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MQ9 Vic ch 14 Page 509 Monday, September 17, 2001 10:53 AM

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

510 Maths Quest 9 for Victoria

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.

Many societies have used money


as a medium of exchange.

Shell money used in Papua New Guinea

To be effective, money must be:


1. easy to carry
2. in convenient units
3. durable
4. difficult to counterfeit.
Pieces of metal (coins), paper (notes
or cheques) and plastic cards are used as
money. Other objects have been used
throughout history.
All modern money is really a printed
promise by a government that may be
legally exchanged for goods or services.
The government is promising to back
the printed value with its own resources
(including gold).

Operations with money


Australian currency is a decimal system using dollars and cents.
There are 100 cents in a dollar.
To change dollars to cents, multiply by 100. Multiply because there will be more
cents than dollars.
To change cents to dollars, divide by 100. Divide because there will be fewer
dollars than there are cents.
When using cash, amounts are rounded to the nearest 5 cents because 1 and 2 cent
coins are no longer in circulation. For example, 61c and 62c would be rounded down to
60c while 63c and 64c would be rounded up to 65c. Similarly, 66c and 67c would be
rounded down to 65c while 68c and 69c would be rounded up to 70c.
When paying by cheque or by credit card, the exact amount is paid in dollars and cents.
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Chapter 14 Consumer mathematics 511


WORKED Example 1
a Change $2.45 into cents. b Write 20c in dollars.
THINK WRITE
a 1 Write the given amount and change a $2.45 = (2.45 × 100) cents
dollars to cents by multiplying by 100.
2 Write the answer. = 245 cents
b 1 Write the given amount and change b 20c = $(20 ÷ 100)
to dollars by dividing by 100.
2 Write the answer. = $0.20

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

512 Maths Quest 9 for Victoria

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.
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Chapter 14 Consumer mathematics 513

14A Money

WORKED 1 Change each of the following into cents.


Example
1a a $7.55 b $3.05 c $2.40 d $9
2 Change each of the following to dollars.
WORKED
Example a 685 cents b 450 cents c 5 cents d 805 cents HEET
14.1

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?

Questions 6–12 refer to these advertised products.

$16 95 Handycam traveller $229


$999
PRO Cordless phone
3 Pair P41
sock pack 15 balls

$19 95 Golf
NEW
ball pack RELEASE

$24 95 Back Pack


Mid Grip Bag $19 95
$54 95
$39 95 Cycle computer $59 95
CATE Ladies
Hair Fitness Shoe
dryer

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

514 Maths Quest 9 for Victoria

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?

How much is one million dollars?


1 If you spent $100 every day, how many days would it take to spend a million
dollars? How many years would it take to spend the million dollars?

2 Measure a $1 coin. How far would one


million of them stretch, laid side by side?
Find the height of a pile of a million
$1 coins. (Use practical units.)

3 If a $100 note is about 0.1 mm thick, how thick


would a wad worth $1 000 000 be?
MQ9 Vic ch 14 Page 515 Monday, September 17, 2001 10:53 AM

Chapter 14 Consumer mathematics 515


Wages and salaries
Self-employed people charge a fee for service or sell goods for a profit.
Employees may be paid for their work in a variety of ways.
A wage is based on a fixed rate per hour. Hours outside the normal work period are
paid at a higher rate.
A salary is a fixed annual (yearly) amount, usually paid fortnightly or monthly.
There is no extra pay for hours outside the normal work period but time off ‘in
lieu’ may be arranged.

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.
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516 Maths Quest 9 for Victoria

14B Wages and salaries

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
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Chapter 14 Consumer mathematics 517

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

518 Maths Quest 9 for Victoria

remember
remember
Overtime is an increased hourly rate of pay to compensate for time worked
beyond normal hours.

