Professional Documents
Culture Documents
Consumer
mathematics
14
Tony buys all his
mechanic’s equipment at
this tool store. If Tony
buys $250 worth of tools
during a sale, how much
will he pay for them,
assuming he gets both
discounts? Does Tony
receive a 20% discount?
In this chapter we will
develop an understanding
of issues relating to
money: the various ways
of earning income, as well
as calculations relating to
discounts, profits and
losses and investments.
MQ9 Vic ch 14 Page 510 Wednesday, September 19, 2001 12:06 PM
Money
What is money?
From the beginning of time people have
found it necessary to exchange goods
and services. Early societies did this
without the need for money. This
system of barter is still a common
arrangement today.
Shopping
Shopping requires us to be able to use money, estimate our total shopping bill and the
change that we can expect. Most importantly, we need to be able to judge whether or
not we can afford to make our purchases.
WORKED Example 2
A dining suite of a table and six chairs was advertised at $899. If the table alone is worth
$389, how much does each chair cost?
THINK WRITE
1 Write the total cost. Total cost $899
2 Find the total cost of the chairs by 899
subtracting the cost of the table from − 389
the total cost. 510
Total cost of the chairs is $510.
85
3 Find the cost of each chair by dividing the 6 )510
total cost of chairs by the number of chairs.
4 Write the answer in a sentence. Each chair costs $85.
MQ9 Vic ch 14 Page 512 Monday, September 17, 2001 10:53 AM
WORKED Example 3
Estimate the total bill and the change, then find the exact amount for each.
A $100 note is used to pay the bill after purchasing:
2 packs of socks @ $16.95 per packet
3 packs of golf balls @ $19.95 per packet.
THINK WRITE
1 Round the cost of the socks to the Socks about $17 per pack
nearest dollar.
2 Round the cost of the golf balls to the Golf balls about $20 per pack
nearest dollar.
3 Find the total estimated cost of the Total estimated cost in dollars
socks and golf balls. = 2 × 17 + 3 × 20
= 94
4 Find the change by subtracting the total Estimated change in dollars
cost of the purchases from the amount = 100 − 94
tendered. =6
5 Answer the question in a sentence. The estimated total cost is $94 and the change
from $100 is $6.
6 Find the exact cost of the socks and the Total cost = 2 × 16.95 + 3 × 19.95
golf balls. = 33.90 + 59.85
= 93.75
7 Find the change given. Change = $100 − $93.75
= $6.25
8 Answer the question in a sentence. The total cost of the socks and the golf balls is
$93.75 and the change from $100 is $6.25.
Each pair of socks and each pack of golf balls costs 5c less than the estimated cost, so
the total cost of the goods is (5 × 5)c or 25c less than the estimated cost.
remember
remember
1. To change dollars to cents, multiply by 100.
2. To change cents to dollars, divide by 100.
3. To add, subtract, multiply or divide using money, use the same methods as are
used with decimals.
4. Money is rounded to the nearest 5 cents when cash is used because there are no
longer 1 or 2 cent coins.
5. Exact amounts are used for cheques, credit cards and electronic transactions.
6. When solving real-life applications using money, clearly state what is being
done at each step of the solution.
MQ9 Vic ch 14 Page 513 Monday, September 17, 2001 10:53 AM
14A Money
SkillS
1b
3 Round the following to the nearest 5 cents.
a $4.76 b $12.61 c $159.28 d $83.44
4 Year 9 has raised $245.40 for charity and want to share the money equally between
the Children’s Hospital, the Guide Dog Appeal and the Red Cross Shield Appeal.
How much money will be given to each charity?
WORKED 5 The cost of 5 packets of chocolate biscuits and a 2-litre bottle of milk was $15.60. If
Example
2
the bottle of milk cost $4.35, how much does a packet of chocolate biscuits cost?
$19 95 Golf
NEW
ball pack RELEASE
6 How much change would you receive from $50 if you purchased:
a the socks? b the cycle computer? c the backpack?
7 Rani can save $15 per week. How many weeks will it take for her to save enough to
buy the fitness shoes?
8 John has just selected a new set of golf clubs worth $489.95 and then buys two golf
ball packs. What is his total outlay?
9 Janine has just started full-time work. She pays a $100 deposit on the Handycam and
the balance in 10 equal monthly instalments. How much is each instalment, assuming
she pays no interest charges?
10 Nicole needs a new hair dryer. Her dad lends her $60 to buy the one shown. She
agrees to work for him in order to pay him back. They agree on $8 per hour. For how
long will she have to work to clear the debt?
11 Veda buys the Panasonic cordless phone with $50 deposit and 6 payments of $35 each.
How much more than the advertised price does she finally pay? Why would this be?
12 For her birthday, Cristi was given the advertised fitness shoes, the backpack, the socks
and the hair dryer by her family. If four people split the expense evenly, how much did
each person pay?
MQ9 Vic ch 14 Page 514 Monday, September 17, 2001 10:53 AM
For questions 13 and 14, estimate, then find the exact value for:
a the total bill
b the change.
WORKED 13 A $20 note is used to pay the supermarket bill after purchasing these goods:
Example
3
3 packets of soup @ $1.89 per packet
2 packs of pasta @ $1.24 per packet
2 boxes of cereal @ $2.95 per box.
14 $30 is used to pay the fruit shop for:
3 kg bananas @ $1.99 per kg
4 kg apples @ $2.95 per kg
2 kg oranges @ $3.25 per kg
1
--- kg mushrooms @ $3.90 per kg.
2
QUEST
S
M AT H
GE
1 Sam and Georgia were paid a total of $167.00 for painting a fence.
EN
Sam worked for 12 hours and Georgia worked for 8 hours. How much
CH L should each person receive?
AL
2 Olivia has 78 fifty-cent coins and 43 two-dollar coins. What percentage
of her money is made up of two-dollar coins?
3 Fifty people, half of whom were females, were asked if they liked
yoghurt. Twenty-seven of the people, including two-fifths of all the
males, said they did like yoghurt. How many of the females didn’t like
yoghurt?
4 Ingrid offered to pay her brothers $2 for doing her share of the
housework each day, but fined them $5 if they forgot to do it. After
4 weeks, Ingrid discovered that she didn’t owe her brothers any
money. For how many days did Ingrid’s brothers do her share of the
housework?
WORKED Example 4
Susan has an annual salary of $22 039.85. How much is she paid:
a weekly? b fortnightly? c monthly?
THINK WRITE
a 1 Annual means per year, so divide the salary a Weekly salary = $22 039.85 ÷ 52
by 52 because there are 52 weeks in a year, ≈ $423.84
and round to 2 decimal places.
2 Answer the question in a sentence. Susan’s weekly wage is $423.84.
b 1 There are 26 fortnights in a year so divide the b Fortnightly salary = $22 039.85 ÷ 26
salary by 26, and round to 2 decimal places. ≈ $847.69
2 Answer the question in a sentence. Susan’s fortnightly salary is $847.69.
c 1 There are 12 months in a year so divide the c Monthly salary = $22 039.85 ÷ 12
salary by 12, and round to 2 decimal places. ≈ $1836.65
2 Answer the question in a sentence. Susan’s monthly salary is $1836.65.
WORKED Example 5
Frisco has casual work at a fast-food store. He is paid $6.50 per hour Monday to Friday
and $9.80 per hour over the weekends. Calculate his total pay for a week in which he
worked from 5.30 pm to 10 pm on Friday and from 6 pm to 9.15 pm on Saturday.
THINK WRITE
1 Find the number of hours worked Monday Friday 5.30 pm to 10 pm is 4 1--2- hours.
to Friday and how much he is paid. $6.50 × 4.5 = $29.25
2 Find the number of hours worked over the Saturday 6 pm to 9.15 pm is 3 1--4- hours.
weekend and how much he is paid. $9.80 × 3.25 = $31.85
3 Find the total number of dollars earned. Total earned = $29.25 + $31.85
= $61.10
4 Write the answer in a sentence. Frisco’s total pay was $61.10.
remember
remember
1. 1 year = 52 weeks = 26 fortnights = 12 months
2. Hourly rates are usually greater on weekends or outside normal working hours.
3. A wage is a fixed rate per hour.
4. A salary is a fixed annual amount.
MQ9 Vic ch 14 Page 516 Monday, September 17, 2001 10:53 AM
WORKED 1 Johann has an annual salary of $36 482. How much is he paid:
Example
4
a weekly? b fortnightly? c monthly?
2 Anna earns $42 300 per annum. How much does she earn:
a weekly? b fortnightly? c monthly?
14.2 3 Find the annual salary of workers with the following weekly incomes:
HEET a $368 b $437.50 c $528.34.
SkillS
4 How much is earned per annum by those paid fortnightly salaries of:
a $783? b $836.90? c $1028.56?
5 Find the hourly rate for these workers.
a Rahni earns $48.75 for 5 hours.
b Francisco is paid $54.75 for 4 1--2- hours.
c Nhan earns $436.58 for a 38-hour week.
d Jessica works 7 1--2- hours a day for 5 days to earn $398.64.
6 Which of each pair is on the higher rate of pay:
a $2390 per month or $27200 per annum?
b $2063.58 per fortnight or $4300 per month?
7 Paul receives $38 950 per annum and is given a 4% wage rise. Hannah earns $40 286
per annum and gets a 2 1--2- % increase. Who is better off after the rise and by how much?
WORKED 8 Juan has casual work for which he is paid $7.20 per hour Monday to Friday and $9.95
Example
5
per hour on the weekends. Calculate his total pay for a week in which he worked from
5 pm to 10 pm on Thursday and from 2.30 pm to 7.00 pm on Saturday.
9 Mimi worked the following hours in one week.
Wednesday 5.30 pm to 9.00 pm
Thursday 6.45 pm to 9.00 pm
Friday 7.15 pm to 10.30 pm
If her pay is $8.30 per hour up to 9.00 pm and $10.08 per hour after that, what is her
total pay?
10 Tania has regular casual work as a sales assistant from 5 pm to 9 pm on Fridays and
from 8.30 am to 1.00 pm on Saturdays. How much does she earn per fortnight at the
flat rate of $8.75 per hour?
SHE
ET 14.1
Work
MQ9 Vic ch 14 Page 517 Monday, September 17, 2001 10:53 AM
1
1 Natalie went shopping and bought a pair of bathers for $38.95, a football for $75.50,
four pot plants at $8.75 each and a photograph album for $14.90. How much money
did Natalie spend in total?
2 Sally bought a motorbike costing $2785. She paid a deposit of $160 then paid the
remainder in 15 equal instalments. How much was each instalment?
3 Jacques’ furniture shop had a sale with 1--5- off the usual price of lounge suites. If the
original price of a suite was $5689, what will the sale price be?
4 Yelena is on a salary of $35 000 per year. Calculate this as a fortnightly amount.
5 Dimitri is paid a salary of $564.65 per week. How much is he paid a year?
6 Sung-Li earns $9.70 per hour. Calculate her wage for a 38-hour week.
7 Calculate Veronica’s hourly rate of pay, if she earns $638 for a 40-hour working week.
8 Trevor receives a salary of $56 000 per year. Calculate his monthly payment.
9 Rob is paid $527.06 for a week’s work. If Rob’s hourly rate is $13.87, calculate the
number of hours worked.
10 Find the wage earned by Yvonne if she works 38 hours at $9.50 per hour and a further
6 hours at $13.75 per hour.
Working overtime
Employees who work overtime spend extra hours at work. They receive extra pay at a
higher rate for the time they work beyond the normal hours.
Time-and-a-half means the worker is paid 1 1--2- times the normal hourly rate.
Double time means the worker is paid twice the normal hourly rate.
An employee’s gross wage is the amount paid before tax is taken out.
WORKED Example 6
Lani is paid $428.75 for a regular 38-hour week and time-and-a-half for overtime. For
working on Sundays or public holidays, she receives double time. What is her gross wage
for a week in which she works 43 hours, 3 of which were on a Sunday?
THINK WRITE
1 Find the hourly rate for a regular week, Regular hourly rate = $428.75 ÷ 38
rounded to the nearest cent. ≈ $11.28
2 Write the total earned for the regular Total for 38 regular hours = $428.75
38-hour week.
3 Find the number of hours worked Hours overtime = 43 − 38 − 3
overtime. =2
4 Find the total amount earned from Overtime wage = $(2 × 11.28 × 1.5)
overtime. = $33.84
5 Find the amount earned on Sunday. Sunday wage = $(3 × 11.28 × 2)
= $67.68
6 Find the gross wage. Gross wage = $428.75 + $33.84 + $67.68
= $530.27
7 Answer the question in a sentence. Lani’s gross wage is $530.27.
MQ9 Vic ch 14 Page 518 Monday, September 17, 2001 10:53 AM
remember
remember
Overtime is an increased hourly rate of pay to compensate for time worked
beyond normal hours.
Career profile
JO MOONEY — Direct care worker
Piecework
Clothing industry and factory workers can be paid for each ‘piece’ or article completed.
This kind of payment is not usually for permanent employees and other benefits are not
included.
WORKED Example 7
Len has a job washing cars in a car yard. He is paid $2.25 per car washed. Calculate what
Len earns in an afternoon where he washes 24 cars.
THINK WRITE
1 Find the amount earned by multiplying the Amount earned = $2.25 × 24
pay rate by the number of cars washed. = $54.00
2 Answer the question in a sentence. Len earns $54.00.
A person may also be paid on a sliding scale where the pay rate increases as the
number of completed items increases.
WORKED Example 8
Angelica is a machinist in a factory. For
the first 180 garments she is paid $1.96
and then $2.50 per garment thereafter.
What are her gross wages for a week in
which she produces 223 garments?
THINK WRITE
1 Find how many more than the basic Extra garments = 223 − 180
180 garments she makes. = 43
2 Find her total payment for the first Payment for basic garments = 180 × $1.96
180 garments. = $352.80
3 Find her total payment for the garments Payment for bonus garments = 43 × $2.50
at the bonus rate. = $107.50
4 Find her gross wage. Gross wage = $352.80 + $107.50
= $460.30
5 Write the answer in a sentence. Angelica earns a gross wage of $460.30.
In some cases, piecework is paid for multiple rather than single units. For example, for
letterbox deliveries you may be paid per 1000 deliveries made.
MQ9 Vic ch 14 Page 521 Monday, September 17, 2001 10:53 AM
THINK WRITE
1 Divide the number of brochures 3500 ÷ 1000 = 3.5
delivered by 1000 to calculate the So 3.5 thousand
number of thousands of brochures brochures are
delivered. delivered.
2 Multiply the number of thousands Holly’s pay = 3.5 × $23.00
deliveries by $23.00 to calculate what = $80.50
Holly is paid.
3 Answer the question in a sentence. Holly earns $80.50.
remember
remember
1. ‘Piecework’ means being paid a certain amount for each ‘piece’ produced.
2. In order to increase production, the rate offered may be increased.
3. The payment may be made for multiple rather than single units of work.
14D Piecework
WORKED 1 Hitani is paid 65 cents for each teacup she decorates. How much is she paid for decor-
Example
7
ating 150 teacups?
2 A group of 6 friends take a job picking fruit over summer. They are paid $4.50 for
each basket of fruit picked. Calculate the earnings of each person in the group if:
a Ross picked 23 baskets b Rachel picked 21 baskets
c Monica picked 19 baskets d Chandler picked 18 baskets
e Joey picked 31 baskets f Phoebe picked 9 baskets.
WORKED 3 Jack makes leather belts. The piece rate is $1.25 each for the first 50 belts and $1.50
Example
8
thereafter. What is his income for a day in which he produces 68 belts?
4 A production-line worker is paid $1.50 for each of the first 75 toasters assembled,
then $1.80 per toaster thereafter. How much does she earn on a day in which she
WORKED
assembles 110 toasters?
Example
5 Rudolf earns $28.50 per 1000 leaflets delivered to letterboxes. Calculate what Rudolf
9
will earn for a week in which he delivers 7500 leaflets.
MQ9 Vic ch 14 Page 522 Monday, September 17, 2001 10:53 AM
100x + 35y
A 100x + 35y B 100y + 35x C x + 35y D --------------------------- E x + 3.5y
100
MQ9 Vic ch 14 Page 523 Monday, September 17, 2001 10:53 AM
WORKED Example 10
Jack is a songwriter who is paid a royalty of 12% on
all sales. Calculate the royalty that Jack earns if a
song he writes sells CDs to the value of $150 000.
THINK WRITE
1 Find the royalty by calculating 12% of Royalty = 12% of $150 000
$150 000. = 0.12 × $150 000
= $18 000
2 Answer the question in a sentence. Jack earns $18 000 in royalties.
In some cases a sales representative is paid a small wage or retainer plus a percentage
of the value of the goods or services sold.
WORKED Example 11
A car salesperson is paid a retainer of $350 per week plus a commission of 8% of the
profits made by the company on cars sold.
a How much does the salesperson earn in a week when no sales are made?
b How much does the salesperson earn in a week during which a $5000 profit was
generated by that person’s sales?
THINK WRITE
a If no sales are made, only the retainer is a The salesperson is paid only the retainer,
paid. which is $350.
b 1 State the retainer. b Retainer = $350
2 Find the commission paid by finding Commission = 8% of $5000
the percentage of the profits. = 0.08 × $5000
= $400
3 Find the total earnings by adding the Total earnings = $350 + $400
commission to the retainer. = $750
4 Answer the question in a sentence. The salesperson earns $750.
MQ9 Vic ch 14 Page 524 Monday, September 17, 2001 10:53 AM
In other examples, the commission may be paid on a sliding scale. This means that a
different percentage is calculated on different parts of the sale price.
WORKED Example 12
A real estate agency receives 4% commission on the first $80 000 of a sale and 2% on the
remainder. How much commission is received on the sale of a $200 000 property?
THINK WRITE
1 Find the commission on the first Commission at 4% = 4% of $80 000
$80 000. = 0.04 × $80 000
= $3200
2 Find the difference between the value Difference = $200 000 − $80 000
of the property and $80 000. = $120 000
3 Find the commission on this difference. Commission at 2% = 2% of $120 000
= 0.02 × $120 000
= $2400
4 Find the total commission. Total commission = $3200 + $2400
= $5600
5 Answer the question in a sentence. The commission received on this sale is $5600.
remember
remember
1. Commission is a percentage of the value of the goods sold and is paid to the
salesperson.
2. The retainer is the fixed amount paid to a sales representative.
3. A royalty is a payment made to a person who owns copyright.
4. Royalties, like commission, are calculated as a percentage of sales.
HEET
14.3
14E
SkillS
Example
10
she earns in a year if a book she writes sells copies to the value of $30 000.
2 A home-improvements company pays commission at the rate of 16% on all sales.
reads
L Sp he What would a person earn who had sales to the value of:
et
EXCE
a $8000? b $6972.50?
Converting
percentages to 3 Linda is a car salesperson who is paid a 1.5% commission. Calculate the amount of
fractions or decimals money Linda earns in a week where her sales total $95 000.
reads
L Sp he WORKED 4 Gordon is paid a retainer of $200 per week plus a commission of 6% of the profits
et
EXCE
Example
Finding 11 made by the company on the goods that he sells.
the percentage a How much does Gordon earn in a week when no sales are made?
of an amount b How much does Gordon earn in a week during which a $7000 profit was gener-
hca
d ated by his sales?
Mat
Commission
5 Alfonso gets a retainer of $235 per week plus a commission of 5 1--2- % on sales. What
and are his total earnings in a week in which his sales are:
royalties a $1000? b $4500? c $7384?
MQ9 Vic ch 14 Page 525 Monday, September 17, 2001 10:53 AM
Earning money
Search the classified section in the newspaper for a job in these 4 categories.
1 Find a job that pays a salary and find out what that salary is.
2 Find a job that pays a wage and find out what the hourly rate for that job is. Is
there a possibility of overtime in this job?
3 Find a job that pays a commission. What is the rate of commission? Is a retainer
involved?
4 Find a job where payment is made by piece. What is the amount that is paid per
unit of work?
MQ9 Vic ch 14 Page 526 Monday, September 17, 2001 10:53 AM
WORKED Example 13
Find the sale price on a hat marked $72 if a 10% discount is given.
THINK WRITE
1 Find the percentage of the marked price that 100% − 10% = 90%
is paid by subtracting the per cent discount.
2 Find the sale price of the hat. 90% of $72 = 0.9 × $72
= $64.80
3 Write the answer in a sentence. The sale price of the hat is $64.80.
MQ9 Vic ch 14 Page 528 Monday, September 17, 2001 10:53 AM
Alternatively, the new price of an item can be found by finding the amount of the
discount, then subtracting the discount from the marked price.
Alternative solution:
Discount = 10% of $72.00
= $7.20
New price = original price − discount
= $72.00 − $7.20
= $64.80
WORKED Example 14
Peddles is a bicycle store which has offered a discount of 15% on all goods.
Find: a the cash discount allowed on a bicycle costing $260
b the sale price of the bicycle.
THINK WRITE
a Find the discount, which is 15% of the a Discount = 15% of $260
marked price. = 0.15 × $260
= $39
The cash discount allowed is $39.
b 1 To find the sale price, subtract the b Sale price = marked price − discount
discount from the marked price. = $260 − $39
= $221
2 Answer the question in a sentence. The sale price of the bicycle is $221.
WORKED Example 15
At Peddles, the price of a bicycle is reduced from $260 to $200. Calculate the percentage
discount.
THINK WRITE
1 Calculate the amount of the discount. Discount = $260 − $200
= $60
2 Write the discount as a percentage of Percentage discount = --------
60
260
- × 100%
the original price. ≈ 23%
3 Answer the question in a sentence. The percentage discount is about 23%.
remember
remember
1. A discount is usually a percentage of the marked price.
2. To find the discounted price of an item, reduce the original price by the amount
of the discount.
3. To find the percentage discount, write the discount as a percentage of the
original price.
MQ9 Vic ch 14 Page 529 Monday, September 17, 2001 10:53 AM
14F Discount
WORKED 1 Find the sale price of each article when the marked price and discount are shown as in
Example
13
this table.
HEET
14.5 XCE
L Spread
sheet
E
Marked price (R.R.P.) Discount
SkillS
Increasing or
a $1000 15% decreasing an
amount by a
percentage
b $250 20%
Math Math
c $95 12%
cad
cad
Finding the Discount
d $156 33 1--3- %
percentage
of a quantity
e $69.95 7 1--2- %
WORKED 2 A sale discount of 20% off was offered by the music store Solid Sound. Find:
Example
14
a the cash discount allowed on a $350 sound system
b the sale price of the system.
3 A calculator wristwatch is advertised at $69.95, less 10% discount. Find the sale
price.
4 A store-wide clearance sale advertised 15% off everything. XCE
L Spread
sheet
E
a What would be the selling price of a pair of jeans marked at $49?
b If a camera marked at $189 was sold for $160.65, was the correct One amount as a
percentage of
percentage deducted? another
5 T-shirts are advertised at $15.95 less 5% discount. How much would Jim pay for five
T-shirts?
WORKED 6 Find the percentage discount given on the items shown in the table. Round to the
Example
15
nearest per cent.
HEET
14.6
Original price Selling price
SkillS
a $25 $15
b $100 $72
c $69 $50
d $89.95 $70
7 Calculators were advertised at $20, discounted from $25. What percentage discount
was given?
8 A tennis racquet marked at $79.95 sells for $60. What percentage discount is this, to
the nearest whole number percentage?
9 CDs normally selling for $28.95 were cleared for $23.95. What percentage discount
was given?
MQ9 Vic ch 14 Page 530 Monday, September 17, 2001 10:53 AM
10 Allsports cleared their stock of soccer balls for $39.95. They had
been priced at $49.95. What percentage discount was given?
11 A discount of 15% reduced the price of a CD by $3.20.
a What was the original price of the CD?
b What was its selling price?
12 A discount of 22% reduced the price of an outfit by $48.
a What was its original price?
b At what reduced price was it selling?
13 multiple choice
I pay $1290 for 10 identical articles, being allowed a total discount
of $130. The marked price of each article is:
A $142 B $116 C $1420 D $2590 E $259
me 14 multiple choice
E ti
GAM
Successive discounts
At the beginning of this chapter we looked at
Tony, the mechanic, who bought $250 worth of
equipment at this tool store. Tony received the
15% off the marked price of all items and then
a further 5% trade discount.
When two discounts are given on the same
item or group of items these are called
successive discounts. In this case Tony receives
successive discounts of 15% and 5%.
Is this equal to a single discount of 20%?
1 Calculate the amount that is due after Tony
is given the first 15% discount.
2 From this amount apply the trade discount
of 5%, to find the amount that is due.
3 How much is the cash discount that Tony
receives?
4 Now calculate the amount that would have
been due had Tony received a single discount
of 20%. Is this the same answer?
5 Calculate the amount of cash discount that
Tony received as a percentage of the original
bill.
6 Would the discount have been the same had
the 5% discount been applied before the 15%
discount?
7 Now try the following problem. Calculate the
single discount that is equivalent to
successive discounts of 10% and 20%.
MQ9 Vic ch 14 Page 531 Monday, September 17, 2001 10:53 AM
Selling at a profit
Profit = selling price − cost
profit
Percentage profit = -------------- × 100%
cost
Selling at a loss
Loss = cost − selling price
loss
Percentage loss = ---------- × 100%
cost
WORKED Example 16
A music store buys CDs at $15 each and sells them for $28.95 each. What is the percentage
profit made on the sale of a CD?
THINK WRITE
1 Calculate the profit on each CD: Profit = $28.95 − $15
selling price − cost. = $13.95
13.95
2 Calculate the percentage profit: Percentage profit = ------------- × 100%
15
profit = 93%
------------- × 100%.
cost
3 Write the answer in a sentence, rounding to the The profit is 93% of the cost price.
nearest per cent if applicable.
To calculate the selling price of an item given the cost price and the percentage profit,
we increase the cost price by the given percentage.
WORKED Example 17
Ronan operates a sports store at a fixed profit margin of 65%. For how much would he sell
a pair of running shoes that cost him $40?
THINK WRITE
1 Find the selling price by first adding the Selling price = 165% of $40
percentage profit to 100% then finding = 1.65 × $40
this percentage of the cost price. = $66
2 Write the answer in a sentence. The running shoes would sell for $66.
MQ9 Vic ch 14 Page 532 Monday, September 17, 2001 10:53 AM
In other examples we could be required to calculate the cost price of an item when we
are given the selling price and the percentage profit. This is done by using the unitary
method of percentages as shown in the next worked example.
WORKED Example 18
In the same sports store, Ronan sells a tracksuit for $99.95. What would Ronan have paid
for the tracksuit?
THINK WRITE
1 Write the selling price as 165% of the 165% of cost price = $99.95
cost price.
2 Find 1% of the cost price by dividing 1% of cost price = $0.605 757 6
both sides by 165.
3 Find 100% of the cost price by 100% of cost price = $60.58
multiplying both sides by 100. Give
your answer to the nearest cent.
4 Answer in a sentence. Ronan would have paid $60.58 for the tracksuit.
remember
remember
1. (a) Profit = selling price – cost
(b) Loss = cost – selling price
profit
2. (a) Percentage profit = ------------- × 100%
cost
loss
(b) Percentage loss = --------- × 100%
cost
HEET
14.6
1 A supermarket buys frozen chickens for $3.50 each and sells them for $5.60. What is
SkillS
WORKED
Example
16 the percentage profit made on the sale of each chicken?
2 A restored motorbike was bought for $350 and later sold for $895.
reads d
L Sp he hca a How much profit was made?
et
EXCE
Mat
One amount Profit b What percentage was profit? Give your answer correct to the nearest whole
as a and number.
percentage loss
of another
MQ9 Vic ch 14 Page 533 Monday, September 17, 2001 10:53 AM
a $15 $20
b $40 $50
c $40 $30
d $75 $85
e $38.50 $29.95
5 A sports card collection costing $80 was sold for $65. What was the percentage loss?
6 Running shoes bought by a sports store for $30 per pair were sold at $79.95. What
percentage profit was made?
WORKED 7 Kyle runs a jewellery business which uses a fixed profit margin of 98%. For how 14.7
Example
much would she sell a necklace that cost him $830? HEET
17
SkillS
11 Sonja bought an old bike for $20. She spent $47 on parts and paint and renovated it.
She then sold it for $115 through her local newspaper. The advertisement cost $10.
a What were her total costs?
b What percentage profit did she make on costs?
c What percentage profit was made on the selling price?
12 A fruit and vegetable retailer buys potatoes by the tonne for $180, and sells them in
5 kg bags for $2.45. What percentage profit is made?
13 During a sale, a retailer allows a discount of 15% off the marked price. His sale price
of $60 still gives him a profit of 10%.
a What did the article cost him?
b What was the marked price?
14 multiple choice
A clothing store operates on a profit margin of 150%. The selling price of an article
bought for $p is:
A $151p B $150p C $2.5p D $1.5p E none of these
2
1 William owns a hairdressing salon and raises the price of haircuts from $26.50 to
$29.95. By what percentage did he increase the price of haircuts?
2 The price of milk increased by 8%. If the original price was $1.84, what is the new
price?
3 Rupert’s annual salary is $65 840. How much does he earn monthly?
4 Monica gets paid at an hourly rate of $15.03. On Friday, she worked 8 hours plus
4 1--2- hours overtime. If she is paid time-and-a-half for the overtime, what was her
total pay for Friday?
5 Uliana is paid a retainer of $220 per week as well as 12% of her sales. How much
would Uliana earn in a week if she sold $2500 worth of merchandise?
6 A 15% discount reduced the price of a basketball by $4.83. What was the original
price?
7 Tim works in a sports shop. He purchased wholesale golf shirts for $55 each. For how
much did he sell the shirts, if he made 163% profit?
8 Mark is paid $38 per 200 envelopes addressed. How much is he paid for addressing
225 envelopes?
9 Shannon buys a used car for $7500. The dealer requires a 15% deposit. Calculate the
deposit Shannon has to pay.
10 Mitchell is a plumber who has a bill for $278.50 from the local hardware store.
Mitchell is given a 10% trade discount, then a further 5% if the bill is paid in cash.
Calculate the amount that Mitchell must pay in cash. (Remember to round to the
nearest 5 cents.)
MQ9 Vic ch 14 Page 535 Monday, September 17, 2001 10:53 AM
WORKED Example 19
Zak borrows $3000 for 2 years at 9% per annum (p.a.) flat interest rate.
a How much interest is he charged?
b What total amount must he repay?
THINK WRITE
PrT
a 1 Flat means simple interest, so write a I = ---------- , where P = 3000, r = 9, T = 2
100
the formula and the known values of
the variables.
3000 × 9 × 2
2 Substitute known values. = ------------------------------
100
3 Simplify. = $540
4 Write the answer in a sentence. He is charged $540 interest.
b 1 Repayment = Amount borrowed b A=P+I
+ Interest. = 3000 + 540
= $3540
2 Write the answer in a sentence. Total amount to be repaid is $3540.
Care needs to be taken with examples where the term of the investment is given in
months or even in days. In these examples, the period of the investment needs to be
expressed in years.
MQ9 Vic ch 14 Page 536 Monday, September 17, 2001 10:53 AM
WORKED Example 20
Calculate the simple interest earned on an investment of $5000 at 8.45% p.a. over
18 months.
THINK WRITE
PrT
1 Write the formula and the known values I = ---------- , where P = 5000, r = 8.45, T = 1.5
100
of the variables, converting 18 months to
1.5 years.
5000 × 8.45 × 1.5
2 Substitute known values. = ------------------------------------------
100
3 Simplify. = $633.75
4 Write your answer in a sentence. The simple interest earned is $633.75.
We can also use the simple interest formula to find the principal, interest rate or the
term of the investment by substituting the known values into the formula and solving
the resulting equation.
WORKED Example 21
Anthony invested $1000 at a simple interest rate of 4.6%. For how long must he invest it in
order to earn him $100 in interest?
THINK WRITE
PrT
1 Write the formula and the known I = ---------- , where I = 100, P = 1000, r = 4.6
100
values of the variables.
1000 × 4.6 × T
2 Substitute the given values. 100 = -----------------------------------
100
3 Solve the equation. 100 = 46T
T= 100
---------
46
≈ 2.1739
4 Change the decimal part of the years to 0.1739 years = (0.1739 × 12) months
months. = 2.09 months
5 Write the answer in a sentence using Anthony must invest for 2 years and 2 months.
years and months.
remember
remember
Amount borrowed × Interest rate × Time in years
1. Simple Interest = ----------------------------------------------------------------------------------------------------------------------
100
PrT
I = ----------
100
2. Total amount repaid = Amount borrowed + Simple Interest
A=P+I
3. The abbreviation p.a. stands for per annum and means per year.
MQ9 Vic ch 14 Page 537 Monday, September 17, 2001 10:53 AM
14H
sheet
E
Simple interest Simple and
compound
interest
WORKED 1 Monique borrows $5000 for 3 years at 8% per annum (p.a.) flat interest rate. Math
Example
a How much interest is she charged?
cad
19
b What total amount must she repay? Simple
interest
WORKED 2 Calculate the simple interest earned on an investment of $15 000 at 5.2% p.a. over
Example
20
30 months.
GC pro
3 For each of the five loans in the table, calculate:
gram
i the simple interest Simple
ii the amount repaid. interest
7 Carla borrows $3762 for an overseas trip at 8.9% p.a. simple interest over 20 months.
If repayment is made in equal monthly instalments, how much is each instalment?
WORKED 8 Michael invested $2000 at a simple interest rate of 4% p.a. For how long must he
Example
21
invest it in order for it to earn him $200 in interest?
9 Jodie wants to earn $200 in interest over the next two years. If she can invest her
money at 8% p.a., how much does she need to invest to earn the $200?
10 If the simple interest charged on a loan of $9800 over 2 years 9 months is $2290.75,
what percentage rate of interest was charged?
11 Find the missing quantity in each row of the table.
Rate of interest
Principal p.a. Time Interest earned
a $2 000 6% $240.00
c 7% 3 years $126.00
12 A $269 000 business is purchased on $89 000 deposit and the balance payable
over 5 years at 8.95% p.a. flat rate.
a How much money is borrowed to purchase this business?
b How much interest is charged?
c What total amount must be repaid?
d Find the size of each of the equal monthly repayments.
E ti
me 13 For each of these deposits, use Term deposit interest rates (p.a.)
GAM
summary
Copy the sentences below. Fill in the gaps by choosing the correct word or
expression from the word list that follows.
1 is a printed promise by a government to guarantee the value
shown with its own resources. Ours is a currency of 100 cents
to the dollar.
2 To change dollars to cents, by 100. To change cents to dollars,
by 100.
3 A is a fixed annual amount, which is divided into weekly, fort-
nightly or monthly payments.
4 Wages are based on a fixed rate per hour, with at a
higher rate. Special allowances, leave loading, sick pay, parental leave, and
so on are also paid.
5 A may be paid to a salesperson and is calculated as a per-
centage of the value of goods sold. are special commissions
paid to authors, composers, and so on.
6 A person doing is paid depending on the quan-
tity of goods produced.
7 A is a percentage reduction of the marked or recommended
retail price (RRP). A discount of 15% means you pay 85% of the RRP.
8 Sale price = marked - discount
9 Profit = price − cost = cost − selling price
_______ loss
Percentage profit = --------------------- × 100% Percentage loss = ------------ × 100%
cost ____
PrT
10 I = ---------- where
100
I= (in dollars)
P= (in dollars)
r = rate per (as a per cent)
T= (in years).
WORD LIST
time piecework overtime profit
commission decimal annum royalties
divide money cost discount
salary principal simple interest selling
price multiply loss
MQ9 Vic ch 14 Page 540 Monday, September 17, 2001 10:53 AM
CHAPTER
review
1 Calculate these amounts.
14A a $2.45 + $13.20 + $6.05
b $304.60 − $126.25
c $9.65 × 7
2 What is $65.50 ÷ 11? (Round your answer to the nearest 5 cents.)
14A
3 Heo buys a new television set marked $495. He pays a $100 deposit and 12 payments of
14A $40 each. How much more than the marked price does he finally pay?
4 Estimate the total bill and change, then find the exact amounts when $150 is used to buy:
14A 10 disks at $0.95 each
2 games at $59.95 each
1 file box at $8.95.
14B 5 Jane earns an annual salary of $45 650. Calculate her fortnightly pay.
6 Express $638.96 per week as an annual salary.
14B
7 Frank works as a casual shop assistant and is paid $8.20 an hour from 3.30 pm to 5.30 pm,
14B Monday to Friday, and $9.50 an hour from 7 am to 12 noon on Saturday. What is his total
pay for the week?
8 Daniel earns $10 an hour for a regular 38-hour week. If he works overtime, he is paid
14C double time. How much would he earn if he worked 42 hours in one week?
MQ9 Vic ch 14 Page 541 Monday, September 17, 2001 10:53 AM
12 A salesperson earns a $250 per week retainer, plus 2% commission on the first $10 000 sale
and 1 1--2- % on the remainder. What is the total income for a week in which sales to the value 14E
of $18 000 were made?
13 Jennifer is to start a new job selling mobile phones. She is paid commission only at the rate
of 17 1--2- % of sales. What value of sales must she make in order to receive commission of 14E
$600 in one week?
MQ9 Vic ch 14 Page 542 Monday, September 17, 2001 10:53 AM
15 A discount of 18% on a tennis racquet reduced the price by $16.91. What was the sale
14F price?
16 After a 5% discount, a telephone bill is $79.50. How much was the bill originally?
14F
17 A portable CD player bought for $129 was later sold for $85. What percentage loss was
14G made on the sale?
18 Find the percentage profit on a Mini Disc recorder purchased for $320 and later sold for
14G $350.
19 Steve Warne buys a cricket bat for $85, signs it and donates it for a sport’s auction. If it sells
14G for $500:
a what is the percentage increase in the bat’s value?
b what is the dollar value of the signature?
20 a Find the simple interest on an investment of $4000 for 9 months at 4.9% per annum.
14H b To what amount will the investment grow by the end of its term?
21 Calculate the monthly instalment needed to repay a loan of $12 500 over 40 months at 9 3--4- %
14H p.a. flat interest rate.
22 A simple interest loan of $5000 over 4 years incurred interest of $2300. What interest rate
14H was charged?
test
yourself
CHAPTER
14