55 If you made a deposit on a lay-by equal to the monthly repayment give

three different amounts that the cost price of the goods might be. Also give
the size of each payment.
6 Gary decided to defer his total
HECS-HELP amount. At the end
of his degree he owed the
government $14 392 in HECSHELP fees. In his third year out of
university Gary is on an annual
salary of $42 000. This is also his
taxable income amount. The
government will deduct 4.5% of
this for HECS-HELP.
(a) (i) How much HECS-HELP
will be deducted from
Garys pay that year?
(ii) What has his HECSHELP debt been reduced to?
(b) Garys income increases the next year so that he is required to pay
5.5% of $48 500 in HECS-HELP. How much HECS-HELP will be
deducted from Garys pay that year?
(c) If Gary continues to pay off that amount in HECS-HELP each year,
how many more years will it take for Gary to have no HECS-HELP
debt remaining? Round your answer up to the next half-year.
TECHNIQUES
51
Credit cards have significantly reduced the use of

cheques. There are many different conditions under
which credit cards operate. Some have interest-free
periods of 25 or 30 days after the billing period ends.
You're a credit
Some have a significant annual fee while others have no
to me.
fee. Credit cards can be a very useful mode of payment,
but care needs to be taken not to exceed the interestfree period too much as the interest charged is at a
substantial rate, usually between 12% and 17%.
Buying on terms is sometimes called hire
purchase. This is where you take possession of the item
before it has been paid off. Many stores offer an interestfree period where you are required to pay a small
account administration fee on top of your payments for
the item, with no interest charged during that period.
However, if you dont manage to pay for the item before this period finishes
then the interest rates charged are very high, usually between 22% and 30%.
Often the interest is then charged to cover what was called the interest-free
period.
Banks offer personal loans for furniture, travel, caravans and a number of
other items. If it is unlikely that you will be able to pay off an item after buying
it on terms or with a credit card, then taking out a loan can be a better option
because the interest rates are lower, usually between 9% and 12%.
worked example 30
Taz has a credit card which has no interest-free period and charges an annual interest rate
of 13.85%. Find the amount of interest charged on a purchase of $146.25 if the full debt is
repaid 21 days later.
Steps
1. Write out the simple interest formula.
2. Identify P, R and T.
3. Substitute the values and calculate the

simple interest.
52
Solution
I = PRT
P = $146.25
R = 13.85% = 0.1385
21
T = -------365
21
I = 146.25 0.1385 -------365
= $1.16
worked example 31
Calculate the total interest payable at the due date for the following set of credit card
transactions. The card has no interest-free days and charges an annual rate of 13.95%.
Statement date: 5 October
This statement covers the period: 3 September to 5 October
Opening balance: $0.00

Transaction date
5 September
11 September
25 September
3 October
Due date: 30 October
Transaction amount ($)

37.35
45.80
112.15
14.50
Steps
2. Identify P, the balances, and the associated
time, T, converted to years.
(Remember: the $37.35 is owed for 5, 6, 7,
8, 9, 10 September.)
Solution
I = PRT
6
$37.35 for 6 days i.e. -------- years
365
14
$83.15 for 14 days i.e. -------- years
365
8
$195.30 for 8 days i.e. -------- years
365
28
$209.80 for 28 days i.e. -------- years
365
3. Identify the rate, and convert this to

decimal form.
4. Substitute the relevant information into the
formula to find the individual amounts of
interest. Write these correct to six decimal
places.
R = 13.95% = 0.1395
6
I = 37.35 0.1395 -------- = 0.085 649
365
14
I = 83.15 0.1395 -------- = 0.444 909
365
8
I = 195.30 0.1395 -------- = 0.597 136
365
28
I = 209.80 0.1395 -------- = 2.245 147
365
5. Calculate the total interest.

6. Write this correct to the nearest cent.
Total = 3.372 841

I = $3.37
As the name suggests, many people use credit cards as a line of credit. They do
not pay the total amount owing at the end of each month. The financial
institution that has issued the card will have a formula to work out what is
known as the minimum monthly payment. This consists of two parts, such as
$10 or 5% of the amount outstanding, whichever is the greater.
TECHNIQUES
53
worked example 32
Tylers financial institution requires her to pay each month a minimum of $20 or 5% of the
outstanding balance, whichever is the greater, off her credit card. Find the payment due if
Tylers amount outstanding is:
(a) $240
(b) $899
Steps
Solutions
(a) 1. Find the stated percentage of the amount owing.
2. Decide which is greater, $20 or the 5% calculation.

