5

Number

Consumer arithmetic earning money

As all of us have the capacity to earn and spend money, we are all consumers. As consumers, we need to calculate our earnings, so that we can budget and determine what we can afford to buy.

In this chapter you will:

calculate earnings from wages, salaries, casual work, overtime, commission, piecework, bonuses and holiday loadings calculate weekly, fortnightly, monthly and yearly incomes calculate net income from gross income after considering deductions such as taxation and superannuation prepare a budget for a given income calculate the best buy from a range of products or brands calculate discounts, including successive discounts

Wordbank

income Money earned from work, property, investment or an allowance. salary A xed yearly amount of money (annual income) that is paid weekly, fortnightly or monthly, usually to professional people and ofce workers. Since a salary is xed, it is not dependent on the number of hours worked. wage An amount of money paid to people for work, calculated on the basis of the number of hours worked. A wage is paid at an hourly rate and the greater the number of hours worked, the higher the wage. Wages are usually paid weekly. gross A gross is a total without any deductions. A gross income is the total amount of money earned. net Net is the amount remaining after all deductions. Net income is the gross income minus all deductions.

Think!
Cindy was considering three different job offers. The rst job would pay her $32 600 annually, the second job would pay her $2800 per month, while in the third job she would earn $1275 per fortnight. Cindy chose the third job. Did she choose the highest-paid job?

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Start up
Worksheet 5-01 Brainstarters 5 Worksheet 5-02 Time and money calculations Worksheet 5-03 Percentages without calculators Skillsheet 5-01 Percentage calculation

1 Daniel receives $14 in pocket money per week. How much does he receive: a in 4 weeks? b per day? c in 10 weeks? d in 2 weeks? e in 3 days? f in 7 weeks? g in 5 days? h in 6 weeks? 2 Simone earns $8 for washing a car. How many cars does she need to wash to earn: a $80? b $16? c $24? d $800? e $160? f at least $100? g at least $500? h at least $250? 3 Find one-and-a-half times each of these amounts: a $6 b $10 c $2 e $20 f $7 g $35 d $8 h $60

4 Evaluate each of the following (correct to the nearest cent, where necessary): a $20 000 52 b $75 000 12 c 0.42 $7500 d 0.17 $9217 e $47 580 26 f 0.47 $31 726 g $39 870 52.18 h $31 520 26.09 i $82 176 12 5 Increase each of these amounts by 10%: a $50 b $80 e $6.80 f $21.20 c $150 g $46 d $12 h $37.70

Just for the record

Why 1 year is not exactly 52 weeks
We know that: 1 year = 365 days or 52 weeks and that: 1 week = 7 days but: 52 7 = 364 days (which is one day short of 365). Actually, one year is dened as the time taken for the Earth to revolve around the Sun once, and this period is 365 days, -- days. 6 hours, 9 minutes and 9.5 seconds, or about 3651 4 As it is not practical to nish each year with a quarter of a day, we save the quarter days over four years to create an extra day every fourth year. This is added as 29 February, and the years in which this happens are called leap years. This means that a year has 365 days, but a leap year has 366 days. -- or 365.25 days: Since a year, on average, has 3651 4 number of weeks in a year = 365.25 7 = 52.1785 52.18 So to convert a yearly salary to a weekly amount, we divide the salary by 52.18. Calculate how many weeks there are in an average month (correct to two decimal places).

Worksheet 5-04 Wages and salaries

Wages and salaries

People who work usually earn a wage or a salary. People who engage in manual or mechanical work (shop assistants, tradespeople, factory workers etc.) usually earn a wage. People engaged in ofce or professional work (engineers, teachers, the police, bank employees etc.) usually earn a salary.

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A wage is income determined by the number of hours an employee works for a xed hourly rate, and is usually paid weekly. Wage earners have the capacity to earn more income by working extra hours (overtime). A salary is income determined as a xed annual amount, which is then paid to the employee in weekly, fortnightly or monthly amounts. Salary earners do not have the capacity to earn extra income through overtime, but can attract other benets, such as a company car, bonus payments or an expense account. For wage calculations: 1 year = 52 weeks For salary calculations: 1 year = 52.18 weeks

Example 1
Leanne earns a salary of $42 400 per year (p.a.). How much does she earn: a each week? b each fortnight? c each month?

Solution

a Weekly income = $42 400 52.18 = $812.571866 = $812.57 b Fortnightly income = $812.57 2 = $1625.14 c Monthly income = $42 400 12 = $3533.3333 = $3533.33

(to the nearest cent) (1 fortnight = 2 weeks)

Example 2
Tonys rst job pays him $7.27 per hour. If he works 38.5 hours each week, calculate his weekly income.

Solution
Weekly income = $7.27 38.5 = $279.895 = $279.90 (to the nearest cent)

Example 3
Mr Long has retired but is prepared to work between 12 hours and 15 hours per week. He sees two jobs that interest him: Job 1 Lab Assistant $11.42 per hour 14 hours per week Job 2 Part-time Gardener $9046 p.a. 15 hours per week

Which job should he take and why?

Solution
Income for job 1 = 11.42 14 = $159.88 per week Income for job 2 = 9046 52.18 = $173.36 per week On the basis of maximum income (both on annual and hourly rates) he should choose job 2.
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Example 4
Sandra earns $54 706 p.a. working 38 hours per week. Sally works 37 hours to earn $982 per week. Who has the higher hourly rate of pay?

Solution
Sandras hourly pay rate = ($54 706 52.18) 38 = $27.59 Sallys hourly pay rate = $982 37 = $26.54 Sandra earns more per hour.

Example 5
Dale earns $4900 per month. Calculate: a Dales annual salary b how much Dale would earn per week.

Solution

a Annual salary = $4900 12 = $58 800

b Weekly earnings = $58 800 52.18 = $1126. 87 (to the nearest cent)

Exercise 5-01
(Throughout this exercise, express your answers correct to the nearest cent where necessary.)
Example 1

1 For a salary of $32 406 p.a., determine the: a weekly income b fortnightly income d hourly income (assuming a working week of 36 hours).

c monthly income

Example 2

2 Find the weekly income for each of the following workers. a Alana, who earns $12.57 per hour and works for 40 hours. b Brian, who earns $18.70 per hour and works for 38.5 hours. c Cheryl, who works 8 hours a day, Monday to Friday, and is paid $13.90 per hour. d Dean, who works Monday to Thursday, 9 hours per day, and is paid $27.50 per hour. 3 Dana earns $8.47 an hour and works for 38 hours each week. Darren earns $9.16 per hour for his 35 hours work. Who earns the most per week and by how much?

Example 3

4 Abdul considers two jobs, one with a salary of $27 640 p.a. and the other with fortnightly income of $1075. Calculate the weekly income for both jobs to determine which pays more. 5 A casual worker is paid $12.70 per hour and works a 36-hour week. Find: a his weekly income b his annual income for working 48 weeks in the year c his average monthly income.

Example 4

6 Who earns the higher hourly rate of pay in each of these pairs of workers, and by how much? a Zane worked 38 hours for $437 pay. Zena worked 35 hours for $383.25 pay. b Mitch worked 40 hours for $584 pay. Max worked 38 hours for $501.60 pay. c Philip worked 30 hours for $294 pay. Peta worked 27 hours for $256.50 pay. d Fiona worked Monday to Friday, 8.5 hours per day, for $595 pay. Frank worked Monday to Thursday, 9 hours per day, for $410.40 pay. e Robert earned $62 760 p.a., working 9:00am to 5:30pm, ve days per week. Rhonda earned $68 620 p.a., working 6:00am to 6:00pm, Monday to Thursday.