14C Working overtime

1 Calculate the following overtime payments:


a 3 hours at time-and-a-half when the hourly rate is $8.54
b 4 1--2- hours at double time when the hourly rate is $12.68
c 5 hours at time-and-a-half and 1 1--2- hours at double time when the hourly rate is $16.50.
2 Calculate the following total weekly wages:
a 38 hours at $12.50 per hour, plus 2 hours at time-and-a-half
b 40 hours at $14.92 per hour, plus 3 1--2- hours at time-and-a-half
c 37 1--2- hours at $18.32 per hour, plus 3 hours at time-and-a-half and 2 hours at
double time.
3 Julio is paid $472.80 for a regular 38-hour week and time-and-a-half for overtime.
a What is his hourly rate of pay?
b How much is he paid for 3 hours of overtime?
c What is his gross wage for a week in which he works 41 hours?
4 Juliana is paid $516.30 for a regular 39-hour week and time-and-a-half for overtime.
a What is her hourly rate of pay?
b How much is she paid for 2 hours of overtime?
c What is her gross wage for a 41-hour week?
WORKED 5 Albert is paid $398.50 for a 40-hour week, time-and-a-half for overtime and double
Example
6 time for Sundays and public holidays. What is his gross wage for a week in which he
works 48 hours, 5 of which are on Anzac Day?
6 Rema earns $416.84 per 38-hour week as a secretary. She works 4 hours overtime at
time-and-a-half in one particular week. What is her pay for that week?
7 Normal hourly rates for a 15-year-old are $7.56. Casual workers get an extra 25%
loading instead of sick and holiday pay.
a What is the casual hourly rate?
b How much is a 15-year-old casual paid for a 4 1--2- hour shift?
8 Karen receives an annual salary of $26 572.
a What is her fortnightly pay?
b What is she paid for her annual 4-week holiday, for which she receives an extra
17 1--2- % loading?
9 Brian earns $621.40 for a standard 39-hour week, time-and-a-half for overtime, and a
$27.53 per week allowance for working on scaffolding. Calculate his gross pay for a
week in which he works on scaffolding, and does 4 hours overtime.
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Chapter 14 Consumer mathematics 519


10 Santiago is a baker who works only on weekends. On Saturdays he earns time-and-a-
half for the first 4 hours and double time after that. On Sundays it’s all double time. If
the baker’s award for normal working hours is $16.80 per hour, how much does he
earn in a weekend in which he works from 7.30 pm Saturday to 3.00 am Sunday and
8.30 pm to midnight on Sunday?
11 multiple choice
A standard working week is 38 hours and a worker puts in 3 hours overtime at time-
and-a-half and 2 hours at double time. To how many hours at the standard rate is her
total work time equivalent?
A 43 B 46 1--2- C 44 1--2- D 45 E None of these

Career profile
JO MOONEY — Direct care worker

1. Our clients are on a pension. We help them


to work out a budget for a fortnight. We
have to ensure that they cover all their
expenses for the fortnight.
2. Petty cash and grocery ledgers need to be
kept for the household’s shared expenses.
3. We use Maths in our cooking each evening.
We may have a recipe for 4 and need to
make enough for anywhere between 2 to
10 people.
As a direct care worker, I am paid a wage.
This wage can vary depending on the hours
worked and the time of the day or week.
Name: Jo Mooney
Permanent and casual staff members are also
Profession: Direct care worker
paid at different rates. If I work on a
Qualifications: Certificate IV in Community Saturday, my hourly rate is calculated at
Services/Disability time-and-a-half. On a Sunday it is double
Employed at a Community Residential Unit time while on public holidays it is double-
time-and-a-half. If I work after 6.00 pm, my
I have always been interested in working with pay for that day is also increased by 10%.
people with intellectual disabilities. My work
involves directing and aiding clients in their Questions
daily lives. We try to teach them independent 1. List 2 ways in which Jo uses maths in her job.
2. For a permanent Grade 1 first-year care
living skills — we teach them how to get to
worker, the hourly rate is $11.56. Calculate
work using public transport, help them with
the hourly rate for working on a:
their washing, cooking and cleaning. The (a) Saturday (b) Sunday (c) public holiday.
staff members are also responsible for the 3. For a casual Grade 5 third-year care worker,
day-to-day running of the house including the hourly rate is $19.08. Calculate the
maintenance, finance, and so on. hourly rate for working on a:
Maths is very useful in everyday life. I use (a) Saturday (b) Sunday (c) public holiday.
maths every day in my job. Here are just a 4. Find out more about courses offered to
few examples. become a direct care worker.
MQ9 Vic ch 14 Page 520 Monday, September 17, 2001 10:53 AM

520 Maths Quest 9 for Victoria

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.
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Chapter 14 Consumer mathematics 521


WORKED Example 9
Holly is delivering brochures to letterboxes in her local area.
She is paid $23.00 per 1000 brochures delivered. Calculate
what Holly will earn for a delivery of 3500 brochures.

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.
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522 Maths Quest 9 for Victoria

6 Dimitri earns $4.50


for each box of
fruit picked.

a How much does he make for picking 20 boxes?


b How many boxes must he pick to earn at least $150?
c If he takes 4 hours to pick 12 boxes, what is his hourly rate of pay?
7 Pauline uses her home computer for word processing under contract to an agency. She
is paid $7 per page for the first 50 pages, $9 per page from 51–100 pages, and $10 per
page thereafter. Calculate her gross pay for a period in which she prepares:
a 48 pages b 67 pages c 123 pages.
8 Gustav is paid 30 cents for each toy assembled, up to the first 100. For the next 50 he
receives 40 cents per toy. Any more than that attracts a payment of 50 cents per toy.
Calculate his gross pay for the day in which he assembles:
a 98 toys b 136 toys c 167 toys
9 Rani delivers bills to letterboxes and is paid $28 per thousand.
a How much does she earn for delivering 2500 items?
b How many must she deliver to earn $100?
c If she takes 6 hours to deliver each thousand
on average, what is her hourly rate of pay?

10 Georgio delivers pizzas. He is paid $3 per


delivery from 5 pm to 9 pm and $4 per
delivery after 9 pm.
a How much does he earn on a night in
which he makes 12 deliveries by 9 pm and
4 deliveries between 9 pm and 10.30 pm?
b What are his average earnings per hour if
he has worked from 5 pm to 10.30 pm?

11 Tina packs canned goods into boxes as they


come off a production line. In a shift she is paid 20 cents per box up to 600, then
25 cents per box thereafter. Find her earnings for a shift in which she packs:
a 580 boxes b 620 boxes c 650 boxes.
d What is her average hourly rate of pay for an 8-hour shift in which she packs
635 boxes?
12 multiple choice
If a pieceworker earns x cents per article up to 100 articles and y cents per article there-
SHE
ET 14.2 after, then his total earnings (in dollars) for a time in which he produces 135 articles is:
Work

100x + 35y
A 100x + 35y B 100y + 35x C x + 35y D --------------------------- E x + 3.5y
100
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Chapter 14 Consumer mathematics 523


Commission and royalties
Commission is a method of payment used mainly for salespeople. The commission
paid is usually calculated as a percentage of the value of goods sold.
A royalty is a payment made to a person who owns a copyright. For example a
musician who writes a piece of music is paid a royalty on CD sales. An author who
writes a book is also paid a royalty based on the number of books sold. Royalties are
calculated in the same way as commission; that is, as a percentage of sales.

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

524 Maths Quest 9 for Victoria

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

Commission and royalties


HEET
14.4
WORKED 1 Danyang is a writer who is paid a royalty of 10% on all sales. Calculate the royalty
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

Chapter 14 Consumer mathematics 525


6 Bryce is an author. His publisher pays him a fixed allowance of $500 per month, plus
4 1--2- % royalty on sales. What would be his income for a month in which his book sales
totalled:
a $0? b $2000? c $15 000? d $23 750?
WORKED 7 A real estate agency receives 4% commission on the first $80 000 of a sale and 2% on
Example
12
the rest. How much commission is received on the sale of a $280 000 property?
8 At a second real estate agency, the commission rate is 5% on the first $18 000 of sale
price and 2 1--2- % on the remainder. Find the commission on the sale of the $280 000
property.
9 Ingrid’s real estate agency pays her 4% commission on the first $50 000 of sale price,
then 2% thereafter. How much commission would she receive on the sale of a
property worth:
a $48 000? b $51 000? c $235 000?
10 Yanu works for a boat broker who pays him 8% of the first $25 000 of the sale price,
then 3 3--4- % on the rest. Calculate the commission he receives on the following sales:
a $20 000 b $70 000 c $395 000.
11 Veronica earns $150 per week plus 3 1--2- % on sales, while Francis earns 6% com-
mission only.
a How much does each earn on sales of $3600?
b What level of sales would yield each the same income?
12 Wolfgang, a car salesman, is paid a weekly retainer of $375, plus 10% of the dealer’s
profit on each vehicle. Find his total income for weeks in which the dealer’s profits on
vehicles he sold were:
a $3500 b $5980 c $7036.49.
13 multiple choice
A salesperson is paid x% commission on $2000 of sales. The simplest expression for
the commission value is:
A $20x B $2000x C $2000 × 0.0x
D 20x% E none of these
14 multiple choice
Alfonso is paid a retainer of $r per week plus 4% commission on all sales. What are
his total earnings for a fortnight in which his sales reach $s?
A r + 4s B 2(r + 0.04s) C 2r + 0.08s
D 2r + 0.04s E None of these

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

526 Maths Quest 9 for Victoria

This chemical carries


carries the genetic
genetic messag
message for
for
plant and animal dev
development.
Calculate the
commission to be paid for the Sally's
transactions given.The amount and Stock Brokers
the letter beside each gives the Charges 0.8% commission
on share transactions. $2340
puzzle’s answer code.
$528.75
Grand
$70 000 worth of mining
shares
L
Real Estate $1020
Commission charges are $250 000 shares in Myer N
3% on first $100 000
then 3.5% on remainder.
$1311.20
$42 500 in BHP shares O
$7488
House sold for $145 000 A $9800 in Bank shares R
$78.40
Factory sold for $307 000 B $850 in IBM shares U
$960
Unit goes for $110 000 C Colin's Cute Cars $10 245
Colin pays his salesmen
Flat sells for $78 000 D a 4.5% commission on
their sales. $340
Office sells for $280 000 E $2000
Bill sells a VW for $8200
and a Ford for $5300.
C
$6.80
Kerryn sells a HOLDEN
for $27 200. D $3350
Cheryl's Sports
Cheryl pays her managers a Frank sells a VOLVO for
commission of 0.4% on $11 750.
E $560
the monthly income of
her stores. Yvonne sells a HONDA
for $13 000 and a BMW I $9300
for $6500.
BOB (Kew store) has $4950
sales of $307 000. C
Barbara's
Transport $607.50
SANDRA (Newcastle store) Barbara pays her state
brings in $240 000. I managers a commission
of 1.8% on their yearly $4575
profits.
BRUCE (North Perth)
manages $255 000 in sales.
O $1228
GEORGE (NSW) has a
profit of $275 000.
I
LINDA (Glenelg) has sales $877.50
of $327 800. X RACHEL (Vic) has a profit
of $ 416 000. Y
$1224
MQ9 Vic ch 14 Page 527 Monday, September 17, 2001 10:53 AM

Chapter 14 Consumer mathematics 527


Discount
To clear old or slow-moving stock, or fashion items at the end of a season, stores offer
discounts.
A discount is a percentage of the price marked on the article.
To calculate the amount of discount, we find this percentage of the marked price. To
calculate the selling price of a discounted item, we decrease the marked price by the
given percentage or simply subtract the amount of discount from the marked price.

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

528 Maths Quest 9 for Victoria

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.

To calculate the percentage discount, we write the monetary amount of discount as a


cash discount 100
percentage of the original price. Percentage discount = -------------------------------- × --------- %.
original price 1

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

Chapter 14 Consumer mathematics 529

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

530 Maths Quest 9 for Victoria

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

I am allowed a discount of 10% off the total price of 6 articles


Consumer
mathematics
which cost $x each. The price finally paid is:
— 001 A $60x B $6x C $0.06x D $0.6x E $5.4x

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

Chapter 14 Consumer mathematics 531


Profit and loss
When a retailer calculates the price to be marked on an article, many overhead costs
must be taken into account: staff wages, rent, store improvements, electricity, adver-
tising and so on.
Profit is the difference between the total of the retailer’s costs (cost price) and the
price for which the goods actually sell (selling price).
If costs exceed selling price, a loss is made.

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

532 Maths Quest 9 for Victoria

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

3. (a) Selling price = (100% + percentage profit) of cost price


(b) Selling price = (100% − percentage loss) of cost price

14G Profit and loss

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

Chapter 14 Consumer mathematics 533


3 For each of the following items, find the percentage profit or loss.

Cost price Selling price

a $15 $20
b $40 $50
c $40 $30
d $75 $85
e $38.50 $29.95

4 Rollerblades bought for $139.95 were sold


after six months for $60.
a How much was the loss?
b What was the percentage loss? Give your
answer to the nearest whole number.

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

8 Find the selling price for each item.


a Jeans costing $20 are sold with a profit margin of 95%.
b A soccer ball costing $15 is sold with a profit margin of 80%.
c A sound system costing $499 is sold at a loss of 45%.
d A skateboard costing $30 is sold with a profit margin of 120%.
WORKED 9 A camping goods shop operates on a profit margin of 85%. How much would the
Example
18
shop have paid for a sleeping bag that sells for $89.95?
10 A major department store marks up each item using a profit margin of 120%.
a How much did it cost the store to buy a shirt if it is sold for $55?
b How much did it cost the store to buy perfume that is sold for $106?
c What was the cost to the store of a kitchen appliance sold for $89.95?
MQ9 Vic ch 14 Page 534 Monday, September 17, 2001 10:53 AM

534 Maths Quest 9 for Victoria

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

Chapter 14 Consumer mathematics 535


Simple interest

Interest is a percentage charged for the use of someone else’s money.


Investors receive interest from banks or credit unions for lending them money over a
certain time period.
Borrowers pay interest to the financial institution for the use of their money for a
fixed period.
Simple interest is calculated as a percentage (per annum) on an initial investment
(called the principal). Flat rate interest is the term used when referring to loans and is
charged each year (per annum) on the full amount originally borrowed.
PrT
The formula used is I = ----------
100
where I is the simple interest (in dollars)
P is the principal or amount borrowed or invested (in dollars)
r is the rate of interest per annum (as a per cent)
T is the time for which the money is invested or borrowed (in years).
Amount to be repaid = Principal + Interest
A=P+I

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

536 Maths Quest 9 for Victoria

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.

The same method is used when we are asked to find:


the principal given I, r and T
the interest rate given I, P and T.

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

Chapter 14 Consumer mathematics 537


L Spread
XCE

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

Principal ($) Interest rate per annum Time


a 1 000 5% 2 years
b 4 000 6% 3 years
c 800 4.5% 48 months
d 2 700 3.9% 2 years 6 months
e 15 678 9.2% 42 months

4 Find the final value of each of the following investments:


a $3000 for 2 years at 5% p.a. b $5000 for 3 months at 4.3% p.a.
5 One million dollars was invested for 5 days at 6.2% p.a. How much interest did it
earn?
6 Hasim borrows $4950 to buy a used car. The bank charges a 9.8% p.a. flat rate of
interest over 30 months.
a What total amount must he repay?
b How much is each equal monthly repayment?
MQ9 Vic ch 14 Page 538 Monday, September 17, 2001 10:53 AM

538 Maths Quest 9 for Victoria

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

b $3 760 5.8% $545.20

c 7% 3 years $126.00

d 4.9% 1 year 9 months $385.88

e $10 000 1 1--2- years $1200.00

f $8 573 40 months $1085.91

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

the table at right to calculate:


Consumer i interest received Amount $ 1–3 months 4–6 months
mathematics
— 002 ii total amount credited to your
1000–4999 3.9% 4.1%
account at the end of the
SHE
ET 14.3 investment term. 5000–19 999 4.1% 4.25%
Work

a $3000 for 3 months


20 000 + 4.25% 4.4%
b $25 000 for 100 days
MQ9 Vic ch 14 Page 539 Monday, September 17, 2001 10:53 AM

Chapter 14 Consumer mathematics 539

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

540 Maths Quest 9 for Victoria

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

Chapter 14 Consumer mathematics 541


9 Bjorn earns $468.75 per week award wage for a 38-hour week.
a What is his standard hourly rate? 14C
b If he is paid time-and-a-half for normal overtime, what is his pay for a week in which he
works 41 hours?
10 Xana makes gift cards as a hobby and is paid 55 cents for each one.
a How much would she earn if she made 50 cards? 14D
b How many cards would she need to make to earn $44?
11 Kim sells cakes to the local
shop. If the shop pays for the 14D
ingredients, she is paid $3.20
for each cake that she makes
and 50 cents for each slice.
If Kim makes 5 cakes and
15 slices one week, how
much does she earn?

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

542 Maths Quest 9 for Victoria

14 Goods listed at $180 were discounted by 22%.


14F a What was the sale price?
b If they had sold for $100, what would the percentage discount have been?

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

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