(b) 1. Find the stated percentage of the amount owing.
2. Decide which is greater, $20 or the 5% calculation.
5
(a) 5% of $240 = -------- 240
100
= $12
Tyler will pay $20.
5
(b) 5% of $899 = -------- 899
100
= $44.95
Tyler will pay $44.95.
worked example 33
Julio is interested in purchasing a new lounge suite. He has seen one advertised for $2799,
but feels he can only afford to part with $300 at the moment. The store offers Julio a twelvemonth interest-free plan where he must pay 10% of the cost up-front; he must also pay a
$20 application fee plus a $2.50 account-keeping fee per month.
(a) If Julio pays off the lounge suite within the twelve months how much has he paid in
total?
(b) If Julio cannot pay the lounge suite off within the twelve months he will be charged 29%
p.a. on the amount remaining for the 12 months he had interest free. After 12 months Julio
has not paid off $1000. What will this amount increase to?
Steps
(a) Add the application fee and the account-keeping
fees to the cost of the lounge suite.
(b) 1. You will be using the simple interest formula,

so define P, R and T.
2. Find the interest by substituting these values
into the formula.
3. Find the total amount owing by adding the
interest to the amount not yet paid off.
54
Solutions
(a) Total cost
= $2799 + $20 + $2.50 12
= $2799 + $20 + $30
= $2849
(b) I = PRT
P = $1000, R = 29% = 0.29
T = 12 months = 1 year
I = PRT
I = $1000 0.29 1
I = $290
Total amount owing
= $1000 + $290
= $1290
exercise 1.9
Payment methods with

interest
Skills
Worked Example 30
Hint
2 Ramona has a credit card with an annual interest rate of 14.25% and no
interest-free period. The amount of interest on a purchase of $450.50 fully
repaid in 17 days is closest to:
A $0.82
B $2.99
C $0.30
D $1.09
E $10.91
Worked Example 30
3 Calculate the total interest payable at the due date for the following sets of
credit card transactions. The card has no interest-free days and charges an
annual rate of 13.95%.
Worked Example 31
Hint
1 Find the amount of interest paid on each of the following credit card
transactions. The cards have no interest-free period.
(a) $450.65 repaid fully in 22 days,
interest rate 15.5% p.a.
(b) $560.90 repaid fully in 10 days,
interest rate 22% p.a.
(c) $123.40 repaid fully in 17 days,
interest rate 17% p.a.
(d) $235.00 repaid fully in 19 days,
interest rate 14.25% pa.
(e) $350.75 repaid fully in 28 days,
(f) $199.96 repaid fully in 20 days,
(a) Statement date: 3 September

(b) Statement date: 5 August

Transaction date
Amount ($)
12 August
200.65
25 August
123.99
1 September
58.98
Due date: 28 September
Transaction date
4 July
19 July
31 July
2 August
Due date: 30 August
Amount ($)
26.76
178.99
140.77
44.65
This statement covers the period:

5 August to 3 September

3 July to 5 August
4 Find the minimum payment due on each of the following monthly credit
card balances if the financial institution requires a minimum payment of
$25 or 7.5% of the amount outstanding, whichever is the greater.
(a) $250
(b) $192
(c) $950
(d) $835
(e) $400
(f) $1450
Worked Example 32
Hint
TECHNIQUES
55
5 Items worth the following amounts are purchased with 12 months interest
free. A 10% deposit is required, as well as a $25 application fee. An
account-keeping fee of $2.50 per month is another cost incurred.
Find (i) the deposit required and (ii) the total amount paid if each item is
paid off in 12 months.
(a) $1000
(b) $650
(c) $1200
(d) $2450
6 John wants to buy a television valued at $850. He doesnt have enough
money at the moment and is offered a 6 months interest-free deal where
no up-front payment is required. John has to pay a $25 application fee and
an account-keeping fee of $3 per month.
(a) If John pays for the television within 6 months how much has he
paid altogether?
(b) If John still owes $200 at the end of the 6 months how much will
this amount increase to if the interest rate is 26% p.a. charged for
the previous 6 months?
e
e
Worked Example 33
Worked Example 33
Hint
Applications
77 Eryns financial institution requires that she pay $30 or 8% of the balance
outstanding on her credit card, whichever is the greater.
(a) If her latest statement asks for a $30 payment, give three possible
values for the amount outstanding on Eryns credit card.
(b) For each of the amounts in part (a) calculate the interest charged if
Eryn pays the amount off in 17 days at 18% p.a.
8 Kevin wants to purchase household appliances worth
$1800, $2400 and $900. Each appliance is offered to Kevin
for 12 months interest free. He is charged a $25 application
fee for each appliance as well as account-keeping fees of
$2 per month for each of the three accounts.
(a) If all three appliances are paid off within 12 months
how much will Kevin have paid in total?
(b) Kevin doesnt think he can pay off all three
appliances in twelve months. If Kevin still owes
$2000 in total at the end of the 12 months, what will
this amount increase to if the interest rate is 28.6%
charged on the previous 12 months?
(c) Kevin decides that getting a small personal loan may be a better
option. If he borrows $5000 for 3 years and is charged 10.6% p.a.
simple interest, how much will he owe at the end of the 3 years,
assuming no repayments are made during this time?
Hint
Analysis
9 Credit Card A has no interest-free period and no annual fee. Its rate of
interest is 18.5% p.a. Credit Card B has up to 55 days interest free but has
an annual fee of $50. Its rate of interest is also 18.5% p.a.
(a) Under what circumstances would it be better to have Card A?
(b) Under what circumstances would it be better to have Card B?
56
e
e
Homework 1.3
Restarter 1
DIY summary
Copy and complete the following using the words and phrases
from the list where appropriate to write a summary for this chapter.
A word or phrase may be used more than once.
1 Simple interest is calculated by multiplying ______, ______ __
______, in decimal form, and the time period.
2 Before tax and other deductions are made a persons earnings
are referred to as ______ ______.
3 HECS-HELP (Higher Education Contribution Scheme-Higher
Education Loan Programme) can be paid up-front or by
choosing the ______ ______ option.
4 ______ is a payment based on a percentage of sales made.
5 Work-related expenses and donations to recognised charities
are both examples of ______ ______.
6 When a person works ______ they should be paid at a rate
higher than their normal rate of pay.
7 What does PAYG stand for?
8 Explain the difference between salary and wages.
9 What are some of the extra costs associated with buying on
terms?
10 Write down an advantage and a disadvantage of receiving
commission as a form of income.
11 When terms in index form with the same power are multiplied
together the rule to follow is
12 In the term 3a7 the 7 is known as a __________ or __________ .
13 (a) A retainer is
(b) A retainer is likely to be received by
14 The difference between buying on terms and lay-by is
15 The differences between gross income, net income and taxable
income are
16 The letters EFTPOS stand for
buying on terms
cheques
commission
credit cards
debit cards
deferred payment
earnings
EFTPOS
exponent
gross income
HECS-HELP
hire purchase
income
income tax
index
lay-by
loans
net income
overtime
PAYG
piece work
power
principal
rate of interest
retainer
salary
simple interest
superannuation
tax deductions
tax return
taxable income
wages
TECHNIQUES
57
VELS personal learning activity

1 Explain in words or with diagrams how a persons pay is calculated. Start with an hourly rate and
use the terms net pay and taxable income in your description. Include as much information as you
can from the chapter.
2 Think of a practical context in which each of following terms is used. Use an example in each
explanation.
decimal; percentage; rate of interest; hire purchase and index
3 Your friend wants to buy a $150 DVD player at a shop. Describe each of the ways that he or she
could pay for it, assuming that the shop provides for all methods of payment. For each one explain
exactly how the payment would be made.
4 Compare your results for the above three questions with a partner and discuss any differences that
you have. You may add to or change your answers after the discussion.
Skills

(a) 1 1--2- 3 2--3(b) 2 1--4- + 1 1--5-
1.1
(c)
1 1--3- ( 2 1--5- )
(d)
2 1--5
3 1--3-
2 Calculate the selling price on the following items. Give answers correct to
the nearest cent where necessary.
(a) A $75 shirt discounted by 30%.
(b) A $29.99 CD discounted by 12 1--2- %.
(c) A $250 000 house discounted by 5%.
3 A timber dining room table cost $800 to construct and was sold for $1250.
The percentage profit, based on cost price, is closest to:
A 36%
B 64%
C 43.75%
D 50%
E 56.25%
(a) 4x6 3x9
15x 6
(b) ---------3x 2
14a 2 b 3 3a 2 b
(d) ---------------------------------21ab 2
(c) 5ab7 3a4b2 3a2b2