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7 If an apprentice earns $9.20 per hour for a 36-hour week, calculate her: a weekly income b annual income for working 48 weeks c average monthly income. 8 For each of the following monthly incomes, calculate: i the annual salary ii the weekly income. a $3500 b $6000 c $8640 d $4800 9 A printer earns $22 per hour, working from 8:00am to 4:30pm, Monday to Friday. Find how much she earns: a each day b each week c each month. 10 Linda earns $12.40 per hour before midnight and $14.60 per hour after midnight. Calculate her income for working these shifts: a 8:00pm to 4:00am b 10:00pm to 6:30am c 7:30pm to 2:30am d 9:30pm to 5:00am 11 Philip earns a salary of $38 720 p.a. and averages 42 hours per week. Find how much Philip earns: a per month b per week c per hour. 12 Andrew works from 8:00am to 4:00pm, Monday to Wednesday, and from 7:30am to 5:30pm, on Thursday and Friday. His weekly wage is $847. Find his hourly rate of pay. 13 Katherine works from 7:00am to 2:30pm, Monday to Friday, at a rate of $13.60 per hour. She also works from 7:00pm to 10:30pm each Tuesday, Thursday and Saturday at a rate of $20.40 per hour. Calculate Katherines weekly wage. 14 Ratha is to be paid fortnightly instead of monthly. His monthly income is $5600. Calculate the amount of Rathas fortnightly income. 15 Pina worked for 320 days in the year, averaging 7.2 hours per day. She earned $14.70 per hour for 80% of the days and $22.05 for the rest. Find her average weekly income for the year.
Example 5

Overtime pay
Employees who work for a wage earn overtime when they are required to work more than their standard number of hours. The maximum number of hours that a worker is expected to complete before he or she earns overtime is determined through either employeremployee negotiations or employerunion negotiations. The rules governing the payment of workers are called enterprise agreements or awards. The two most common rates of overtime pay are: Time-and-a-half = 1.5 normal hourly rate Double time = 2 normal hourly rate

Example 6
Stan works 35 hours at $12.94 per hour and 4 hours overtime at time-and-a-half. Calculate his total earnings.

Solution
Method 1: Normal pay = 35 $12.74 = $445.90 Overtime pay = 4 $12.74 1.5 = $76.44 Total earnings = $445.90 + $76.44 = $522.34

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Method 2: Total number of hours = normal time + overtime (time-and-a-half) = 35 + (4 1.5) = 41 hours total earnings = 41 $12.74 = $522.34

Example 7
Mr Lee pays his employees normal rates on weekdays, time-and-a-half on Saturday and double time on Sunday. Colin works 38 hours (Monday to Friday), 6 hours on Saturday and 4 hours on Sunday. Calculate his total earnings if his normal rate of pay is $14.50 per hour.

Solution
Normal pay (Monday to Friday) Time-and-a-half pay (Saturday) Double time pay (Sunday) Total earnings = 38 $14.50 = $551 = 6 $14.50 1.5 = $130.50 = 4 $14.50 2 = $116 = $551 + $130.50 + $116 = $797.50

Example 8
Last week Rani worked her normal 38 hours, then 4 hours at time-and-a-half and 5 hours at double time. She was paid $909.90 for the week. Find her hourly rate of pay.

Solution
Equivalent number of hours at normal pay = 38 + (4 1.5) + (5 2) = 54 hourly rate of pay = $909.90 54 = $16.85

Example 9
Pablo and Valerie are cadet hamburger chefs. Last week, Pablo worked for 40 hours and Valerie worked for 43 hours. Calculate their respective total earnings based on the following award.
Award for cadet hamburger chefs

Normal rate = $7.80 per hour For the next 3 hours

Normal rate Time-and-a-half Double time

For 0 to 38 hours worked For each additional hour after that

Solution
Total earnings for Pablo (40 hours): Normal pay = 38 $7.80 = $296.40 Time-and-a-half pay = 2 $7.80 1.5 = $23.40 total earnings = $296.40 + $23.40 = $319.80 Total earnings for Valerie (43 hours): Normal pay = 38 $7.80 = $296.40 Time-and-a-half pay = 3 $7.80 1.5 = $35.10 Double time pay = 2 $7.80 2 = $31.20 total earnings = $296.40 + $35.10 + $31.20 = $362.70

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Exercise 5-02
1 Using an hourly rate of $12.80, calculate the total earnings for working: a 40 hours at normal rates and 2 hours at time-and-a-half b 36 hours of normal rates, 6 hours at time-and-a-half and 4 hours at double time c 38 hours at normal rates and 10 hours at double time d 37.5 hours at normal rates and 4.5 hours at time-and-a-half e 36 hours at normal rates, 5.5 hours at time-and-a-half and 6 hours at double time f 36.5 hours at normal rates, 6.5 hours at time-and-a-half and 4.5 hours at double time. 2
Nuts and bolts machinists enterprise agreement
Example 6

Example 7

Normal rate Time-and-a-half Double time

Applies Monday to Friday For any hours worked on Saturday For any hours worked on Sunday

Use the table above to calculate the total earnings for each employee below. Hours worked Name a b c d e f Alan Douglas Vic Hawkes Dalleen Jones Tarek Mifsud Ivan Vitsic Ian Hackett Hourly rate $9.60 $23.30 $18.60 $20.00 $30.00 $16.40 MonFri 36 38 38 40 34 36 Sat 4 0 4 8 4 4.5 Sun 8 6 2.5 0 6 6

3 Find the equivalent number of hours worked at normal pay in each case. a 36 hours at normal rates and 5 hours at time-and-a-half b 38 hours at normal rates and 4 hours at double time c 37 hours at normal rates and 6 hours at time-and-a-half d 10 hours at time-and-a-half and 3 hours at double time e 8.5 hours at time-and-a-half f 8 hours at normal rates, 2 hours at time-and-a-half and 2 hours at double time. 4 Calculate the hourly rate of pay, correct to the nearest cent in each case. a Sarah earns $862.40 by working 36 hours at normal rates and 4 hours at double time. b Fiona earns $969.60 by working 37 hours at normal rates, 3 hours at time-and-a-half and 4 hours at double time. c Darren earns $240 by working 6 hours at normal rates and 4 hours at double time. d Stacey earns $163.80 by working 4 hours at time-and-a-half and 3 hours at double time e Philip earns $727.60 by working 30 hours at normal rates, 5 hours at time-and-a-half and 3 hours at double time. f Tara earns $76.50 by working 7 hours at normal rates and 1.5 hours at time-and-a-half.
Example 8

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Example 9

Weekly award Normal rate = $14.60 per hour

Normal rate Time-and-a-half Double time

For 0 to 36 hours For next 4 hours For each hour after that

Use the award information above to calculate the total weekly earnings for each employee listed below. a Alan, who works 40 hours b Frank, who works 27 hours c Meredith, who works 34.5 hours d Bob, who works 42 hours e Sophie, who works 38.5 hours f Daniel, who works 44.5 hours 6 At the Fone U call centre, employees are paid $15.80 per hour for their rst 8 hours each day and time-and-a-half for any hours worked after that. Calculate the total daily earnings for each of the following workers. a Ali, who works from 2:00pm to 8:00pm b Kerry, who works from 7:00am to 2:00pm c Michael, who works from 3:30pm to 10:30pm d Milena, who works from 8:30am to 10:30pm e Linda, who works from 7:40am to 8:10pm f William, who works from 8:15am to 7:00pm

Using technology
Spreadsheet activity: Calculating incomes
Spreadsheets can be used to calculate gross income, tax and net income. The award for all workers at the U-Wear It Shoe Company is as follows: normal rate for 038 hours worked time-and-a-half for the next 4 hours worked double time for any hours worked after that. The following people are employed by U-Wear It Shoes. Their pay rates and the hours they worked last week are shown.
Breakdown of pay rates

Name Robert Jones Amanda Wang Pete Pha Zlatko Bankovic Chris Chan Pauline Benson Doug Barrett Mai Ngo

Hourly pay $22.50 $18.40 $10.40 $13.90 $9.50 $9.50 $9.50 $9.50

Hours worked 40 36 42 44 41 42 45 43.5

Normal 38 36

Time-anda-half 2 0

Double time 0 0

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1 Copy and complete the table above. 2 Set up your spreadsheet as follows:
A 18 19 26 B Name Robert Jones C D E F G H Gross wage I Tax J Net wage Hourly Hours Normal Time-and- Double pay worked a-half $22.50 40 38 2 0

Spreadsheet 5-01 Calculating incomes

Enter labels in cells B18, C18, D18, , J18 as shown. Enter names in column B. Enter hourly pay rates in column C. Enter total hours worked in column D. Enter normal hours in column E. Enter time-and-a-half hours in column F. Enter double time hours in column G. Enter the formula =C2*(E2+1.5*F2+2*G2) in cell H19. Copy the formula down to cell H26. Print the spreadsheet and paste it in your workbook.

3 If all the employees have tax deducted at a at rate of 24c per dollar, modify your spreadsheet to show the amount of tax deducted (in column I) and the net wage (in column J). Assume that the employees have no other deductions.

Skillbank 5
Everyday percentages
1 To nd 10% of a money amount, just move the decimal point one place to the left, then round, if necessary. Examine these examples. a Find 10% of $150. 10% $150 = 10% $150.00 = $15.000 = $15.00 b Find 10% of $1256.80. 10% $1256.80 = $125.680 = $125.68 c Find 10% of $8.56. 10% $8.56 = $0.856 = $0.86 = 86c d Find 10% of 76c. 10% 76c = 10% $0.76 = $0.076 = $0.08 (rounded to the nearest cent) = 8c 2 Find 10% of each of the following amounts. a $195 b $75 e $37.64 f $216.70 i 48c j 97c m $31.54 n $1.07 c g k o $874 $9.25 $1527.60 $4.26 d h l p $202 $8.99 $82.67 $24 317.60
SkillTest 5-01 Everyday percentages

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3 To nd 20% of an amount, rst nd 10% then double it (rounding the nal answer). Examine these examples. a Find 20% of $1250. 10% $1250.00 = $125.000 = $125.00 20% = 2 $125 = $250 b Find 20% of $876.40 10% $876.40= $87.640 = $87.64 20% = 2 $87.64 = $175.28 c Find 20% of $38.56 10% $38.56 = $3.856 = $3.86 20% = 2 $3.86 = $7.72 d Find 20% of 94c. 10% 94c = 10% $0.94 = $0.094 = 9.4c 20% = 2 9.4 = 18.8 = 19c 4 Find 20% of each of these amounts. a $620 b $2450 e $502 f $12 750 i $7.50 j $8.16 c $8.60 g $962 k $25.40 d $38.60 h 38c l $320

5 To nd 5% of an amount, just nd 10%, then halve the answer (rounding the nal answer). Examine these examples: a Find 5% of $76. 10% $76 = $7.60 5% = $7.60 2 = $3.80 b Find 5% of $180. 10% $180 = $18 5% = $18 2 = $9 c Find 5% of $3250. 10% $3250 = $325 5% = $325 2 = $162.50 d Find 5% of 57c. 10% 57c = $0.057 = $0.06 5% = $0.06 2 = $0.03 or 3c 6 Find 5% of each of these amounts. a $2000 b $50 e $36.80 f $72.40 i $9.65 j $38.50 c $12 g 80c k $7.99 d $27 h 13c l $857.60

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Working mathematically
Communicating and reasoning: Positions vacant
You will need: the employment papers of a newspaper. 1 a Select ve advertisements from the employment pages of a newspaper and paste them in your book. b For each advertisement, write: i a brief job description and whether the job is full-time or part-time, permanent or casual ii whether a salary or wage is paid, and how much iii whether there are any other payments, incentives, or benets that may come with the job. 2 Use the advertisement below to answer the following questions: a How many hours would a full-time COURIERS permanent Full-time Permanent Positions employee be Baulkham Hills, Lidcombe, Pymble, Five Dock, Wahroonga, Dural and Hornsby expected to work Part-time Permanent Positions in a week? Thomson 21 hours per week; shifts start at approximately 6:30am b Explain what a Wetherill Park 20 hours per week; shifts start at approximately 7:30am xed term Fixed-term Positions position is. PART-TIME c The advertisement Regents Park until 14 June 2002; 20 hours per week; shifts start at does not give wage approximately 6:00am Thomson until 10 June 2002; 24 hours per week; shifts start at rates. Can you give approximately 6:30am a reason for this?
Regents Park North Bank Camperdown Blacktown Lane Cove FULL-TIME until 10 August 2002 until 19 June 2002 until 22 October 2002 until 31 May 2002

All full-time positions are from Monday to Friday, 36.75 hours per week. Shifts start at approximately 6:00am. Essential Conditions/Requirements:

Must hold a current unrestricted motorcycle licence

3 Using the wage rate in the classied advertisement on the right, how much would a glasscutter earn in one year if he is expected to work 35 hours per week?

Glasscutters
$17p/h Exp. Cutters req. in Gladstone for immediate start. Must be able to cut up to 10 mm, be familiar with cutting machinery and have a minimum 2 years exp.

4 What is the pay offered in this advertisement?

Financial Services
$34K$36K + Super CBD

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Other forms of income

Worksheet 5-05 Earning money Skillsheet 5-01 Percentage calculations

Not all income is obtained through the payment of wages or salaries.

Commission and piecework

Commission is a common income-earning method for salespeople, or for agents of a business or company. A commission is a percentage of the value of goods sold. It is paid to the person who sold the goods. A xed amount, called a retainer, may also be paid. Piecework is income earned according to the number of tasks a person completes or the number of objects he or she makes. Payment is not dependent on the time taken for the work.

Example 10
1 Anita is paid a commission of 3% on the value of goods she sells. How much will Anita earn if she sells goods to the value of $28 600 in one week?

Solution

Earnings = 3% of $28 600 = 0.03 28 600 = $858 Anita earns $858.

2 A car salesman is paid a weekly retainer of $260, plus 3.5% of the value of cars he sells. Calculate his gross income if he sells cars worth $98 000 in total.

Solution

Gross income = $260 + 3.5% of $98 000 = $260 + 0.035 $98 000 = $260 + $3430 = $3690 the salespersons gross income is $3690 that week.

Example 11
1 Dan is paid a commission of 4.5% of the value of the book sales he makes in excess of $5000. In one week Dan sells books to the value of $37 427. Calculate his income for that week.

Solution

Amount in excess of $5000 = $37 427 $5000 = $32 427 Dans income = 4.5% of $32 427 = $1459.215 $1459.22 (to the nearest cent) Dans income is $1459.22.

2 A real estate salesperson is paid according to the following rates: 2% on the rst $100 000 of property sold, then 1.5% on any value thereafter. Calculate the commission the salesperson earned by selling property valued at $380 000.

Solution

Amount in excess of $100 000 = $380 000 $100 000 = $280 000 Commission = 2% of $100 000 + 1.5% of $280 000 = 0.02 $100 000 + 0.015 $280 000 = $2000 + $4200 = $6200 the real estate salesperson earned $6200.
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Example 12
Ricky earns $9.80 for each car he washes. Calculate his income if he washes 16 cars.

Solution
Income = 16 $9.80 = $156.80 Ricky earned $156.80.

Example 13
Sue earns $245 for each garden she designs. How many gardens must Sue design to earn over $50 000?

Solution
Number of gardens = $50 000 $245 = 204.081 632 7 205 Sue must design at least 205 gardens to earn over $50 000.

Exercise 5-03
1 Calculate (to the nearest cent), the value of 4.5% commission for these sales totals: a $32 000 b $27 000 c $9400 2 Jenny, a real estate agent, is paid a monthly retainer of $800 and a commission of 1.5% of the value of the properties she sells. Her sales in January were $678 600. Calculate Jennys income for January. 3 Consider these two salespeople and their methods of payment: Perry: $250 retainer and 4.5% of the value of goods sold Amy: nil retainer and 7.5% of the value of goods sold Calculate the income earned by both Perry and Amy if they each sell goods worth: a $10 000 b $24 000 c $30 000 d $45 000 4 Lara earns 5% commission on the sale of thoroughbred horses. Last year she sold horses worth $1 640 000. Calculate: a Laras income last year b Laras average monthly income last year (to the nearest ten dollars). 5 Pauline is paid 5.5% of the value of sales she makes in excess of $6000. Find Paulines income for selling goods worth: a $9000 b $16 000 c $29 400 d $32 000 e $55 750 f $64 200 g $105 750 h $178 000 i $206 000 6 Renee is paid 8% commission on the value of goods she sells over $2000. Calculate Renees income if she sells goods to the value of $18 850 in one week. 7 Real estate salespeople employed by a particular company earn commission on sales at the following rates: 5% on the rst $100 000 of value 2% on any value thereafter.
Example 11 Example 10

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Find the commission earned by selling properties valued at: a $150 000 b $275 000

c $329 500

8 A car salesperson is paid 5% of the value of used cars she sells and 3.5% of the value of new cars. What income does she earn by selling new cars worth $78 400 and used cars worth $36 200? 9 Real estate salespeople employed by a particular company earn the following rates of commission: 5% on the rst $100 000 3% on the next $50 000 2% on any value thereafter. Work out the commission earned by selling property valued at: a $240 000 b $316 000 c $395 000 10 Hanna earns 4.5% commission on all her sales. Find the total value of her sales if Hannas income is: a $820 b $1570 c $2800 11 William is paid commission at the rate of 2.5% of sales above $3000. Find the total value of his sales if Williams income is: a $650 b $1200 c $2000 12 Mirvat is paid a monthly retainer of $800 plus a commission of 3.5% of her monthly sales. Find the total value of her monthly sales if last month she was paid: a $3400 b $4270 c $5500
Example 12

13 Calculate the income for the following amounts of piecework: a assembling 390 boxes at 42 cents per box b delivering 900 pamphlets at 10 cents per pamphlet c polishing 16 cars at $11.75 per car d mowing nine lawns at $34.20 per lawn e addressing 852 envelopes at 11.4 cents per envelope 14 Fiona earns 85 cents for each toy she assembles. a How much does she earn for assembling: i 94 toys? ii 146 toys? iii 203 toys? iv 427 toys? b Last week Fiona earned $459. How many toys did she assemble? c Find the number of toys Fiona must assemble to earn (at least) the following amounts: i $200 ii $360 iii $475 iv $620 15 A process worker is paid 28 cents per article assembled up to 500 articles, then 35 cents per article assembled after that. Calculate the total income earned from assembling each of the following numbers of articles: a 487 b 506 c 621 d 1406 e 3215 16 Kevin works at the SuperGlo Hand Car Wash. He earns $3.50 per car for a wash only and $9.50 per car for a wash and polish. His job sheet for last week appears on page 145. Calculate: a Kevins total earnings for the week b Kevins average daily earnings c Kevins average hourly rate of pay if he worked for 8.5 hours each day. (Write your answer to the nearest ten cents.)

Example 13

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Day

Wash only

Wash and polish

(number of cars) (number of cars) 11 12 7 16 18 10 4 8 10 3 13 12

Monday Tuesday Wednesday Thursday Friday Saturday

17 At U-Beaut Phone Marketing, Danielle is paid $8.60 for each sale she makes. On average, she makes one sale every 12 calls. a Find Danielles expected total earnings if she makes: i 72 calls ii 120 calls iii 156 calls iv 240 calls v 312 calls vi 522 calls b Last week Danielle earned $989. How many calls do you think she made? c Find the number of calls Danielle could be expected to make to earn (at least) the following amounts:

i $100

ii $300

iii $500

iv $1200

18 The step graph below shows the rate of payment a fruit picker receives per kilogram of fruit picked.
Fruit pickers income 46 40 Cents per kilogram 34 28 22 16 0 20 40 60 80 100 120 140 160 180 Number of kilograms

a Calculate the income earned from picking: i 30 kg ii 60 kg iii 80 kg v 140 kg vi 143 kg vii 150 kg

iv 130 kg viii 166 kg

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b Calculate Ginos total earnings for picking fruit last week if he picked the following quantities: Day Mass picked (kg) Mon 127 Tues 106 Wed 97 Thurs 42 Fri 151 Sat 83 Sun 54

19 Jockeys are paid $100 for every ride they have in a race and they also receive 5% of the prizemoney their horses win. For each jockey whose yearly results appear below, calculate: i the annual income ii the average weekly income (use 52 weeks = 1 year).
Jockey Number of rides Prizemoney won by horses

a b c d e f

Daryl Olivier Chris Munster Jim Hopalong George Ryan Alan Robins Corey Black

476 221 336 624 596 547

$10 342 700 $397 516 $7 516 215 $3 100 520 $1 124 670 $8 316 215

Spreadsheet 5-02 Calculating commissions

Using technology
Spreadsheet activity: Calculating commissions
Spreadsheets can be used to calculate the pay of salespeople employed under different rates of commission. 1 Consider the following pay arrangements of three salespeople: Jack earns a at rate of 4% of all sales.
-- % of all sales, plus a retainer of $110. Juliana earns 31 2

Jeff earns 5.2% of all sales over $5000, plus a retainer of $75. Set up your spreadsheet as follows:
A 20 21 22 23 B Name Jack Juliana Jeff =C21 =C21 C D E F G Income =(D21*C21)+E21 =(D22*C22)+E22 =if(C23>F23,E23*(C23F23),E23) Value Commission Retainer Commission of sales rate earned 0.04 0.035 0.052 0 110 75 0 0 5000

2 Enter each of the following sales values in cell C21, and write the income for Jack, Juliana and Jeff that is shown in column G in each case. a $2400 b $3600 c $5400 d $10 000 e $20 000 f $32 000 3 Determine the minimum value of sales that Jeff must make to earn more than the others.

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Bonuses, allowances and holiday loadings

A bonus is an extra amount of money paid to employees who produce work of high quality or volume. An incentive is another type of bonus, involving an amount of money or a benet that is given to employees to encourage an increase in effort that may result in greater output, an improvement in quality or the meeting of tight deadlines. An allowance is an amount of money paid to an employee to meet expenses. Examples include travel expenses, meal allowances and wet-weather allowances. Annual leave loading or holiday loading is extra pay given during annual leave (holidays). It is paid at the rate of 17.5% of four weeks normal pay.

Worksheet 5-05 Earning money

Example 14
After a successful year, a manager gave each of his employees a 2.5% bonus on their annual income. Find: a the bonus received by Corey, who earns $1327.50 per week b the annual income of Diane, whose bonus amounted to $1375.

Solution
a Since the bonus is paid on annual income, we need to calculate annual income from the weekly wage. Coreys annual income = $1327.50 52 = $69 030 Coreys bonus = 2.5% of $69 030 = 2.5 100 $69 030 = $1725.75 Coreys bonus is $1725.75. b

Bonus = 2.5% of annual income 2.5% = $1375 1% =

$1375 -------------2.5

= $550 100% = $550 100 = $55 000 Dianes annual income is $55 000.

Example 15
As a casual restaurant worker, Stef earns $14.80 per hour, plus a uniform allowance of $10.50 per week and a travel allowance of 26 cents per kilometre when using her own car to make deliveries. In the last fortnight, Stef has worked 42 hours and travelled 246 km in her own car making deliveries. Find her total earnings for the fortnight.

Solution
Wage earnings Uniform allowance Travel allowance Fortnightly earnings = 42 $14.80 = $621.60 = 2 $10.50 = $21 = 246 $0.26 = $63.96 = $621.60 + $21 + $63.96 = $706.56. Stefs earnings for the fortnight are $706.56

Example 16
Harry works as a rigger and is paid $19.40 per hour. He earns an extra $3.80 per hour when working at a height above 20 metres. Find Harrys weekly income when he works for 42 hours, 19 hours of which were at a height above 20 metres.

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Solution
Harrys 42 hours of work is made up of 23 hours at heights below 20 m and 19 hours at heights above 20 m. Method 1: Harrys income = 23 $19.40 + 19 ($19.40 + $3.80) = $446.2 + $440.8 = $887 Method 2: Harrys income = 42 $19.40 + 19 $3.80 = $814.80 + $72.20 = $887

Example 17
-- % holiday Before going on his annual holidays, Ken received 4 weeks normal pay plus a 171 2

(annual leave) loading for the 4 weeks. If Ken earns a salary of $40 840 p.a., nd: a his normal weekly income b the holiday loading he received c his total pay for the four-week holiday.

Solution

a Weekly income = $40 840 52.18 = $782.6753545 = $782.68 (to the nearest cent) b Holiday loading on 4 weeks pay = 17.5 100 (4 $782.68) = $547.88 c Total holiday pay = (4 $782.68) + $547.88 = $3130.72 + $547.88 = $3678.60

Exercise 5-04
Example 14

1 Find how much a 4.75% annual bonus would be for each of these incomes: a $42 400 p.a. b $65 600 p.a. c $1095 per week d $794 per week e $4240 per month f $6750 per month g $3156 per fortnight h $2946 per fortnight 2 A home care nurse earns $18.20 per hour, plus a uniform allowance of $8.60 per week, and a travel allowance of 32 cents per km. Find the fortnightly income she would earn in each case below. a 52 hours worked, 188 km travelled b 60 hours worked, 400 km travelled c 74 hours worked, 512 km travelled d 80 hours worked, 218 km travelled 3 Anton is a travelling salesman who uses his own car. He is paid $17.80 per hour, plus $147.50 per week for depreciation on his car, and 22.4 cents per kilometre he travels. Find his weekly income, if he: a worked 36 hours and travelled 2151 km b worked 42 hours and travelled 1876 km.

Example 15

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4 Joe works for the Road Transport Authority with a road maintenance team. He earns $16.40 per hour in dry conditions and an extra $2.20 per hour in wet conditions. Calculate Joes total earnings for the following amounts of work: a 12 hours in dry conditions and 26 hours in wet conditions b 30 hours in wet conditions c 40 hours, 16 of which were in wet conditions d 42.5 hours, including 11.5 hours in the wet. 5 Last week, Laura earned $703 for working 38 hours in normal (clean) conditions. When Laura works in dirty conditions, she earns an extra $2.90 per hour. a Calculate Lauras normal hourly rate of pay. b Find Lauras total income from working 20 hours in clean conditions and 18 hours in dirty conditions. c In a typical week, Laura works 30 hours in clean conditions and 8 hours in dirty conditions. Find Lauras average annual income based on this. 6 Each of the following employees is about to begin a four-week holiday. They will receive the -- % holiday loading on the 4 weeks pay. Find the equivalent of 4 weeks normal pay plus a 17 1 2 total holiday pay for each of these people: a Elva, who earns $720 per week b Jamie, who earns $964.20 per week c Mavis, who earns $2170 per fortnight d David, who earns $3000 per fortnight e Samantha, who earns $6180 per month f Elaine, who earns $48 160 p.a. 7 Frank works 40 hours a week and is paid $13.40 per hour. Calculate: a Franks weekly income -- % on 4 weeks pay b the holiday loading of 17 1 2 c Franks four-week holiday pay. 8 Astra is the manager of a jewellery shop. Her salary is $52 000 p.a. Calculate: a Astras fortnightly pay b the holiday loading Astra would receive when she takes her 4 weeks annual leave c her total holiday pay. 9 Jamie, a storeman, works from 8:00am to 4:00pm, Monday to Friday. Jamies rate of pay is $15.80 per hour. Calculate: a Jamies weekly wage b Jamies holiday pay for 4 weeks (including holiday loading). 10 Brodie works from 7:00am to 2:00pm each day, Monday to Friday, and earns $16.36 per hour. On Monday, Wednesday and Friday only, he works in dirty conditions between 2:00pm and 5:30pm and receives an additional $3.84 per hour. Calculate Brodies total weekly earnings. 11 Zlatko, a construction supervisor, has signed a contract worth $87 000 to ensure that a factory -- % of his contract for each day the job is is built by June 30. He will receive a bonus of 11 2 completed ahead of time. How much will Zlatko earn if the factory is completed on June 22? 12 Each day, Kay, a re control ofcer, earns $148.60 plus a meal allowance of $8.40, a uniform allowance of $4.80, and a travel allowance of $12.60. She works 6 days per week. Calculate: a Kays weekly pay: i without allowances ii with allowances
-- % holiday loading on 3 weeks pay. b Kays holiday pay for 3 weeks, including the 171 2

Example 16

Example 17

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Gross income and net income

Worksheet 5-06 Pay day

The total amount a person earns is called his or her gross income or gross pay. Most income earners have a variety of deductions made against their gross income before they receive it, such as union fees, insurance payments, superannuation payments and health fund payments. Income tax is also regularly deducted from a persons pay. This is called a PAYG (Pay-As-You-Go) system. The amount of income left after the deductions is called net income. Net income = gross income total deductions

Example 18
Paul earns a gross income of $784.60 per week. His deductions are $147.20 tax, $19.60 for private health insurance and $27.90 for superannuation. Calculate: a Pauls net income b the percentage of Pauls gross income that is deducted.

Solution

a Net income = $784.60 $(147.20 + 19.60 + 27.90) = $784.60 $194.70 = $589.90 b Percentage deducted =
194.7 -----------784.6

100%

= 24.81519% 24.8%

Example 19
Justine earns a salary of $34 800 p.a. Each fortnight she has deductions of $28.70 for health insurance and $91.60 for superannuation taken from her gross income. She also pays tax at the rate of 21.2 cents in the dollar. Calculate: a Justines fortnightly gross income b the amount of tax Justine pays c Justines net income for the fortnight.

Solution

a Gross income = ($34 800 52.18) 2 = $1333.844385 = $1333.84 (to the nearest cent) b Method 1: Tax rate = 21.2 cents in the dollar tax deducted = 21.2c 1333.84 = 28 277.408c = $282.77408 $282.77 Method 2: Tax rate of 21.2 cents in the dollar is the same as a tax rate of 21.2%. Tax deducted = 21.2% of $1333.84 = 21.2 100 $1333.84 $282.77 c Justines net income = $1333.84 $(282.77 + 28.70 + 91.60) = $930.77

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Exercise 5-05
1 Calculate the net income in each of the following cases: a Gross income = $2160, tax = $676, other deductions = $327.80 b Gross income = $1385, tax = $429.60, other deductions = $107.60 c Gross income = $465, tax = $77.90, other deductions = $21.60 d Gross income = $2740, tax = $1127.90, other deductions = $407 e Gross income = $1495.80, tax = $627.60, other deductions = $429.60 2 For each part of Question 1, express the net income as a percentage of the gross income net income ( ------------------------------- 100%). Give your answers correct to one decimal place. gross income 3 For each of the following pay slips, calculate: i the gross income ii the total deductions iii the net income. a
EMPLOYEE: JANICE HALL HOURS WORKED HOURLY PAY RATE: DEDUCTIONS
Example 18

$16.80

Normal Time-and-a-half Double time

38 0 0

Tax: $153.20
GROSS WEEKLY INCOME TOTAL DEDUCTIONS NET WEEKLY INCOME

Other: $124.60

EMPLOYEE: IAN MENZIES HOURS WORKED

HOURLY PAY RATE: DEDUCTIONS

$12.50

Normal Time-and-a-half Double time

39 2 0

Tax: $167.80
GROSS WEEKLY INCOME TOTAL DEDUCTIONS NET WEEKLY INCOME

Other: $229.10

EMPLOYEE: TONY OFLYNN HOURS WORKED

HOURLY PAY RATE: DEDUCTIONS

$22.80

Normal Time-and-a-half Double time

37 4 2

Tax: $375.10
GROSS WEEKLY INCOME TOTAL DEDUCTIONS NET WEEKLY INCOME

Other: $84.50

4 Bryce earns a salary of $54 780 p.a. He pays 36.4% of his gross income in tax, and pays other deductions amounting to $275 per fortnight. Calculate his: a gross fortnightly pay b tax c net fortnightly pay. 5 Bianca earns $18 420 p.a. and pays tax at the rate of 15.6 cents in the dollar. She has private health insurance ($12.70 per week) and superannuation ($16.50 per week) deducted from her weekly gross income. Calculate her: a gross weekly income b tax c net weekly income.
Example 19

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6 Jodie earns a gross fortnightly pay of $1027.60. Apart from tax, she has the following deductions: superannuation ($26.80), health insurance ($21.60), union fees ($5.20) and savings plan ($65). a If Jodies net fortnightly pay is $657.30, nd how much tax is taken out. b Express the tax she pays as a percentage of her gross income (correct to one decimal place). 7 For each employee in the table below, calculate: i the tax payable ii other deductions
Name Salary (p.a.) Pay period Tax rate

iii the net income.

Other deductions

a b c d e f

Alanna Betty Christine Dennis Eric Frank

$32 489 $70 465 $18 690 $47 650 $82 300 $94 560

Weekly Weekly Fortnightly Fortnightly Monthly Monthly

22.4% 30.4% 16.2% 28.6% 30.9% 31.2%

14.4% 12.4% 23.4% 18.4% 11.5% 8.7%

Budgeting
A budget is a plan for managing income. When we are running a household (or a business), it is important that we dont spend more than we have. A budget has two parts: income, including wages, salary, commission, pension, interest from investments, and so on expenses, including rent, mortgage, electricity, water, clothing, groceries, entertainment, and so on. A budget is balanced if total expenses are equal to total income.

Example 20
Spreadsheet 5-03 Budgeting

Angelas weekly budget is shown below.

Angelas weekly budget Income Expenses

Earnings

$655

Rent Groceries Loan Magazines Petrol Bills Clothes Entertainment Savings

$180 $70 $50 $18 $35 $40 $50 $80

Total

$655

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a b c d

What is the total of Angelas expenses (without savings)? To balance her budget, how much will Angela need to save each week? Which of Angelas expenses are xed (or do not change)? What percentage of her income is rent?

Solution
a Total expenses without savings = $180 + $70 + $50 + $18 + $35 + $40 + $50 + $80 = $523 b Savings = $655 $523 = $132 c Fixed expenses are rent ($180) and the loan ($50) d Percentage rent = = 27.5%
180 -------655

100% (correct to one decimal place)

Exercise 5-06
1 Joshua, an apprentice mechanic, clears $372 per week. His income and expenses are shown in this table. a What percentage of Joshuas income is spent on fares? b How much board will he pay in one year? c Calculate the amount Joshua will need to save each week to make his budget balance. d Joshua needs $1500 for a holiday. How long will it take for him to save this amount?
Example 20

Joshuas weekly budget Income Expenses Worksheet 5-07 Budget grid Worksheet 5-08 Budgeting scenarios

Earnings $372

Board Fares Lunches Tools Mobile phone Clothes Entertainment Savings

$50 $38 $40 $60 $25 $40 $55 $372

Total 2 Sandy works in the city and shares a house with three friends. a The rent is shared equally by Sandy and her friends. What is the total cost of their accommodation per week? b What percentage of her income does Sandy spend on:

$372

Sandys weekly budget Income Expenses

Earnings $480

i clothes? ii rent? c How much does Sandy save each week?

Total $480

Rent Electricity Telephone Food Fares Clothes Entertainment Savings

$105 $10 $55 $50 $25 $120 $80 $480

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3 Lisas gross weekly income is $850. Tax and other deductions amount to $356. Her expenses are: groceries $100, household bills $65, car $45, clothes $80 and entertainment $90. a Copy and complete Lisas budget table. b Lisas budget does not include an amount for accommodation. State a possible reason for this.

Lisas weekly budget Income Expenses

Earnings

4 Shannyn, who lives at home, has a net weekly income of $350. Her weekly expenses are: Total board $50, fares $35, clothes $80, magazines $25, food $30 and entertainment $40. a Construct a budget table for Shannyn (showing her income and expenses). b How much will Shannyn have left over for savings each week? c What percentage of Shannyns income is spent on: i magazines? ii entertainment? d Shannyn is planning an overseas trip, which will cost $4800. Will she have saved enough to pay for the trip in one year? e Which expenses could Shannyn adjust if she wanted to increase her weekly savings to $120? 5 Gregs net weekly income is $385. He earns another $162.50 for casual work on weekends. Gregs weekly expenses are: rent $55, petrol $45, car loan $75, food $40, clothes and entertainment $80. a What is Gregs total weekly income? b How much will Greg be able to save in: i 1 week? ii 1 year? c Greg decides to stop working weekends. How much can he now save each week?

Groceries Household bills Car Clothes Entertainment Savings

$65

Best buys
An important everyday skill when shopping for goods is calculating which brand or which size of container is the best buy. This can be done by comparing either: the amounts of product per dollar for a range of items, or the costs per unit (or for one) for a range of items.

Example 21
By calculating the amount of product per dollar of each of the given brands, determine which of the following brands of corn chips is the best value for money: Cruncho brand, 50 g for $1.02 Hombre brand, 125 g for $2.20 Mexicana brand, 200 g for $4.81

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Solution
50 g Cruncho: amount per $ = -----------$1.02 = 49 g / $ 125 g Hombre: amount per $ = -----------$2.29 = 56.8 g / $ 200 g Mexicana: amount per $ = ------------$4.80 = 41.7 g / $ The best buy is the brand with the greatest amount of corn chips for each dollar spent. the Hombre brand is the best buy.

Example 22
By nding the cost per unit, determine which brand of coffee is the best buy: Expresso brand, 200 g for $6.10 Kenyan brand, 375 g for $11.17 Americana brand, 425 g for $12.60

Solution
Calculate the cost of 1 g of each brand, expressing your answer in cents. Cost of 1 g of Expresso brand = $6.10 200 = 610c 200 = 3.05c Cost of 1 g of Kenyan brand = $11.17 375 = 1117c 375 = 2.98c Cost of 1 g of Americana brand = $12.60 425 = 1260c 425 = 2.96c The best buy is the brand that is cheapest per gram. the Americana brand is the best buy.

Exercise 5-07
1 By calculating the amount per dollar for each of these items, determine the best buy in each pair. a Item A: 250 g for $3.10 Item B: 350 g for $4.20 b Item A: 800 g for $7.40 Item B: 1.3 kg for $9.50 c Item A: 4.5 m for $15.60 Item B: 4 m for $14 2 Calculate the cost per unit of each of these items to determine the best buy in each pair. a Item A: 1.25 L for $1.35 Item B: 1.5 L for $1.65 b Item A: 150 g for $1.70 Item B: 225 g for $2.65 c Item A: 4 m for $10.80 Item B: 7 m for $19.95
Example 21

Example 22

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3 Choose the best buy from each of the following groups of brands.
Brand W Brand X Brand Y Brand Z

a b c d

500 g for $1.89 200 g for 76c 250 mL for $1 50 mL for 17c

100 g for 39c 1 L for $2

1 kg for $3.74 200 mL for 70c

750 g for $5.20 400 g for $2.40 250 g for $1.70 2 kg for $12.20 300 g for $3.20 85 g for $1 125 g for $1.40 240 g for $2.85

4 Which of the following chocolate ice creams represents the best value for money? A Exotica Chocolate, 500 mL for $3.80 B Rocky Choc, 750 mL for $5.80 C Chocs Crunch, 1 L for $6.95 D Chocolate Swirl, 425 mL for $2.90 5 Petor, Peta and Pam all bought new car batteries: Petors cost $75 and lasted 500 days. Petas cost $92 and lasted 650 days. Pams cost $60 and lasted 1 year. Which car battery was the best buy? 6 Find the cost per unit to determine which is the better offer in each case. a Premium mince: i 600 g for $3.80 ii 450 g for $2.35 b Spring water: i 300 mL for 84c ii 420 mL for $1.20 c Biscuits: i 350 g for $3.20 ii 500 g for $4.90 d Packaged nuts: i 450 g for $7.60 ii 750 g for $11.90 e Coffee: i 150 g for $5.65 ii 60 g for $2.30

Discounts
Sometimes you can save money by buying goods at discounted prices.