5x 3 7x 2
(d) --------------------25x 5
6 A casual worker earns $8.45 per hour working in a supermarket.
How much will he earn if he works:
(a) 7 hours
(b) 12 hours
(c) 3.5 hours
(d) 9.5 hours?
(a) (x3)4
(b) (q4)2 (q3)6
1.2
1.3
1.4
(c) 4x0
7 How much income tax is payable on the following taxable incomes?

(a) $5900
(b) $47 890
(c) $62 780
58
1.2
1.5
1.6
8 A deposit book of an account offering 7% p.a. has the

entries shown at right for the month of June.
(a) How much interest is payable for June if interest is
calculated:
(i) daily (ii) on the minimum monthly balance?
(b) by how much is (i) greater than (ii)?
1.7
June
Transaction
Balance
1
14
21
Balance
Deposit 285
Withdrawal 207
100
385
178
9 If R = 6%, T = 3 months, I = $12, then P =

1.7
12
12
12
12
0.25
A -----------B ------------------C --------------------------- D ---------------------- E 12 0.25 0.06
63
0.06 3
0.25 0.06
0.06
10 Natalie purchased a $80 shirt with lay-by. She had to pay a 20% deposit to
1.8
begin the lay-by.
(a) How much was the initial payment?
(b) If Natalie paid $15 per week, how many weeks did Natalie take to
pay off the shirt?
11 Andrew is purchasing a couch for $700 interest free for 6 months. He must
1.9
pay a $20 application fee and a $2.50 account-keeping fee per month.
(a) If Andrew pays for the couch in 6 months, how much will he have
spent on the couch altogether?
(b) After 6 months Andrew still owes $150. This amount is increased
by an interest rate of 28% p.a. charged on the previous 6 months.
How much will he now owe on the couch?
12 Calculate the total interest payable at the due date for the following set of
1.9
credit card transactions. The card has no interest-free days and charges an
annual rate of 14.55%.
Statement date: 5 March
4 February to 5 March
Transaction date
Amount ($)
Purchases
11 February
244.92
21 February
39.95
28 February
199.00
Due date: 31 March
Applications
13 In 2004 a small town had a population of 18 704. This represented a 12%

increase on the previous year.
(a) What was the population in 2003?
1.1
TECHNIQUES
59
(b) There is talk of a new industry coming to the area so, by the end of
2005, the population has increased a further 25%. What is the
population at that time?
(c) What has been the overall percentage increase in population since 2003?
14 A shop purchases crystal vases for $75 each.
(a) At what price do they need to be marked if there is to be a 40%
markup?
(b) The vases are not selling well so they are discounted by 10%. What
is their new selling price?
(c) What percentage markup does this represent on the cost price?
15 Effie works as a cleaner and is paid $19.50 per hour for a standard 35-hour
week (5 days 7 hours). If she works overtime she is paid time-and-a-half
for the first 2 hours and double time after that. In one week Effie worked
3 hours overtime on Tuesday, 1 hour overtime on Wednesday and 4 hours
overtime on Friday. Find her wage for the week.
16 Jenny has a gross weekly income of $860. She donates $750 per year
to registered charities, and has work-related expenses totalling
$690 annually.
(a) What is Jennys annual gross income, considering there are
52.18 weeks in a year?
(b) What is Jennys taxable income?
(c) How much should Jenny pay in tax per year?
17 Peter lends his brother Terry $5000. He is to be paid simple interest at the
rate of 5% p.a. with the debt to be fully repaid in 3 years.
(a) Find the total amount to be repaid.
(b) Find the amount of each repayment, if they are to be twice yearly.
18 Nicola repays her father $2835 to cover the amount of money she
borrowed 15 months ago, plus interest. If she paid 4% p.a. in interest,
how much did she borrow?
19 At the end of her course, Diana had a HECS-HELP debt of $20 504. After
university Diana gets a job with an annual salary of $37 500. This is also her
taxable income. The government will deduct 5.5% of this for HECS-HELP.
(a) How much HECS-HELP is deducted from Dianas pay in her
first year?
(b) If Diana remains on this salary, how many years will it take for her
to completely pay off her HECS-HELP debt? Round your answer up
to the nearest half-year.
60
1.2
1.5
1.6
1.7
1.7
1.8
20 Your financial institution requires a minimum payment on your credit card

of $50 or 8% of the amount outstanding, whichever is the greater. Find the
amount outstanding if the percentage calculation is equal to $50.
1.9
Analysis
21 Stamp duty is a State Government tax that is paid when property is

purchased. The following table gives some sample amounts of stamp duty
in the different states and territories of Australia.
Value of property
$200 000
$400 000
$600 000
Victoria
$7660
$19 600
$31 660
Northern Territory
$6800
$18 800
South Australia
$6830
$14 830
Western Australia
$5830
$14 505
Tasmania
$ 5675
$13 550
Queensland
$5600
$12 475
Australian Capital Territory
$5515
$13 475
New South Wales
$5490
$12 475
$23 330
$19 725
$22 490
(a) If stamp duty was calculated as a flat rate calculate the rate for each
of the states and territories for the $200 000 property. Give your
answers correct to two decimal places, where necessary.
(b) Calculate the flat rate for Victoria only for the other two property
values.
In fact, in Victoria stamp duty has a three-tiered structure.
Property value
Stamp duty
$20 000$115 000

$115 001$870 000
$870 001 or more
$280 plus 2.4% of the amount over $20 000

$2560 plus 6% of the amount over $115 000
5.5% of the total value
(c) Use this table to find the stamp duty payable on properties with the
following values:
(i) $110 000
(ii) $155 000 (iii) $260 000
(iv) $1.4 million
TECHNIQUES
61
Stamp duty in NSW is calculated according to the following rule:

Property value
Stamp duty
less than $14 000

$14 001$30 000
$30 001$80 000
$80 001$300 000
$300 001$1 000 000
greater than $1 000 000
1.25% of the amount

$40 490 plus 5.5% of the amount over $1 000 000
(d) Calculate the NSW stamp duty costs for each of the properties in (c).
(e) Will the Victorian stamp duty always be higher than the NSW stamp
duty for a property of equivalent value?
22 Michelle is in her second semester at University. She has a HECS-HELP
debt of $1799 from Semester 1 and has received another invoice for a
further $1799 for second semester.
(a) Assuming HECS-HELP is charged at the same rate for the next four
semesters (the end of her degree) what will be Michelles total HECSHELP liability?
(b) If all of this had been paid up-front each semester what total
payment would have been necessary?
Michelle will now pay off her HECS-HELP
Income
HELP repayment %
liability through the taxation system. The
nil
Below $23 242
payment schedule is shown in the table.
3.0%
$23 242$24 510
In her first year of employment Michelle
3.5%
$24 511$26 412
earns $29 245 (she worked for less than 12
4.0%
$26 413$30 638
months in the financial year).
4.5%
$30 639$36 977
5.0%
$36 978$38 921
(c) How much of her HECS-HELP debt will
5.5%
$38 922$41 837
Michelle pay that year?
6.0%
Above $41 838
In the next year Michelles income is $52 450.
(d) How much of her HECS-HELP debt will Michelle pay that year?
(e) How much debt remains?
(f) At this rate how many years will it take for Michelle to repay her total
HECS-HELP debt, assuming her income rises by 2.5% each year?
1 How much time has passed between the following? Answer in hours
and minutes.
62
Worksheet R1.10
3
4
5
6
7
8
(a)
(b)
7.1 cm
3 cm
Worksheet R1.11
Worksheet R1.12
Worksheet R1.13
Worksheet R1.14
Worksheet R1.15
Worksheet R1.16
Worksheet R1.17
(c) 1 cm
12 cm
(a) 6.15 a.m. and 1 p.m. the same day

(b) 8.40 p.m. and 5.12 a.m. the next day
Express each of the following numbers as a product of its prime factors.
(a) 25
(b) 12
(c) 42
Calculate:
(a) 17 50
(b) 15 32
(c) 20 25 + 12
What is the complement of each of the following angles? Remember,
complementary angles add to 90.
(a) 12
(b) 48
(c) 89
Simplify the following ratios.
(a) 30 : 12
(b) 44 : 84
(c) 1.5 : 4
Find the following. Write your answers as mixed numbers if appropriate.
(a) 3--5- 4--9(b) 5--8- 12
(c) 2 1--4- 2 2--3Copy and complete the following number patterns.
(a) 2, 5, 11, 23, ___, ___, ___
(b) 80, 55, 30, 5, ___, ___, ___
Find the perimeter of each of the following shapes.
13 cm
1.5 cm 4 cm
5 cm
10 cm
9 Find the area of each of the shapes in Question 8.