Example 23
A CD player usually sells for $295, but a shop offers it at a 12% discount. Calculate the sale price of the item.

Solution
Method 1: Marked price = $295 Discount = 12% of $295
12 - $295 = --------

Method 2: Sale price = 88% of $295

88 - $295 = --------

= $35.40 sale price = $295 $35.40 = $259.60

100

= $259.60

100

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Example 24
An electronics store is selling a burglar alarm, usually costing $500, for $427. What discount, as a percentage of the marked price, is being offered?

Solution
Marked price = $500 Sale price = $427 Discount = $73
73 - 100% Percentage discount = --------

= 14.6% a 14.6% discount is being offered.

500

Example 25
-- % discount. What was the original price? A lounge suite costs $880 after a 121 2

Solution

Sale price = $880 -- % = 12.5% Discount = 12 1 $880 = 87.5% of the original price $880 1% = ----------87.5 = $10.057 143 100% = 1005.714 original price = $1006
2

(since 100% 12.5% = 87.5%)

Spreadsheet 5-04 Percentage change (unitary method)

(rounded to the nearest dollar)

Example 26
Lloyds Department Stores are having a 20% off all prices half-yearly sale. If paying by cash, customers receive a further 10% discount. Joanne buys goods to the value of $550. a Joanne decided to pay by cash. How much will she have to pay? b What is the total discount Joanne receives (to the nearest 5 cents)? c What is Joannes percentage discount (on the original cost)?

Solution

a 20% discount = 0.2 $550 = $110 sale price = $550 $110 = $440 10% discount (for paying cash) = 0.1 $440 = $44 nal sale price = $440 $44 = $396

b Total discount = $550 $396 = $154 c Percentage discount =

154 -------550

100%

= 28%

Exercise 5-08
(Round your answers to two decimal places where necessary.) 1 Find the sale price for each of these: a marked price = $207 b marked price = $376 discount = 12% discount = 20%
Example 23

c marked price = $4 discount = 16%

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Worksheet 5-09 Discounts and best buys Worksheet 5-03 Percentages without calculators

2 Choose the correct answer from those given in each case. a The selling price of a tracksuit marked at $185, now discounted by 30%, is which of the following? A $155 B $129.50 C $55.50 D $616 b The selling price of a TV marked at $569, now discounted by 15%, is which of the following? A $85.35 B $550 C $554 D $483.65 c The sales price of cauliowers marked at $3.40 each, now discounted by 25%, is which of the following? A $2.55 B $3.15 C $3.00 D $2.85 d The sales price of a microwave oven, marked at $540, now discounted by 18%, is which of the following? A $558 B $442 C $502 D $462 3 Find the discount as a percentage of the marked price in each case. a b

Example 24

c A textbook that normally sells for $28.50 is on sale for $22. d A clothes dryer valued at $240 is sold for $190, due to slight damage. e An airline ticket is reduced from $699 to $425 in the off-peak season.
Example 25

4 a A dress sells for $96 at a 20%-off-everything sale. What is the regular price of the dress? b A bookshelf sells for $110 after a 40% discount. What was the original price of the bookshelf? c A discontinued set of tyres is reduced in price by 35%. They now sell for $69 each. Find: i the normal price of a tyre ii the amount you save by buying four of these tyres. d Jeans are priced at $89 in the post-Christmas sales. If this is a saving of 15% on their normal price, what do the jeans normally sell for? 5 The Bricks and Mortar Supply Company offers a range of discounts to builders according to the total number of bricks they order. The table on the right summarises the discounts on offer.
Total number of bricks Discount to builders (%)

up to 5000 500110 000 10 00115 000 15 00120 000 over 20 000

5.0 7.5 8.75 9.5 10.0

Calculate the cost to builders who buy: a 17 000 bricks @ 63c each c 8764 bricks @ 87c each

b 24 000 bricks @ 54c each d 19 821 bricks @ 72c each

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6 Janine needs to buy carry-bags for her shop. She buys bags to the value of $148. a Janine receives a business discount of 15%. How much will she pay? b If Janine pays in cash, she receives a further discount of 5%. How much will she now pay? c Find the amount Janine would pay if she received a single discount of 20% on $148. d Is a single discount of 20% the same as the two successive discounts of 15% and 5%? Which is better? 7 A builder buys goods to the value of $867.50. He receives a 10% trade discount and a further 4% discount if paying with cash. How much will the builder pay in cash? 8 A store offers a 15% discount on all goods, plus a further 5% discount if payment is by cash. For each of the following purchases, payment is by cash. Find: i the nal sales price ii the total discount received iii the percentage discount (on the marked price). a a lounge suite, marked at $4999 b a TV, marked at $759 c a DVD player with 4 DVDs, marked at $600 d a washing machine, marked at $1089. 9 Wanting a trade-in on your old printer, you visit three stores to price a new one. You summarise the offer made by each store: Store 1: Cash price = $395 Discount = 10% Trade-in = nil Store 2: Cash price = $370 Discount = 5% Trade-in = nil Store 3: Cash price = $412 Discount = nil Trade-in = $60

Example 26

From which store would you buy the printer? Justify your answer. 10 A tradesperson always receives a 10% discount at a hardware shop. The shop now offers a 15% discount to all customers. The tradesperson asks for 25% off her bill during the sale. Instead, the salesperson calculates her 10% trade discount before giving a 15% discount on the reduced amount. Explain why.

Using technology
Magnicent male sale!
A mens clothing store is having a 5%-off-all-stock sale. 1 Calculate the sale price for each item and determine the total amount saved.
Item purchased Normal price ($)

Spreadsheet 5-05 Magnicent male sale

Suit Shirt Tie Belt Shoes

299.00 66.00 21.40 18.60 123.40

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2 Set up your spreadsheet as follows:

A 7 8 9 10 11 12 13 14 15 16 17 18 Total saved= =D15F15 Item Suit Shirt Tie Belt Shoes Total paid =SUM(D10:D14) =SUM(F10:F14) Normal price Discount rate 0.15 =E10 Sale price =(1E10)*D10 B C D E F

Step 1: Step 2: Step 3: Step 4: Step 5: Step 6: Step 7:

Enter the labels as shown. Enter the marked price for each item in column D. Enter the formula =E10 in E11 and copy it down to E14. Enter the formula =(1E10)*D10 in F10 and copy it down to F14. Enter the formula =SUM(D10:D14) in D15. Enter the formula =SUM(F10:F14) in F15. Enter the formula =D15F15 in D17.

-- % discount, how would 3 If a purchaser in the clothing industry was to receive a further 2 1 2 you extend your spreadsheet to show the total paid and the total amount saved?

4 Modify your spreadsheet accordingly, obtain a hard copy and paste it in your workbook.

Working mathematically
Reasoning: Successive discounts how low can you go!
It is possible to receive multiple discounts on goods by being a valued customer, paying cash etc. The rst discount is calculated on the list price, the second discount on the rst net price, the third discount on the second net price, and so on. The following formula will convert multiple discounts to a single discount rate: single discount rate = [1 (1 D1)(1 D2)(1 D3) ] 100% Use the formula to calculate the single discount rate equivalent to successive discounts of: a 30% then 3% b 40% then 5% then 1%

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Power plus
1 Brenda and Barry have the same net fortnightly income. Brenda has $187.60 deducted from her fortnightly gross income of $514. Barry, who is paid weekly, has $64.20 deducted from his gross pay each week. Calculate the difference between Brendas and Barrys gross fortnightly incomes. 2 The cost of a car is reduced by 5% when indirect taxes are abolished. That price is then increased by 10% to include GST. The car now sells for $28 000. What was the original price of the car? (Write your answer to the nearest ten dollars.) 3 Wrapping paper is selling at the following prices: 75 cm wide 150 cm long for $4.05 per roll 75 cm wide 150 cm long for $7.95 for 2 rolls 70 cm 250 cm long for $6.80 per roll. Which is the best buy based on the amount of paper you get? 4 A business needs to restock its computer CDs. It requires 200 CDs and has three options: Option 1: packs of 10 CDs for $19.95 Option 2: single CDs for $1.85 each Option 3: bulk order of 200 CDs for $365 Which purchase option should the business decide on for its 200 CDs? Why? 5 A large rm is establishing new ofces. It needs 30 three-drawer cabinets or the equivalent in two-drawer or one-drawer cabinets. Suppose that, as nancial controller of the rm, you are studying sales brochures from three stores: Store 1 sells only three-drawer and two-drawer ling cabinets. Offer: Buy a three-drawer cabinet and get a two-drawer cabinet at no extra cost! Cost: $100 for a three-drawer cabinet. Store 2 sells only three-drawer ling cabinets. Offer: Best prices in town! Cost: $55 per cabinet. Store 3 sells all types of ling cabinets. Offer: Cheap! Cheap! Cheap! Cost: Only $19.20 per drawer. With which store should you place your order? Explain why. 6 A TV set costs $750 before a mark-up of 40% is applied. The retailer plans to give a 10% discount and considers the following options: Option 1: Increasing the cost price by 40% before applying the discount. Option 2: Applying the discount on the cost price before applying the mark-up of 40%. Is there any difference in the selling price of the TV if Option 1 or Option 2 is used? 7 Jordan earns $867 per week. Over the year, he has accrued work-related expenses of $527. Jordans employer deducts PAYG tax instalments of $172.40 from his weekly pay. Find: a Jordans gross annual income b his taxable income c the tax payable on his taxable income d the total amount of PAYG tax instalments for the year e the amount of Jordans tax refund or tax debt.

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8
Spreadsheet 5-06 Tax rates Taxable income ($)

Tax rates Tax on this income

Tax brackets

06000 600120 000 20 00150 000 50 00160 000 60 000

Nil 17c for each $1 over $6000 $2380 plus 30c for each $1 over $20 000 $11 380 plus 42c for each $1 over $50 000 $15 580 plus 47c for each $1 over $60 000
Source: Australian Taxation Ofce website

Use the tax table above to nd the tax payable on each of these taxable incomes: a $34 276 b $72 456 c $906.40 per week d $3167 per fortnight e $5210 per month 9 Luis has a gross income of $65 400. If he pays $16 440.10 in tax, use the table in Question 8 to calculate: a the taxable income b the amount of Luis deductions. 10 Angela and Dianne are taking their annual holidays at the same time. They both receive a cheque for $3000 which includes 17.5% holiday loading. Angelas holiday is for three weeks, while Diannes is for four weeks. Calculate how much more money than Dianne Angela earns in a working week.

Worksheet 5-10 Earning and spending nd-a-word

Language of maths
allowance consumer employer net income piecework simple interest annual deduction gross overtime principal superannuation bonus discount income per annum retainer taxation commission earnings instalment percentage salary wage

1 Explain the difference between a salary and a wage. 2 Every second letter has been left out of the following words. Write the completed words. a GOS b TXTO c VRIE d ISAMN 3 The word per is used frequently in rates. Write three rates that use per in this topic. 4 Use the word commission in two different sentences, showing its different meanings. 5 What type of income is based on the number of items produced or processed?

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Topic overview
Write 10 questions (with solutions) that could be used in a test for this chapter. Include some questions that you may have found difcult to answer! Swap your questions with another student and check their solutions against yours. Write down any section of work from this chapter that you did not understand. Discuss it with your teacher. Copy and complete the overview summary below.
Salary Wage Overtime Commission Piecework

Bonus Holiday loading 17.5%

Earning income

Allowances

Discounts S p e n d i n g

Best buys

CONSUMER ARITHMETIC
Paying tax

Budgeting

Gross pay Net pay

Deductions

Taxable income

Income tax

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Chapter 5
Ex 5-01 Ex 5-01

Review

Topic test Chapter 5

1 A library assistant earns $1927.40 per month. What is his annual salary? 2 Jake is a shop assistant employed for $9.40 per hour. How much does he earn for working: a 6 hours? b 10 hours? c from 8:30am to 3:30pm? 3 Convert an annual salary of $50 000 to income: a per week b per fortnight c per month. 4 Of the following workers, who earns the most? A Andrew, who earns $27 600 p.a. B Brian, who earns $2420 per month C Christine, who works 36 hours a week at $12.70 per hour D Dinko, who earns $1035 per fortnight 5 Calculate the total earnings for each of these amounts of work: a 36 hours (normal) + 2 hours (time-and-a-half). Normal rate = $18 per hour. b 38 hours (normal) + 4 hours (double time). Normal rate = $15.40 per hour. c 40 hours (normal) + 4 hours (time-and-a-half) + 2 hours (double time). Normal rate = $17.20 per hour. 6 A factory worker is employed under the following award:
Award schedule Normal rate is $10.75 per hour

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Normal rate For 0 to 38 hours worked Time-and-a-half For the next 3 hours worked Double time For each hour worked after that Calculate the wage for working: a 40 hours b 32 hours c 44 hours.
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7 Meredith earns $12.60 per hour for the rst 8 hours she works on any day, and double time for any hours after that. Find Merediths gross daily income for working from 9:00am to 8:00pm. 8 Branka is paid 4.5% commission on the value of goods she sells over $2000. Find Brankas income for selling goods worth: a $8400 b $27 220. 9 Nicole is a bookseller who earns 4% commission on the value of books she sells. She is also paid a monthly retainer of $900. If Nicoles average monthly sales are $82 500, nd: a her average monthly income b her annual income.

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10 Sam, the super salesman, is paid commission on a sliding scale of 3% on the rst $50 000 of sales and 2.5% on all sales after that. Calculate Sams income if he sells goods worth: a $42 000 b $80 000 c $452 000 11 Chris earns $1.15 for each bag of potatoes he picks. How many bags must he pick to earn at least $100? 12 A jockey earns $100 per race ride and 5% of the value of prizemoney his horses win. Last week Dan had 30 rides and his horses won prizemoney worth $172 500. How much did Dan earn? 13 Sandra earns $876 per week and is about to begin her annual 4 weeks of holidays. Along with her 4 weeks pay, she also receives a 17.5% annual holiday loading on the 4 weeks. Find Sandras total holiday pay. 14 Mick is a scaffolder who earns $19.80 per hour plus an additional $2.70 per hour for working in extreme heat. He also earns a $5.40 per week uniform allowance. Calculate Micks income for last week when he worked 40 hours, 9 of which were in extreme heat. 15 Find Paulas net income if she earns $1295 per week, has miscellaneous deductions of $184 and pays tax at the rate of 32.4 cents in the dollar. 16 Determine the best buy in each of these cases: a 500 mL of Supreme ice cream for $4.80 or 300 mL of Pinnacle ice cream for $2.70 b 750 g of Mill our for 94c or 500 g of Store our for 70c 17 Compare the unit prices of the following to nd the best value. A 420 g of beef at $3.87 B 600 g of beef at $5.42 C 1.2 kg of beef for $11.80 18 Find: a the sale price when a $545 microwave oven is discounted by 10% b the marked price when a scanner sells at a 20%-off sale for $189 c the percentage discount when a $720 TV is sold for $650. 19 A retailer marks up all stock by 80%. If a TV has been marked up by $440, nd: a the cost price of the TV b the selling price of the TV. 20 A store has a xed percentage mark-up that is added to the cost price of DVDs. One week, the store gives a 20% discount. The following week, the 20% discount is given on the cost price and then the same xed percentage mark-up is added. Does the selling price of the DVDs remain the same? Explain your answer using an example.

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