10 Solve each of the following equations.
3x 2
x
(a) x 3 = 8
(b) -------------- = 5
(c) 6 --- = 3
4
5
11 You have a normal pack of 52 playing cards and you select one card. Find
the probability of that card being:
(a) a spade
(b) an ace
(c) the Jack of Clubs
12 Find the interquartile range for the following data set:
12, 15, 13, 17, 19, 16, 14, 15, 14, 12, 15, 19, 13, 17, 16, 22, 21, 19, 20, 16, 18, 15
e
e
Worksheet R1.18
Worksheet R1.19
Worksheet R1.20
Worksheet R1.21
e
e
e
Worksheet C1.11
Worksheet C1.12
Assignment 1
TECHNIQUES
63

Heinemann Maths Zone 9 - Chapter 1

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01HMZVELS9EN_intro Page 0 Monday, June 30, 2008 10:53 AM

01HMZVELS9EN_intro Page 1 Monday, June 30, 2008 10:53 AM

ccording to figures published in

01HMZVELS9EN_intro Page 2 Monday, June 30, 2008 10:53 AM

1 Convert the following fractions to decimals.

321 -----------------100 000

2 Convert the following decimals to fractions in simplest form.

3 Evaluate the following.

(b) 3 1--3- 1 1--5-

(d) 2 1--4- 1 1--3-

4 Evaluate the following.

(c) 5.2 1.5

(b) 10% of 63.5 km

(d) 6.2 0.03

(c) 22% of 18.1 cm

9 (a) 110% of a quantity is 71.5. Find the quantity.

HEINEMANN MATHS ZONE

It is useful to begin this chapter with a quick review of fractions, decimals,

Fractions and decimals

(b) 3 2-9- 2 2-3-

(a) 1. Change mixed numbers to improper fractions.

(a) 1 1-5- + 2 2-36 8

2. Convert to a common denominator.

3. Perform the addition.

4. Write the answer as a mixed number.

(b) 1. Change mixed numbers to improper fractions.

(b) 3 2-9- 2 2-329

2. Change the to a and invert the fraction

3. Cancel (if possible).

4. Perform the multiplication.

5. Write the answer as a mixed number.

01HMZVELS9EN_text Page 4 Monday, June 30, 2008 10:42 AM

Converting fractions and decimals

(b) Write 8.624 as a fraction in simplest form.

2. Write the solution.

2. Cancel down (if possible).

3. Write the solution.

HEINEMANN MATHS ZONE

01HMZVELS9EN_text Page 5 Monday, June 30, 2008 10:42 AM

Remember when converting decimals to fractions that the number of zeros in

(a) 1. Write out the question as an expression.

2. Use your calculator to find the answer.

. Write the answer.

(b) 1. Write out the question as an expression. The answer

100% 45% = 55%

As with many calculator exercises, these examples could have been

01HMZVELS9EN_text Page 6 Monday, June 30, 2008 10:42 AM

(a) Increase $400 in the ratio 6 : 5.

(a) 1. Express the ratio in fraction form.

2. Multiply the quantity by the fraction

2. Multiply the quantity by the fraction

3. Express the answer in written form.

1 Evaluate the following.

2 Evaluate the following.

1 1--4- + 2 2--3- + 1 1--6-

(b) 6.98 + 11.54

HEINEMANN MATHS ZONE

01HMZVELS9EN_text Page 7 Monday, June 30, 2008 10:42 AM

3 Convert the following fractions to decimals.

4 Convert the following decimals to fractions in their simplest form.

8 Find the result when 1500 is increased by:

9 Find the result when 2200 is reduced by:

10 (a) Decrease $75 in the ratio 8 : 15.

7 Writing answers correct to two decimal places, find what percentage: