CH 11

LEY_bk953_11_finalpp Page 311 Wednesday, January 12, 2005 11:36 AM
Chapter 11
Consumer Arithmetic
This chapter deals with solving consumer arithmetic problems involving
earning and spending money, simple interest and loans.
After completing this chapter you should be able to:
calculate weekly, fortnightly, monthly and yearly earnings for various types of income
calculate net income after considering common deductions
calculate simple interest using the formula
apply the simple interest formula to problems involving investing money
calculate and compare the cost of purchasing goods by different means
calculate a best buy.
Syllabus reference NS5.1.2

WM: S5.1.1S5.1.5
312
Consumer Arithmetic (Chapter 11) Syllabus reference NS5.1.2
Diagnostic test
1
Carol earns $397.20 per week. This is

equivalent to a yearly salary of:
A $19 860
B $20 654.40
C $10 327.20
D $19 065.60
A salary of $41 808 p.a. is not equivalent

to:
A $804 per week

B $3216 per fortnight
Alex is a real estate agent. He charges the

following commission for selling home
units: 3% of the first $150 000 and 1.5%
for the remainder of the selling price. His
commission for selling a home unit for
$210 000 would be:
A $6300
B $3150
C $4500
D $5400
C $3484 per month
Sam earns $360 per week. This is

equivalent to a monthly income of:
A $1440
B $1260
C $1560
D $1594.29
B $831.60
C $920.70
D $950.40
Bettina earns $680 per week. She is

entitled to 4 weeks annual recreation
leave and receives an additional holiday
loading of 17.5%. Her total holiday pay
for 4 weeks is:
A $2720
B $2839
C $3196
D $476
Deborah is paid $0.48 for each pair of

shorts that she sews. If she can sew an
average of 12 pairs of shorts per hour and
she works a 38-hour week, then her
average weekly earnings are:
Sun.
$14.38
$17.98
$21.57
The table shows the award wages for

a kitchen hand employed as a casual.
The wages of a casual kitchen hand
who works 10 hours Monday to Friday,
4 hours on Saturday plus 5 hours on
Sunday is:
Chan works a 36-hour week and is paid

$19.80 per hour. His total wages for a
week in which he works an additional
4 hours at time-and-a-half and 3 hours at
double time is:
A $712.80
Sat.
Kitchen
hand
D $10 452 per quarter

3
Mon.Fri.
10
11
A $273.22
B $323.57
C $305.62
D $337.93
Simon earns $465 per week. The

deductions from his salary each week
are tax $140, superannuation $32,
health insurance $36.80. His net pay
for the week is:
A $256.20
B $673.80
C $320.20
D $536.20
The simple interest on $2490 at

4.5% p.a. for 5 years is:
A $112.05
B $2602.05
C $560.25
D $3050.25
Michelle invested $3000 for 4 years and

earned $780 in interest. The annual rate
of interest was:
A $5.76
B $18.24
A 26%
B 6.5%
C $218.88
D $1094.40
C 1.04%
D 4%
12
13
A camera store offers a discount of 12%

for paying cash. The cash price of a
camera marked as $499 is:
The following conditions for the deferred

payment scheme apply:
i
Pay nothing for 12 months.
A $439.10
B $439.12
ii
C $59 90
D $59.88
Balance plus interest to be repaid by

equal monthly instalments over the
two years following the interest free
period.
iii
Simple interest of 16% p.a. is

charged for the 3-year period of
the agreement.
The method of purchasing goods by which

a deposit is paid and the balance is paid
off over a short period of time with no
interest charged, but the goods cannot
be taken until full payment has been
made is called:
A time payment
The total amount you would have to pay

for the television under this scheme is:
B hire purchase
C deferred payment D lay-by

14
15
16
A refrigerator costing $1895 can be

bought on terms for $295 deposit and
24 monthly instalments of $84. The total
cost of buying the refrigerator on terms
would be:
17
A $1498
B $1737.68
C $1977.36
D $2217.04
Using the table on page 344, the monthly

repayment on a loan of $16 500 over
3 1--2- years at 12% p.a. is, to the nearest
cent:
A $1895
B $2016
A $468.41
B $548.04
C $2311
D $2190
C $639.34
D $483.05
A television set costing $1289 can be

bought on the following terms: deposit
$289 and the balance to be repaid over
3 years by equal monthly instalments.
Simple interest is charged at 11% p.a.
If the TV is bought on these terms, the
monthly repayment would be:
18
A $36.94
B $47.62
19
C $39.59
D $30.83
Which of the following is the best value?

A 350 mL for $1.40
B 750 mL for $2.85
C 2 L for $6.40
D 5 L for $16.50
A television set is advertised as follows:
The price of a TV including GST is $495.

The amount of GST included is:
A $49.50
B $45
C $445.50
D $450
98sit
$N1o 4
depo
No repayments
for 12 months
(conditions apply)
If you have any difficulty with these questions, refer to the examples and questions in the sections
listed in the table.
Question
Section
13
4, 5
10, 11
12
13
14, 15
16
17
18
19
313
314
A. EARNING AN INCOME
There are a number of different ways in which people are paid for providing their labour, knowledge, skills and
services. If people work for themselves they charge a fee, some people rely on income from investments, but
most people work for an employer. By research and discussion, complete the table below that shows the ways
people are paid when they work for an employer.
Exercise 11A
Earning an income
Method of
payment
Description
Salary
A fixed amount per year usually

paid weekly or fortnightly.
Wages
Based on an hourly rate for an

agreed number of hours per
week. Usually paid weekly or
fortnightly.
Commission
A percentage of the value of

goods or services sold is paid.
Sometimes a low wage, called
a retainer, is paid in addition
to this.
Piecework
A fixed amount for each item

produced or completed.
Fee
A fixed amount for a service

provided.
Casual
A fixed hourly rate for the

number of hours worked.
Examples of
occupations
Advantanges/
Disadvantages
B. SALARIES AND WAGES

Example 1
Georgina earns a salary of $670.85 per week. How much does she earn per:
a fortnight
b year?
a Fortnightly salary = $670.85 2
= $1341.70
b Yearly salary
= $670.85 52
= $34 884.20
(using 1 fortnight = 2 weeks)

(using 1 year = 52 weeks)
Exercise 11B
1
Convert the following weekly salaries into the equivalent salary per:
i fortnight
ii year
a $457
b $1025.60
c $1378.94
Example 2
Harry earns a salary of $48 600 p.a. How much does he earn per:
a week
b fortnight
p.a. is short
for per annum,
which means
per year.
c month?
a Weekly salary = $48 600 52

(using 1 year = 52 weeks)
= $934.62 to the nearest cent
b Fortnightly salary = $48 600 26
(using 1 year = 26 fortnights)
c Monthly salary = $48 600 12
(using 1 year = 12 months)
= $4050
Convert the following yearly salaries into the equivalent salary per:
i week
ii fortnight
iii month
a $52 400
b $95 370
c $82 900
Convert the annual salaries shown in the advertisements below to the equivalent:
i weekly
ii fortnightly
iii monthly salaries
a
b
Fashion
Girl's Surfwear Designer
$80K
Exciting position for the
right person. Ph 9444 222
c
Cleaner/Housekeeper
$40K Rare opportunity
to work in fine home.
Ph 9666 000
Foreman $110K
Experienced foreman required
for city project. Ph 9333 000
$80K is a
short way of
indicating
$80 000.
315
316
Example 3
Brad earns $288 per week. What is his monthly salary?
1 month 4 weeks, so we must calculate Brads yearly salary first.
Yearly salary = $288 52
= $14 976
Monthly salary = $14 976 12
= $1248
4
Convert the following weekly salaries into monthly salaries:

a $225
b $196
c $674
Example 4
Bruno earns $3600 per month. What is his equivalent weekly salary?
Again, we must calculate the yearly salary first.
Yearly salary = $3600 12
= $43 200
Weekly salary = $43 200 52
5
Convert the following monthly salaries to the equivalent weekly salaries.

a $4200
b $5635
c $3599
Scott earns $68 840 p.a., Lisa earns $1350 per week and Paula earns $5700 per month.
Who earns the most?
Example 5
Ella works a 35-hour week and is paid $23.86 per hour. What are her weekly
wages?
Weekly wages = 35 $23.86
= $835.10
7
Calculate the weekly wages for a person who works a 35-hour week and is paid:
a $18.90/h
b $26.48/h
c $84.50/h
Example 6
Yoshi earns $1389.50 for working a 35-hour week. What is his hourly rate of pay?
Hourly rate = $1389.50 35
= $39.70
8
Calculate the hourly rate of pay for a person who works a 35-hour week and is paid weekly
wages of:
a $994
b $847
c $626.50
Example 7
Sophie works a 38-hour week and is paid $28.75 per hour. How much does she
earn in a:
a week
b fortnight
c year?
a Weekly wages = 38 $28.75

= $1092.50
b Fortnightly wages = $1092.50 2
= $2185
c Yearly wages = $1092.50 52
= $56 810
How much does a person earn in a i week ii fortnight iii year if the person works a 38-hour
week and is paid:
a $43/h
b $52.90/h
c $75.30/h
Example 8
Remember that
1 month is not
equal to 4 weeks!
Fiona earns $16.80 per hour and works a 36-hour week.

What are her average monthly wages?
Weekly wages = $16.80 36
= $604.80
Yearly wages = $604.80 52
= $31 449.60
Monthly wages = $31 449.60 12
= $2620.80
10
What are the average monthly wages for a person who works a 36-hour week and earns:
a $18.20/h
b $32.90/h
c $76.50/h
317
318
C. ADDITIONAL PAYMENTS
Example 1
Ben normally works a 35-hour week and is paid $18.90 per hour. Calculate his
total wages for a week in which he works an additional 5 hours overtime at
time-and-a-half.
Full-time employees who earn wages are expected to work a minimum number
of hours each day, or each week, as negotiated in their workplace agreement.
Overtime is paid to people who work hours in addition to those required by their
workplace agreement and it is paid at a higher rate. The most common rates of
overtime payment are:
a time-and-a-half, i.e. the employee is paid at 1 1--2- times the normal hourly rate
of pay, e.g. if the normal rate of pay is $20/hour then the employee would be
paid ($20 1 1--2- =) $30/hour at time-and-a-half.
b double time, i.e. the employee is paid double the normal rate of pay, e.g. if the
normal rate of pay is $20/hour then the employee would be paid ($20 2 =)
$40/hour at double time.
Normal pay = $18.90 35
= $661.50
Overtime = ($18.90 1.5) 5
= $141.75
Total wages = $661.50 + $141.75
= $803.25
Exercise 11C
1
Dianne normally works a 35-hour week and is paid $23.40 per hour. Calculate her total
wages for a week in which she works an additional 4 hours at time-and-a-half.
Rebecca normally works a 36-hour week and is paid $17.20 per hour. Calculate her total
wages for a week in which she works an additional 3 hours at time-and-a-half.
Tim is paid $18.60 per hour for a normal 35-hour week and time-and-a-half for any extra
hours worked. How much would he earn for a week in which he worked 40 hours?
Example 2
Ringo normally works a 35-hour week and is paid $36.15 per hour. Calculate his
total wages for a week in which he works an additional 5 hours at time-and-ahalf and 3 hours at double time.
Normal pay = $36.15 35
= $1265.25
Overtime = ($36.15 1.5) 5 + ($36.15 2) 3
= $488.03
Total wages = $1265.25 + $488.03
= $1753.28
Jarrod normally works a 35-hour week and is paid $31.20 per hour. Calculate his total wages
for a week in which he works an additional 5 hours at time-and-a-half and 3 hours at double
time.
Martha normally works a 35-hour week and is paid $28.60 per hour. Calculate her total
wages for a week in which she works an additional 8 hours at time-and-a-half and 5 hours
at double time.
Dana normally works a 38-hour week and is paid $36.15 per hour. Calculate her total wages
for a week in which she works an additional 4 hours at time-and-a-half and 2 hours at double
time.
Erin is paid $24.70 per hour. She is paid the normal rate for the first 7 hours worked each
day, time-and-a-half for the next 2 hours and double time thereafter. Calculate her total
wages for a day on which she worked:
a 8 hours
b 9 hours
c 10 hours
Rob is paid $26.30 per hour. He is paid the normal rate for the first 6 hours worked each day,
time-and-a-half for the next 2 hours and double time thereafter. Calculate his total wages for
a day on which he worked
a 8 hours
b 9 hours
c 10 hours
Example 3
Don works a 35-hour week and is paid time-and-a-half for any extra hours
worked. One week he worked 5 hours overtime and was paid $969. What is his
hourly rate of pay?
Let the hourly rate of pay be $y, then
y 35 + y 1.5 5 = 969
35y + 7.5y = 969
42.5y = 969
969
y = ----------42.5
= 22.8
i.e. Don earns $22.80 per hour.
Angela works a 35-hour week and is paid time-and-a-half for any extra hours worked. One
week she worked 4 hours overtime and was paid $1102.90. What is her hourly rate of pay?
10
Daniel works a 35-hour week and is paid time-and-a-half for any extra hours worked. One
week he worked 7 hours overtime and was paid $982.80. What is his hourly rate of pay?
11
Pete works his normal 35-hour week plus 4 hours overtime at time-and-a-half and 3 hours at
double time. He was paid $1576.38. What is his hourly rate of pay?
12
Glenda is paid $17.90 per hour for working a 35-hour week and time-and-a-half for any extra
hours worked. One week she was paid $733.90. How much overtime did she do?
319
320
Example 4
Paul works for a builder and earns $66 000 per year. At the end of the year the
builder decides to pay Paul a bonus equal to one months salary. Calculate Pauls
bonus.
A bonus is an extra payment made to employees, often as a reward for meeting
deadlines, exceeding profit targets, producing a high quantity of work etc.
Bonus = $66 000 12
= $5500
13
Jenni works as a secretary and earns $58 600 per year. At the end of the year her employer
pays her a bonus of one months salary. Calculate Jennis bonus.
14
Abdul is paid $23.50 per hour and works a normal 35-hour week. At the end of the year his
employer pays him a bonus of 5% of his yearly wages. Calculate Abduls bonus.
15
A company made a profit of $194 000 for the year. The owner decided to share 60% of the
profit between her 80 employees as a bonus. Calculate the bonus paid to each of the
employees.
16
For completing a project ahead of schedule, each member of the project team was given a
bonus of 3% of the after-tax profit made. Calculate the bonus paid to each member of the
team if the after-tax profit was $120 000.
17
An engineering design company decided to pay its 12 employees an equal share of 20% of the
profit on a special project, as a bonus. If each of the 12 employees received a bonus of $1300,
how much profit did the company make on this project?
18
Marks total income for the year was $57 337.28. This included a bonus of one months salary.
What is Marks normal annual income (i.e. his income without any bonus)?
Example 5
Tanya earns $810 per week. She is entitled to 4 weeks annual recreation leave
and receives an additional holiday loading of 17.5%. Calculate Tanyas:
a holiday loading
b total pay for this holiday period.
Holiday loading (leave loading) is an extra payment given to employees when
they take their annual recreation leave. It is usually calculated as 17.5% of
4 weeks normal salary or wages.
a Normal pay for 4 weeks = $810 4
= $3240
Holiday loading = 17.5% of $3240
= 0.175 $3240
= $567
b Holiday pay = $3240 + $567

= $3807
or Holiday pay = 117.5% of 4 weeks pay
or Holiday pay = 1.175 4 $810
or Holiday pay = $3807
19
Kylie earns $760 per week. She is entitled to 4 weeks annual leave and receives an additional
holiday loading of 17.5%. Calculate Kylies:
a holiday loading
b total pay for this holiday period
20
Vinh works a normal 35-hour week and is paid $17.90 per hour. He is entitled to 4 weeks
annual leave and receives an additional holiday loading of 17.5%. Calculate Vinhs:
a holiday loading
b total pay for this holiday period
21
Sunny earns $1230 per fortnight. She is entitled to 4 weeks annual leave and receives an
additional holiday loading of 17.5%. Calculate Sunnys total pay for this holiday period.
22
Wesley earns $43 940 per year. He is entitled to 4 weeks annual leave and receives an
additional holiday loading of 17.5%. Calculate Wesleys total pay for this holiday period.
Example 6
Zoe works as a receptionist. She is entitled to 4 weeks annual leave and receives
a holiday loading of 17.5%. One year her total holiday pay was $3092.60. What
is Zoes weekly salary?
Let the weekly salary be $z, then
117.5% of 4 z = 3092.60
i.e. 1.175 4 z = 3092.60
4.7 z = 3092.6
3092.6
z = -----------------4.7
= 658
i.e. Zoe earns $658 per week.
23
Tiffany is entitled to 4 weeks annual leave and receives a holiday loading of 17.5%. One year
her total holiday pay was $4512. What is Tiffanys weekly salary?
24
Bin is entitled to 4 weeks annual leave and receives a holiday loading of 17.5%. One year his
total holiday pay was $4812.80. Calculate his holiday loading.
321
322
Investigation 1
WM: Reasoning, Applying Strategies
Calculating total pay

Here is a spreadsheet to calculate the total pay for the employees of a factory.
1
2
3
4
5
6
7
8
A
Employee
B
Rate ($/h)
C
Normal time (h)
24.72
18.94
23.65
26.36
16.78
15.43
36
36
36
35
35
40
Bill
Sue
Alan
Gillian
Natasha
Eric
D
Overtime (h)
time-and-a-half
8
6
4
5
E
Overtime (h)
double time
4
1
2
3
F
Total pay
Copy the spreadsheet.
In Cell F3 type the formula = (C3 + D3*1.5 + E3*2) B3.
To find the total pay for the other employees:

Highlight cells F3 to F8.
Go to Edit.
Select Fill Down.
Add some more employees, put in their rate and the number of hours worked. Calculate their
total pay.
D. PIECEWORK
Piecework is a method of earning money in which the employee is paid for the number of items (pieces)
produced or completed.
Example 1
Peta works at home sewing childrens tops. She is paid $3.20 for each top she
produces. How much does she earn for a week in which she produces 120 tops?
Income = 120 $3.20
= $384
Exercise 11D
1
Kerry is paid $0.83 per item for ironing shirts in a factory. How much does she earn for a
week in which she irons 240 shirts?
Patricia earns $1.03 for each dress she finishes in a clothing factory. If, on average, she can
finish 7 dresses per hour and she works a 35-hour week, what are her average weekly
earnings?
Joe works for a mens hairdresser and is paid $9 for each haircut he does. If he averages
16 haircuts per day for 6 days, how much does he earn?
Terry has a job assembling door locks. One week he assembles 450 locks and is paid $216.
How much is he paid for assembling each lock?
Wayne works for Sparkler Lighting Co. assembling lamps. He is paid the following daily
piecework rates:
up to 50 lamps
$1.45 /lamp
No. assembled
for each lamp over 50 and up to 70
$1.60 /lamp
55
for each lamp over 70
$1.90 /lamp Mon.
Tues.
48
Here is Waynes work card for the week.
Wed.
62
Calculate Waynes earnings for the week.
Thurs.
76
Fri.
52
E. COMMISSION
Commission is a method of earning income by which the employee is paid a percentage of the value of
their sales.
Example 1
Georgia works as a salesperson and is paid a commission of 6% of the value
of her sales. If Georgia sells $12 000 worth of goods one week, what is her
commission?
Commission = 6% of $12 000
= 0.06 $12 000
= $720
Exercise 11E
1
A real estate agent charges a commission of 1.5% of the value of any house he sells. Calculate
how much he will earn if he sells a house for:
a $660 000
b $320 000
c $980 000
Joanne has a part-time job selling cosmetics. She is paid a commission of 18% of all sales.
Calculate how much she earns in one month if her sales are:
a $9000
b $5400
c $2300
323
324
Daina is a stockbroker. She receives a commission

of 2.5% of the selling price of any shares that she
sells. How much commission would she earn for
selling shares worth:
a $15 000
b $27 000
c $243 000?
The commission
earned for buying
or selling shares is
called brokerage.
Example 2
In excess of
means
more than.
Steve has a job selling clothing. He earns a commission

of 19.5% of all weekly sales in excess of $5000.
How much commission does he earn on sales of:
a $4800
b $8650?
a As Steves sales are not more than $5000 he earns no commission.

b Excess = $8650 $5000
= $3650
Commission = 0.195 $3650
= $711.75
Fiona has a job selling cleaning equipment. She earns a commission of 17.5% of all weekly
sales in excess of $10 000. How much commission does she earn on weekly sales of:
a $8000
b $12 000
c $24 000?
Example 3
Carol sells internet plans. She is paid the following rates of commission:
1.5% of the first $20 000 worth of sales,
2.5% of any sales above $20 000.
Calculate how much she earns in a week in which her sales are:
a $16 000
b $24 000
a Commission = 1.5% of $16 000

= 0.015 $16 000
= $240
b Commission = 1.5% of $20 000 + 2.5% of ($24 000 $20 000)
= 0.015 $20 000 + 0.025 $4000
= $400
Harry sells internet plans. He is paid the following rates of commission:

2% of the first $20 000 worth of sales,
3.5% of any sales above $20 000.
Calculate how much he earns in a week in which his sales are:
a $13 000
b $19 990
c $20 000
d $25 000
Zane has a job selling advertising. He is paid a commission on

his weekly sales as follows:
1% for the first $50 000 worth of sales,
2% of the next $30 000 worth of sales and
6% of the value of any remaining sales.
e $38 000
Rate means
the percentage rate of
commission.
How much would Zane earn in a week in which his

sales are:
a $46 000
b $50 000
c $65 000
d $80 000
e $92 000
7
Marie is a real estate agent. She charges the following commission for selling home units:
3% for the first $160 000 of the selling price of the unit,
2% for the next $50 000 and
1.5% for the remainder of the selling price.
Calculate how much Marie would earn for selling a unit for:
a $150 000
b $180 000
c $210 000
d $280 000
e $360 000
Example 4
Chad sells washing machines. He is paid a fixed wage of $200 per week plus a
commission of 3% of sales. How much does he earn in a week in which his sales
are $5480?
Commission = 0.03 $5480
= $164.40
Weekly earnings = Retainer + Commission
= $200 + $164.40
= $364.40
The fixed part of

Chads wages
($200) is called
a retainer.
Therese sells printers for computers. She is paid a retainer of $250 per week plus a
commission of 4% of her sales. How much does she earn in a week in which she sells
$14 970 worth of printers?
Michael works for a bookseller. He is paid a retainer of $280 per week plus a commission of
2% of sales. How much does he earn in a week in which his sales are:
a $7650
b $3000
c $12 000
d $4700
e $8260?
325
326
10
Complete the following table to show the weekly earnings of the sales team for a
pharmaceutical company.
Employee
R. Roberts
H. Low
J. Thum
K. Trau
G. Flood
Retainer
Rate
Sales
Commission
$200
$150
$100
nil
nil
2%
5%
6%
8%
9%
$4 200
$8 600
$10 450
$12 900
$15 360
$84
Weekly earnings
11
Jacqueline works as a sales representative for a hardware company. She is paid a retainer of
$250 per week plus a commission of 3% of any sales in excess of $6000.
How much would she earn in a week in which her sales were:
a $4500
b $6400
c $7200
d $8430
e $10 960?
12
Hassan gets a job as a salesperson with a mobile phone company. He is offered two methods
of weekly payment:
A Retainer of $200 plus commission of 3%, or
B No retainer, commission of 8%.
a How much would Hassan earn, using each method, if his weekly sales were:
i $0
ii $3000
iii $4000
iv $5000
v $10 000?
b Which method of payment would you advise Hassan to choose? Give reasons.
13
Phillipa works as a salesperson and is paid a commission of 5% of sales. If Phillipa earns a

commission of $821 in one week, what was the value of the goods that she sold?
14
One week Alex sells two cars costing $32 000 each. If he was paid a commission of $1280,
what is the rate of commission that he is paid?
15
Joe is paid a retainer plus a commission of 4% of sales. If he receives $980 for selling
$18 000 worth of goods, what is the retainer that he is paid?
16
Sally is paid a retainer of $220 per week plus a commission of 3% of sales. One week she
earned $478. What was the value of the goods that she sold?
17
Sasha is paid a retainer of $180 per week plus a commission of 6% of sales in excess of
$5000. One week he earned $858, what was the value of the goods that he sold?
18
Jacques is paid the following commission for selling computers:

1.5% of the first $25 000 worth of sales
2.5% of any sales in excess of $25 000.
One week he earns a commission of $750. What was the value of the computers he sold in
this week?
F. CASUAL AND PART-TIME JOBS

Casual and part-time workers are paid for the number of hours worked. The hourly rate is higher than for
full-time workers because they may not be entitled to benefits such as holiday leave and sick leave. They
may also be paid special rates for weekends and public holidays. The difference between casual and
part-time workers is dependent on the number of hours worked.
Example 1
The table below shows part of an award agreement for tradespersons.
Tradespersons
Bricklayer
Carpenter
Painter
Sign writer
Roof tiler
Full-time $ per hour
Casual $ per hour
15.90
16.08
15.63
15.89
15.79
19.08
19.30
18.76
19.07
18.95
a Tom is a full-time bricklayer who works a 35-hour week. Calculate his normal
weekly wages.
b Bob is a qualified bricklayer who is employed as a casual for 35 hours one week.
How much more than Tom does Bob earn?
a Toms wages = $15.90 35
= $556.50
b Bobs wages = $19.08 35
= $667.80
$667.80 $556.50 = $111.30
i.e. Bob earns $111.30 more than Tom for this week.
Exercise 11F
Use the table in example 1 above to do questions 14.
1
Emma is a sign-writer who does casual work. She works the following hours one week:
Monday 3 hours, Tuesday 4 hours, Wednesday 3 hours, Friday 5 hours. How much does
she earn?
a Matt is a full-time painter who works a 35-hour week. Calculate his normal weekly wages.
b During a busy period he employs a casual to work with him for the 35 hours. How much
extra does the casual earn for the weeks work?
Jack is a full-time roof tiler. Due to extra demand he employs two casuals to help him for
7 hours on each of 3 days. What is the wages bill for the two casuals?
Grant is a carpenter who is employed as a casual. One week he earns $463.20. How many
hours did he work?
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328
Example 2
The table below shows part of the Restaurant Employees Award.
Casual $ per hour
Kitchen hand
Waiter
Grill cook
Grade 6 chef
Mon.Fri.
Sat.
Sun.
14.38
14.92
15.73
18.69
17.98
18.65
19.66
23.36
21.57
22.38
23.59
28.03
Calcuate the wages of a casual waiter who works 8 hours from Monday to Friday,
6 hours on Saturday and 4 hours on Sunday.
Wages = 8 $14.92 + 6 $18.65 + 4 $22.38
= $320.78
Use the table in example 2 to do questions 58.

5
Emily is employed as a casual kitchen hand for 3 hours per day for each day Monday to Friday.
Calculate her wages.
Trent is a grade 6 chef who works as a casual on Saturday for 6 hours and Sunday for 6 hours.
Calculate his wages.
Calculate the wages of a casual grill cook who works the following hours:
M
3
8
Con is employed as a casual kitchen hand. One week he worked 3 hours on Saturday, 4 hours
on Sunday and the remaining hours were all worked in the period Monday to Friday. If he
received $226.50 for the weeks work, how many hours did he work from Monday to Friday?
The table below shows the Restaurant Award rates for Grade 1 juniors.
Juniors: Casual $ per hour
Age (years)
Mon.Fri.
Sat.
Sun.
17
18
19
20
8.92
10.07
11.51
12.95
11.15
12.58
14.38
16.18
13.38
15.10
17.26
19.42
Use the table above to answer questions 912.
How much would a 17-year-old casual employee earn for working:

a 8 hours from Monday to Friday
b 4 hours on Saturday
c 6 hours on Sunday
d 6 hours Monday to Friday and 5 hours on Saturday
e 10 hours Monday to Friday, 4 hours on Saturday and 3 hours on Sunday?
10
a Ben is 18 years old and does casual work in a coffee shop. How much does he earn for
working 4 hours on Saturday and 6 hours on Sunday?
b Lara is 20 years old; how much would she earn for working the same hours as Ben?
11
Sarah and Ella work in a caf. Sarah is 17 years old and Ella is 18 years old. One week they
both work the same shifts, as shown below.
M
How much more than Sarah does Ella earn for this week?
12
Jenny is 19 years old and does casual work as a waitress on Friday, Saturday and Sunday
nights. One week she worked 5 hours on Friday night, 6 hours on Saturday night and was paid
$204.24 for the week. How many hours did she work on Sunday night?
G. NET EARNINGS
The total amount earned by an employee is called gross income. However this is not the amount of money that
the employee actually takes home because deductions are made.
The most common deductions are federal income tax, health insurance and superannuation. The amount
actually received, after deductions, is called net earnings or take-home pay.
Net Earnings = Gross Income Deductions
Example 1
Julie earns $890 per week. The deductions from her salary each week are:
tax $265.83, health insurance $43.59 and superannuation $42.70.
Calculate her net earnings each week.
Total deductions = $265.83 + $43.59 + $42.70
= $352.12
Net Earnings = $890 $352.12
= $537.88
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Exercise 11G
1
Patricia earns $940 per week. The deductions from her salary each week are: tax $280.78,
health insurance $37.62 and superannuation $56.40. Calculate her net earnings each week.
David earns $760 per week. The deductions from his salary each week are: tax $212.80,
health insurance $32.40 and superannuation $30.40. Calculate his net earnings each week.
Sue earns $43.80 per hour and works a 36-hour week. The deductions from her wages each
week are: tax $536.11, superannuation $94.61 and health insurance $51.25. She pays union
fees of $7.60 and also has $50 per week paid directly into an investment account. Calculate
her take-home pay each week.
Yuchen earns $63.70 per hour and works a 38-hour week. The weekly deductions from her
wages include: tax $871.42, superannuation $217.85 and health insurance $44.90. She also
pays $5 per week to her favourite charity and has $70 per week paid into a special savings
account. Calculate her take-home pay.
Jamess gross salary is $1230 per week. His employer deducts 31% of his gross earnings for
tax and he contributes 9% of his gross income into a superannuation fund. His health fund
contributions are $39.99 and professional association fees are $13.20 per week. Calculate
his net weekly earnings.
H. BUDGETS
A budget is a financial plan for the future. It is a means by which you can save for future purchases and avoid
over-spending. To prepare a budget you need to determine your expected income and estimate your expected
expenses. Your income needs to be larger than your expenses if you are to live within your means.
To prepare a budget, for a given time period (e.g. week, month, year):
calculate your total income
estimate your total expenses
calculate income minus expenses
adjust income or expenses if necessary.
Example 1
Karen has just started work and still lives at home with her parents. Her weekly
take-home salary is $480. Each week she pays $110 for board, $49 for fares and
$35 for lunches. She spends $120 per week on entertainment, $95 per fortnight on
personal items and $330 per month on clothes.
a Prepare an annual budget for Karen.
b Karen wants to go on an overseas holiday in 3 years time. The cost of the holiday
is $7899. Determine whether or not Karen will be able to take her holiday.
c If Karen will not have sufficient money to take her holiday, how could she adjust
her budget so that she would be able to afford the holiday?
Salary
($480 52) = $24 960
Board
($110 52) = $5720
Fares
($49 52) = $2548
Lunches
($35 52) = $1820
Entertainment
($120 52) = $6240
Personal items ($95 26) = $2470
Clothes
($330 12) = $3960
Total
= $22 758
Income Expenses = $2202
Karen has an excess of income over expenses so she will be able to live
satisfactorily on this budget and save some money.
b If Karen saves all her money, then in 3 years she will have $2202 3 = $6606.
She is $7899 $6606 = $1293 short of her target.
c Karen must either increase her income or decrease her expenses by at least
($1293 3 =) $431 per year.
She could increase her income by finding employment with a higher salary or
getting a second job. She could decrease her expenses by, for example, reducing
her spending on clothes to $290 per month. She would then save ($40 12 =) $480
per year on expenses. Or, if she reduced her spending on entertainment to $110
per week, she would save ($10 52 =) $520 per year. She would then be able to
afford to take the holiday.
a Income
Expenses
Exercise 11H
1
Naomi lives at home with her parents. Her weekly take-home salary is $590. Each week she
pays $100 for board, $53 for fares and $42 for lunches. She spends $150 per week on
entertainment, $84 per fortnight on personal items, $380 per month on clothes.
a Prepare an annual budget for Naomi.
b Naomi wants to go on an overseas holiday in 3 years time. The cost of the holiday is
$12 550. Determine whether or not Naomi will be able to take her holiday.
Matthews net earnings are $540 per week. He shares a house for which he pays $120 per
week rent. Each week he spends $110 on food, $145 on entertainment and $25 on personal
items. The loan repayments on his car are $380 per month. He spends $45 per week on petrol
and the six-monthly service is $380. Annual registration and insurance amount to $1148.
His mobile phone costs him $24 per month.
a Prepare an annual budget for Matthew.
b How could Matthew adjust his budget so that he can live within his means?
George is a full-time TAFE student. He receives an allowance of $320 per fortnight from the
government and averages earnings of $120 per week from his part-time job. His expenses
are: rent $320 per month, food $90 per week, phone $110 per quarter, entertainment
$70 per week, books $350 per year.
a Prepare an annual budget for George.
b George has already saved the money to buy a car. He estimates that it would cost him
$30 per week for petrol, $80 per month for maintenance and $840 per year for
registration and insurance. Can George afford to own and run a car?
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332
Kate and Robert want to prepare a budget for next year and have gathered the following
information.
Income:
Kates take-home pay is $490 per week and Robert clears $380 per week.
Interest of $230 from investments is expected in February and August of next
year.
Expenses: Home loan repayments, $980 per month
Food, $160 per week
Electricity, $480 each quarter
Telephone, $110 per month
Council rates, $340 each quarter
Water rates, $186 per quarter
Car registration and insurance, $780 per year
Comprehensive car insurance, $810 per year
Car loan repayments, $108 per week
Car running expenses, average $190 per month
Clothing, average $350 per month
Personal items, $45 per week
a Prepare an annual budget for Kate and Robert.
b In order to reduce the cost of their loans, Kate and Robert wish to increase their loan
repayments. Can they afford to do this? What advice would you give Kate and Robert?
I. SIMPLE INTEREST
When investing money in a financial institution, such as a bank, the bank pays for the use of your money. This
payment by the bank is called interest and is calculated as a percentage of the amount invested. Similarly, when
you borrow money a charge is made for the use of the banks money. This charge is also called interest and is
calculated as a percentage of the amount borrowed.
There are two methods of calculating the interest: simple interest and compound interest. If the interest is
calculated as a fixed percentage of the original amount invested (or borrowed), then it is called simple interest.
Example 1
Calculate the simple interest if $8000 is invested for 3 years at 4.5% p.a.
Interest for 1 year = 4.5% of $8000
= 0.045 $8000
= $360
Interest for 3 years = $360 3
= $1080
If $P is invested for T years at r % p.a. then the simple interest, I, can be found using the formula:
I = PRT
r
where P is called the principal, R is called the interest rate p.a. R = -------- and T is the time in years.
100
Example 2
Use the simple interest formula to calculate the simple interest earned on an
investment of $10 800 at 3.9% p.a. for 5 years.
I = PRT
= $10 800 0.039 5
= $2106
Exercise 11I
1
Calculate the simple interest if $7000 is invested for 2 years at 5% p.a.
Calculate the simple interest if $12 000 is invested for 4 years at 3% p.a.
Complete the following table.

Principal
Annual interest rate
Time invested (years)
$5 800
$15 000
$24 000
$6 500
$18 000
$9 300
$6 000
7%
3.5%
4.5%
5%
2.8%
3.4%
3%
4
3
5
6
2
4
3
Simple interest
Example 3
Calculate the amount to which $7000 will grow in 3 years if invested at 6.5% p.a.
simple interest.
Interest = $7000 0.065 3
= $1365
Amount after 3 years = $7000 + $1365
= $8365
Calculate the amount to which $9000 will grow in 3 years if invested at 6.5% p.a. simple
interest.
Calculate the amount to which $20 000 will grow in 5 years if invested at 4% p.a. simple
interest.
If I invest $13 500 at 7.4% p.a. simple interest, how much will I have in 4 years time?
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334
Example 4
Calculate the simple interest earned on $6000 at 8% p.a. for 16 months.
16
The number of years the money is invested = ------ , hence
12
16
Interest = $6000 0.08 -----12
= $640
7
Calculate the simple interest earned on the following investments:

a $5000 at 9% p.a. for 18 months
b $7000 at 8% p.a. for 15 months
c $12 500 at 10% p.a. for 9 months
d $3800 at 12% p.a. for 27 months
e $24 000 at 7.8% p.a. for 45 months
Example 5
Rene invested $4700 at 6% p.a. simple interest and earned $1128 in interest. For
how long did he invest his money?
Interest for 1 year = 0.06 $4700
= $282
No. of years invested = $1128 $282
=4
i.e. Rene invested his money for 4 years.
8
Harry invested $13 000 at 6% p.a. simple interest and earned $4680 in interest. For how long
did he invest his money?
Joy invested $2800 at 3.5% p.a. simple interest and earned $490 in interest. For how long
did she invest her money?
Example 6
Colin invested $4000 for 5 years and earned $700 in interest. What was the
annual rate of simple interest?
Interest for 1 year = $700 5
= $140
140
Annual interest rate = ------------- 100%
4000
= 3.5%
10
Kim invested $6000 for 5 years and earned $2100 in interest. What was the annual rate of
simple interest?
11
Lauren invested $17 000 for 4 years and earned $3128 in interest. What was the annual rate
of simple interest?
J. PURCHASING GOODS BY CASH

When paying cash to purchase goods, the cost is rounded to the nearest 5 cents.
Example 1
How much would you actually pay in cash to purchase goods that cost:
a 87 cents
b $2.43
c $2.99?
Rounding off to the nearest 5 cents, you would pay

a 85 cents
b $2.45
c $3.00
Exercise 11J
1
How much would you actually pay in cash to purchase goods that cost:
a 76c
b $5.28
c $2.79
d $7.31
e $3.97
g $16.23
h $21.99
i $54.85
j $39.14
k $17.36
Calculate the change given when:
a $10 is offered to pay for goods worth $5.83
c $10 is offered to pay for goods worth $8.22
e $20 is offered to pay for goods worth $18.36
g $50 is offered to pay for goods worth $28.57
b
d
f
h
f
l
$8.52
$69.98
$10 is offered to pay for goods worth $4.99

Example 2
An electrical store offers a discount of 12% for cash purchases.
Find the cash price of a television set marked as $799.
Discount = 12% of $799
or
Price = 88% of $799
= 0.12 $799
= 0.88 $799
= $95.88
Price = $799 $95.88
= $703.12
= $703.12
Rounding the discounted price to the nearest 5 cents, the cash price is $703.10.
An electrical store offers a discount of 12% for cash purchases. Find the cash price of a
sound system marked at $479.
A builders hardware store offers a discount of 6% for cash purchases. Find the cash price
for goods worth:
a $147
b $463
c $224
d $180.56
e $68.99
List some advantages and disadvantages of using cash to purchase goods.
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336
K. USING CREDIT CARDS

A credit card is a convenient method for purchasing and paying for goods. You can pay for the goods later,
you dont need to carry large amounts of cash, you can take advantage of sales, and a monthly statement of
purchases is provided.
The financial institution issuing the card charges an annual fee and if the balance owing at the end of each
month is paid within the interest-free period (which varies from 0 to 55 days) then no further costs are involved.
However, if any balance is owing after the interest-free period has finished then there is an initial charge equal
to one months interest on the balance outstanding and, in addition, an interest charge compounded daily from
the end of the interest free period.
There is a minimum payment that must be made each month.
It is also possible to obtain cash advances up to a certain limit. In this case interest is charged daily from the
time the cash is withdrawn.
Exercise 11K
Use the statement on the previous page to answer the following questions.
1
What is the:
a date the statement period starts and ends
c daily interest rate for purchases
e available credit
g minimum payment that must be made
b annual interest rate for purchases

d credit limit
f date by which payment must be made
Calculate the:
a total purchases made
b total credits (CR)
c Opening Balance + Purchases + Financial Institution Tax Credits. Is this the closing
balance?
What percentage is the minimum repayment due of the closing balance?
List some advantages and disadvantages of using credit cards to purchase goods.
L. LAY-BY
Some retail stores allow customers to purchase goods by a method called lay-by. Under a lay-by agreement a
deposit is paid and the goods are put aside. The remainder of the cost price must be paid off within a given period
of time. The customer cannot collect the goods until the balance is completely repaid, but no interest is charged.
Example 1
Nick decides to lay-by a tool set costing $849 and pays a deposit of $100. Over
the next 3 months he makes repayments of $150, $85, $90, $160, $120 and $70.
How much more does he have to repay to be able to collect the tool set?
Total amount repaid = $100 + $150 + $85 + $90 + $160 + $120 + $70
= $775
Balance = $849 $775
= $74
Nick still has $74 to pay before he can collect the tool set.
Exercise 11L
1
Ben decides to lay-by an electric saw costing $569 and pays a deposit of $120.Over the next
3 months he makes repayments of $60, $45, $90, $70, $70 and $80. How much more does
he have to repay to be able to collect the saw?
Zoe lay-bys a bike costing $225 for her sons birthday and pays a deposit of $60. Each week
for the next 5 weeks she makes payments of $25. How much more does she have to repay to
be able to collect the bike?
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338
Example 2
Isabella lay-bys a dress costing $324 and pays a deposit of $50. She wants to
collect the dress in approximately 3 months time to wear to a wedding. If she
pays off the balance by making 3 equal monthly instalments, calculate:
a the balance to be repaid
b the amount of each monthly instalment
a Balance = $324 $50

= $174
b Monthly instalment = $174 3

= $58
Martine lay-bys a dress costing $485. She pays a deposit of $80 and pays off the balance
by making 4 equal monthly instalments. Calculate:
a the balance to be repaid
b the amount of each monthly instalment
Yvonne lay-bys a new electric oven costing $778. She is required to pay a 10% deposit and
repay the balance by 12 equal weekly instalments. Calculate the:
a deposit
b balance to be repaid
c amount of each weekly instalment
Josh lay-bys a new DVD player costing $456. He is required to pay a 15% deposit and repay
the balance by 6 equal fortnightly instalments. Calculate the:
a deposit
b balance to be repaid
c amount of each fortnightly instalment
List some advantages and disadvantages of using the lay-by method to purchase goods.
M. BUYING ON TERMS
Buying on terms
is sometimes
called hire
purchase.
When an item is bought on terms a deposit is paid and the item

is received immediately. The balance of the price is borrowed
and this balance plus simple interest is repaid by equal
instalments over a fixed term.
Example 1
A refrigerator costing $2998 can be bought on terms for $299 deposit and
24 monthly instalments of $139.45.
a Calculate the total cost of buying the refrigerator on terms.
b How much would you save by paying cash?
a Total cost = $299 + 24 $139.45
= $3645.80
b Amount saved by paying cash = $3645.80 $2998
= $647.80
Exercise 11M
1
A refrigerator costing $2599 can be bought on terms for $399 deposit and 24 monthly
instalments of $115.50.
a Calculate the total cost of buying the refrigerator on terms.
A laptop computer costing $2298 can be bought on terms for $229 deposit and 18 monthly
repayments of $135.60.
a Calculate the total cost of buying the computer on terms.
A home theatre system costing $1598 can be bought on the following terms: 10% deposit and
48 weekly instalments of $37.15.
a Calculate the total cost of buying the system on terms.
A hi-fi sound system costing $879 can be bought on the following terms: deposit 15% and
26 fortnightly repayments of $39.98.
a Calculate the total cost of buying the system on terms.
Example 2
A computer costing $3498 can be bought on terms for $300 deposit and
36 monthly repayments of $124.17.
a
b
c
d
e
Calculate the total cost of buying the computer on terms.

Find the total amount of interest charged.
Calculate the amount of interest paid annually.
What was the amount of money borrowed?
Calculate the annual rate of interest charged.
a Total cost = $300 + 36 $124.17

b Interest = $4770.12 $3498
= $4770.12
= $1272.12
c Annual interest = $1272.12 3
= $424.04
d Amount borrowed = Balance owing after paying the deposit
= $3498 $300
= $3198
e Annual interest rate =
=
annual interest
100%
amount borrowed
$424.04
100%
$3198
= 13.3%
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340
A camera costing $1499 can be bought on terms for $200 deposit and 24 monthly repayments
of $74.69.
a Calculate the total cost of buying the camera on terms.
b Find the total amount of interest charged.
c Calculate the amount of interest paid annually.
d What was the amount of money borrowed?
e Calculate the annual rate of interest charged.
A television costing $5890 can be bought on terms for $300 deposit and 36 monthly
repayments of $199.53.
a Calculate the total cost of buying the computer on terms.
A dining room suite was advertised for $5990 or $500 deposit and 48 monthly repayments
of $187.58.
a Calculate the total cost of buying the dining room suite on terms.
Example 3
A wide-screen plasma TV set can be bought for $7998 cash or on the following
terms: deposit $799, the balance to be repaid over 2 years by 24 equal monthly
repayments. Simple interest is charged on the balance at 12% p.a. If the TV is
bought on terms calculate:
a the balance owing after the deposit is paid
b the interest charged on the balance owing
c the monthly repayment
a Balance owing = $7998 $799
b Interest = $7199 0.12 2
= $7199
= $1727.76
c Balance owing + Interest = $7199 + $1727.76
= $8926.76
Monthly repayment = $8926.76 24
= $371.95 (to the nearest cent)
8
Peter buys a second-hand car advertised for $9600 on the following terms: deposit $2000,
the balance to be repaid over 2 years by equal monthly repayments. Simple interest is
charged at 12% p.a. Calculate:
a the balance owing
Angela buys a car advertised for $12 900 on the following terms: deposit $3000, the balance
to be repaid over 3 years by equal monthly repayments. Simple interest is charged at 9% p.a.
Calculate:
a the balance owing
10
Adrienne buys a washing machine advertised for $4990 on the following terms: deposit 10%
and the balance repaid over 2 years by equal monthly repayments. Simple interest is charged
at 15% p.a. Calculate:
a the deposit
b the balance owing
c the interest charged on the balance owing
d the monthly repayment
11
Robin buys a new car advertised for $19 900 on the following terms: deposit 15%, the
balance to be repaid over 4 years by equal monthly repayments. Simple interest is charged at
11.9% p.a. Calculate:
a the deposit
b the balance owing
c the interest charged on the balance owing
d the monthly repayment
12
List some advantages and disadvantages of purchasing goods on terms.
Investigation 2
WM: Applying Strategies, Reasoning
Monthly repayments
The spreadsheet below calculates the monthly repayment when an item is bought on terms.
A
1 Item
Cash
Deposit Interest
Repayment
Balance Interest on Monthly
price ($)
rate (% p.a.) period (years) owing
balance
Repayment
2 Computer
2998
298
12
3 TV
1899
189
15
4 Furniture
4672
250
11.6
5 Air
conditioner
7659
1000
14.2
6 Refrigerator
3628
628
9.9
Copy the spreadsheet.
In Cell F2 type the formula = B2 C2. This is the balance owing after the
deposit is paid.
In Cell G2 type the formula = F2*D2/100*E2. This is the amount of interest

charged on the balance.
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342
In Cell H2 type the formula = (F2 + G2)/(E2*12). This is the monthly repayment.
If the computer was paid off over 3 years instead of 2:

a What would be the monthly repayment? b How much more interest would be paid?
(Hint: Change repayment period to 3 and use the arrow key to move right.)
Try changing the repayment period and/or the interest rate for the other items to investigate
the effect on the monthly repayment and the amount of interest paid.
Use some advertisements from newspapers or magazines to check the advertised monthly
repayment for several items. If there is a difference, investigate for hidden charges.
N. DEFERRED PAYMENT
Many advertisements make statements such as No repayments for 12 months or Pay nothing until next June.
Under these arrangements the goods may be taken immediately the finance contract is approved and no
payment needs to be made for the agreed period of time.
This type of financial arrangement is known as a deferred payment scheme.
Example 1
Michael sees a television set
advertised as shown opposite.
When Michael approaches the
retailer to buy the television, he
is given the conditions opposite
for the deferred payment scheme.
a Calculate the total amount Michael
would have to pay for the television
under this scheme.
b Calculate the monthly instalments.
$2498
NO
DEPOSIT
NO DEPOSIT
NO REPAYMENTS
NO
REPAYMENTS
FOR 1212
MONTHS
FOR
MONTHS
(Conditions apply.)
Conditions: (i) Pay nothing for 12 months.

(ii) Balance plus interest to be repaid by
equal monthly instalments over the
two years following the interest-free period.
(iii) Simple interest of 16% p.a. is charged for
the 3-year period of the agreement.
(iv) Establishment fee of $110.
(v) Account service fee of $2.95 per month
for the 3-year period of the agreement.
a Michael must pay interest on $2498 for 3 years.

Interest = $2498 0.16 3
= $1199.04
Total cost = Price + Interest + Establishment fee + Account service fee
= $2498 + $1199.04 + $110 + $2.95 36
= $3913.24
b Michael has to repay this amount by 24 equal instalments.
Monthly instalment = $3913.24 24
= $163.05
Exercise 11N
1
$2999
A computer is advertised as shown opposite.

a Calculate the total amount you
would have to pay for the computer
under this scheme.
NO DEPOSIT
NO REPAYMENTS
FOR 12 MONTHS
(Conditions apply.)

(ii) Balance plus interest to be repaid by equal monthly instalments
over the two years following the interest-free period.
(iii) Simple interest of 16% p.a. is charged for the 3-year period of the
agreement.
(v) Account service fee of $2.95 per month for the 3-year period of
the agreement.
A second-hand car is advertised as follows.
$8599
No Deposit
No Repayments for 12 Months
a Calculate the total amount you

would have to pay for the car
under this scheme.
b Calculate the monthly
instalments.
(Conditions apply.)
(ii) Balance plus interest to be repaid by equal monthly instalments over the
three years following the interest-free period.
(iii) Simple interest of 15% p.a. is charged for the 4-year period of the agreement.
(v) Account service fee of $2.55 per month for the 4-year period of the agreement.
A sofa bed is advertised for $1598 with no deposit and no repayments for 6 months. The
conditions of the agreement are: (i) Pay nothing for 6 months. (ii) Balance plus interest to be
repaid by equal monthly instalments over the 12 months following the interest free period.
(iii) Simple interest of 1.5% per month is charged for the 18 months of the agreement.
(iv) Establishment fee of $135. (v) Account service fee of $2.85 per month, for the 18 month
period of the agreement
a Calculate the total amount you would have to pay for the bed under this scheme.
343
344
O. LOANS
To purchase expensive items some people prefer to organise a personal loan through a bank, credit union or
other financial institution. Personal loans often cost less than other forms of payment, such as buying on terms
or deferred payment schemes, because of lower interest rates and lower fees. Banks have tables from which
the monthly repayments can be determined. For example, the table below shows the monthly repayments of
principal plus interest on each $1000 borrowed for various interest rates.
Monthly repayments on each $1000 borrowed
Annual interest rate
Loan term
(months)
10.0%
10.5%
11.0%
11.5%
12.0%
12.5%
13.0%
13.5%
14.0%
12
87.9159 88.1486 88.3817 88.6151 88.8488 89.0829 89.3173 89.5520 89.7871
18
60.0571 60.2876 60.5185 60.7500 60.9820 61.2146 61.4476 61.6811 61.9152
24
46.1449 46.3760 46.6078 46.8403 47.0735 47.3073 47.5418 47.7770 48.0129
30
37.8114 38.0443 38.2781 38.5127 38.7481 38.9844 39.2215 39.4595 39.6984
36
32.2672 32.5204 32.7387 32.9760 33.2143 33.4536 33.6940 33.9353 34.1776
42
28.3168 28.5547 28.7939 29.0342 29.2756 29.5183 29.7621 30.0071 30.2532
48
25.3626 25.6034 25.8455 26.0890 26.3338 26.5800 26.8275 27.0763 27.3265
54
23.0724 23.3162 23.5615 23.8083 24.0566 24.3064 24.5577 24.8104 25.0647
60
21.2470 21.4939 21.7424 21.9926 22.2444 22.4979 22.7531 23.0098 23.2683
Example 1
Use the table above to calculate the monthly repayments on a loan of $8300 for
4 years at 13%.
From the table, the monthly repayment for each $1000 borowed = $26.8275
Monthly repayments for $8300 = $26.8275 8.3
= $222.67 to nearest cent
Exercise 11O
1
Use the table above to calculate the monthly repayments on a loan of $9000 for 3 years
at 12%.
Use the table above to calculate the monthly repayments on loans of:
a $85 000 for 2 1--2- years at 10.5%
b $67 000 for 5 years at 11%
c $14 600 for 3 1--2- years at 13.5%
e $12 450 for 42 months at 11.5%
d $16 000 for 54 months at 14%
Example 2
a Use the table to calculate the monthly repayments on a loan of $6900 for 3 years
at 12.5%.
b Calculate the total cost of the loan if there is a loan application fee of $180.
a Monthly repayment = $33.4536 6.9
= $230.83
b Total cost of loan = $230.83 36 + $180
= $8489.87
a Use the table to calculate the monthly repayments on a loan of $7000 for 3 years at 11%.
a Use the table to calculate the monthly repayments on a loan of $15 500 for 4 years
at 13.5%.
Calculate the cost of the following loans. (Calculate the monthly repayment first.)
a $5000 for 3 1--2- years at 12%, loan application fee $300
b $12 000 for 4 1--2- years at 14%, loan application fee $200
c $8500 for 2 years at 10.5%, loan application fee $260
d $9400 for 60 months at 11.5%, loan application fee $210
e $18 000 for 42 months at 10%, loan application fee $190
Use the table given for questions 68.

6
Terry borrowed $20 000 at 11.0% p.a. His monthly repayments were $654.77. Over what
period of time did he borrow the money?
Natasha borrowed $18 000 over 4 1--2- years. The monthly repayments were $446.59. What was
the interest rate charged?
Bill took out a loan over 3 years at 12.5% p.a. His monthly repayments were $802.89. How
much money did Bill borrow?
345
346
P. COMPARING PRICES
Example 1
Which is the better buy, 3 kg of apples for $13.38 or 5 kg for $21.60?
Method 1
Method 2
Find the cost per kilogram:

3 kg for $13.38 = ($13.38 3) per kg
= $4.46 per kg
5 kg for $21.60 = ($21.60 5 ) per kg
= $4.32 per kg
5 kg for $21.60 is the better buy because the cost per kilogram is
cheaper.
Find the amount of apples per dollar:
3 kg for $13.38 = (3 13.38) kg for $1
= 0.224 kg for $1
5 kg for $21.60 = (5 21.6) kg for $1
= 0.231kg for $1
5 kg for $21.60 is the better buy because you get more apples per dollar.
Exercise 11P
1
Which is the better buy:

a 3 kg of oranges for $4.00 or 5 kg for $6.60?
b 2 kg of meat for $15.96 or 3 kg for $23.97?
c 1.5 litres of soft drink for $2.70 or 2 litres for $3.50?
d a 350 g packet of cereal for $2.20 or a 575 g packet for $3.69?
e a 150 mL bottle of sauce for $2.29 or a 750 mL bottle for $10.99?

a Tuna: 95 g tin for $1.33, 185 g tin for $2.17, 425 g tin for $3.50
b Cordial: 750 mL for $1.12, 2 L for $3.10, 4 L for $6.06
c Sandwich spread: 115 g jar for $1.43, 175 g jar for $1.96, 235 g jar for $2.49
d Chocolate: 55 g block for $0.98, 250 g block for $2.58, 375 g block for $3.94
e Milk Flavouring: 375 g tin for $2.69, 750 g tin for $5.29, 1.25 kg tin for $8.28
Harrys Car Hire charges $28 per day with no limit on the number of kilometres travelled to
hire a new Toyota Corolla. Rays Car Rental charges $20 per day plus 8 cents per kilometre
travelled to rent the same car. Which company is cheaper if you are likely to travel, each day:
a 80 km
b 100 km
c 150 km?
To hire a new Holden Commodore each day, Bobs Rentals charges $45 plus 7 cents per
kilometre travelled. Sophies Rentals charges $48 per day plus 5 cents per kilometre
travelled. Which company is cheaper if you are likely to travel, each day:
a 100 km
b 300 km
c 150 km?
On savings accounts, Bobs Bank charges a management fee of $5.50 per month. The first
five transactions are free and then a fee of 28 cents per transaction is charged. Bills Bank
charges a monthly management fee of $6.00 plus 9 cents per transaction. Which bank is
cheaper to use if your average number of monthly transactions is:
a 5
b 10
c 15?
The Mobile Phone Company offers two plans. Plan A has a connection fee of $12 per month
and calls cost 21 cents/30 seconds. Plan B has a connection fee of $15 plus call charges of
16 cents/30 seconds. Which plan would be cheaper, and by how much, if your expected calls
per month were:
a 20 minutes
b 30 minutes
c 50 minutes?
Terrys Telecommunications has two mobile phone plans. The Starnet Plan has a monthly fee
of $25, 50 free calls then 45 cents/call. The Supernet Plan has a monthly fee of $35, 100 free
calls and then 35 cents/call. Which plan is cheaper, and by how much, if the expected number
of calls per month total:
a 50
b 100
c 200?
Q. GOODS AND SERVICES TAX (GST)

A federal tax, known as the GST, is applied to most goods and services in Australia. It is calculated at the rate of
10% of the purchase price of the goods or services. The price excluding the GST (i.e. the price before the GST is
added) is written price excluding GST and the price including the GST (i.e. the price after the GST is added) is
written price including GST.
Example 1
Calculate the GST and the price including GST on a camera with a listed price of
$710, price excluding GST.
GST = 10% of $710
= 0.1 $710
= $71
Price including GST = $710 + $71
= $781
Exercise 11Q
1
Calculate the GST and the price including GST on the following items:
a microwave oven $440, price excluding GST
b computer $3690, price excluding GST
c TV repairs $258, price excluding GST
d DVD player $397, price excluding GST
e plumbers bill for services $1800, price excluding GST
347
348
Example 2
Calculate the price including GST on a mobile phone listed as $299, price
excluding GST.
Price including GST = list price + 10% of the list price
= 110% of the list price
= 1.10 $299
= $328.90
Calculate the price including GST on the following items whose price, excluding GST, is given.
a car battery $95, price excluding GST
b ticket to Rugby Final $225, price excluding GST
c bottle of wine $17, price excluding GST
d printer repairs $336, price excluding GST
e electricians bill $457, price excluding GST
Example 3
Calculate the GST included on a television set advertised for $899, price
including GST.
Price excluding GST + GST = $899
i.e. price excl. GST + 10% of price excl. GST = $899
i.e. 110% of price excl. GST = $899
1.1 price excl. GST = $899
price excl. GST = $899 1.1
= $817.27
GST = $899 $817.27
= $81.73
Calculate the GST included in the price of the following items:

a TV $1189, price including GST
b lounge suite $4970, price including GST
c BBQ chicken $10.89, price including GST
d perfume $148, price including GST
e dress $124, price including GST
Example 4
Calculate the GST included on a television set advertised for $899, price
including GST.
Note that example 3 above could have been calculated as follows.
110% of price excl. GST = $899
11
i.e. ------ price excl. GST = $899
10
11
price excl. GST = $899 -----10
10
= ------ $899
11
1
Hence GST = ------ $899
11
= $81.73
This leads to the GST Rule of Thumb which
1
states that GST = ------ of price including GST.
11
Use the GST Rule of Thumb to check

your answers to question 3.
Find the missing amounts in the following.

a
Tax Invoice
Services rendered = $850
GST
=
Total including GST =
c Tax Invoice
Services rendered =
GST
= $48.80
Total including GST = $536.80
Tax Invoice
Taxable items
Shirt
$69.95
Tie
$29.95
Total including GST = $99.90
GST included in total =
d Tax Invoice
Taxable items
5 CDs @ $32.90 including GST =
GST included in total
=
349
350
non-calculator activities
1
David earns $300 per week. How much does he earn per:
a fortnight
b year
c month?
Convert a salary of $43 800 p.a. to the equivalent salary per month.
Alice works a 35-hour week and is paid $20 per hour. How much does she earn for a week in
which she works an additional 4 hours at time-and-a-half and 1 hour at double time?
Katya earns $1.20 for each lamp she makes. If on average she can finish 10 lamps per hour
and she works a 36-hour week, calculate her average weekly earnings.
Maria sells household cleaners. She is paid a commission of 5% of sales. How much does she
earn in a week in which her sales are $8000?
Jacks gross weekly income is $847. The deductions from his salary each week are:
tax $206, superannuation $51.60 and health insurance $26.53. Calculate his net earnings
each week.
A sports goods store offers a discount of 10% for cash purchases. Find the cash price of a
basketball marked as $89.
Alex lay-bys a tool set costing $638 by paying a deposit of $125. Over the next 3 months he
makes repayments of $100, $120 and $185. How much more does he have to repay in order
to collect the tool set?
A sound system can be bought for $589 cash or on the following terms: deposit $189 and
24 equal monthly repayments of $23.
a What is the total cost of the sound system if it is bought on terms?
b How much interest would be paid?
10
Calculate the GST included in the price of a DVD player costing $187, price including GST.
Language in Mathematics
List four different ways in which people are paid for providing their labour or services.
Explain the meaning of:

a overtime
b bonus
c holiday loading
Use the following words or phrases in a sentence:

gross income, deductions, net earnings
What is the difference in meaning between the words principal and principle?
The following words have a mathematical meaning as well as other meanings in ordinary
English. Use a dictionary to complete the table.
Word
Mathematical meaning
351
Other meaning
credit
deposit
balance
6
Complete the following words from this chapter by replacing the vowels.
a f rtn ghtly
b rtnr
c b dg t
d d sc nt
Three of the words in the following list have been spelt incorrectly. Rewrite them with the
correct spelling: peacework, purchase, cash, survice, loan, invesment.
Glossary
balance
cash
deductions
excluding
gross income
including
labour
overtime
repayment
simple interest
bonus
commission
deferred payment
expenses
GST
income
lay-by
piecework
retainer
take-home pay
budget
compare
deposit
flat interest
holiday loading
instalment
loan
principal
salary
time-and-a-half
CHECK YOUR SKILLS
buying on terms
credit
discount
fortnight
hire purchase
investment
net earnings
purchase
service
wages
Samantha earns $326.80 per week. This is equivalent to a yearly salary of:
A $15 686.40
B $16 340
C $16 993.60
D $17 320.40
A salary of $33 228 p.a. is not equivalent to:

A $639 per week
B $2556 per fortnight
C $2769 per month
D $8307 per quarter
352
Garry earns $342 per week. This is equivalent to a monthly income of:
A $1368
B $1470.60
C $1482
D $1539
Sally works a 36-hour week and is paid $14.80 per hour. Her total wages for a week in which
she works an additional 5 hours at time-and-a-half and 3 hours at double time is:
A $732.60
B $651.20
C $710.40
D $769.60
Bianca earns $560 per week. She is entitled to 4 weeks annual recreation leave and receives
an additional holiday loading of 17.5%. Her total holiday pay for 4 weeks is:
A $2240
B $392
C $2338
D $2632
David is paid $0.37 for each tree that he plants. If he can plant an average of 18 trees
per hour and he works a 36-hour week, then his average weekly earnings are:
A $6.66
B $13.32
C $239.76
D $479.52
Tony is a real estate agent. He charges the following commission for selling home units:
3% of the first $150 000 and 1.5% for the remainder of the selling price. His commission
for selling a home unit for $220 000 would be:
A $6600
B $5550
C $3300
D $9900
Casual $ per hour
8
Waiter
Mon.Fri.
Sat.
Sun.
14.92
18.65
22.38
The table shows the award wages for a waiter employed as a casual. The wages of a casual
waiter who works 10 hours Monday to Friday, 4 hours on Saturday plus 5 hours on Sunday is:
A $335.70
B $283.48
C $317.05
D $350.62
9
10
Stephen earns $487 per week. The deductions from his salary each week are tax $139,
superannuation $42, and health insurance $31.80. His net pay for the week is:
A $699.80
B $421.80
C $358.20
D $274.20
The simple interest on $3480 at 5.5% p.a. for 4 years is:
A $7656
B $191.40
C $765.60
D $4245.60
11
Michelle invested $5000 for 3 years and earned $825 in interest. The annual rate of interest was:
A 5.5%
B 16.5%
C 33.3%
D 3.33%
12
A camera store offers a discount of 12% for paying cash. The cash price of a camera marked
as $459 is:
A $55.08
B $55.10
C $403.92
D $403.90
13
The method of purchasing goods by which a deposit is paid, the balance is paid off over a
short period of time, no interest is charged but the goods cannot be taken until full payment
has been made is called:
A time payment
B hire purchase
C deferred payment D lay-by
14
A refrigerator costing $1395 can be bought on terms for $295 deposit and 24 monthly
instalments of $61. The total cost of buying the refrigerator on terms would be:
A $2859
B $1759
C $1464
D $2564
15
A television set costing $1089 can be bought on the following terms: deposit $289 and the
balance to be repaid over 2 years by equal monthly instalments. Simple interest is charged
at 13% p.a. If the TV is bought on these terms, the monthly repayment would be:
A $42
B $57.17
C $37.67
D $51.27
16
A television set is advertised as shown

opposite.
The total amount you would have to pay
for the television under this scheme is:
A $1598
B $1853.68
C $2365.04
D $2109.36
$1598
NO DEPOSIT
NO REPAYMENTS
FOR 12 MONTHS
(Conditions apply.)

(ii) Balance plus interest to be repaid by equal monthly instalments
over the two years following the interest free period. (iii) Simple interest
of 16% p.a. is charged for the 3-year period of the agreement.
17
Using the table on page 344, the monthly repayment on a loan of $24 000 over 2 1--2- years at
11.5% is, to the nearest cent:
A $38.51
B $924.30
C $696.82
D $1124.17
18

A 350 mL for $2.80
B 750 mL for $5.25
19
C 2 L for $15.00
D 5 L for $39
The price of a TV, including GST, is $583. The amount of GST included is:
A $58.30
B $53
C $524.70
D $530
If you have any difficulty with these questions, refer to the examples and questions in the sections
listed in the table.
Question
Section
13 4, 5
B
353
10, 11 12
I
13 14, 15 16
17
18
19
354
REVIEW SET 11A

1
David earns $463.90 per week. How much does he earn per:
a fortnight
b year
c month?
Convert a salary of $56 000 p.a. to the equivalent salary per:

a week
b fortnight
c month
Alice works a 35-hour week and is paid $18.70 per hour. How much does she earn for a week
in which she works an additional 4 hours at time-and-a-half and 3 hours at double time?
Michelle works a 35-hour week and is paid time-and-a-half for any extra hours worked. One
week she worked 4 hours overtime and was paid $746.32. What is her hourly rate of pay?
Travis earns $560 per week. He is entitled to 4 weeks annual leave and receives an additional
holiday loading of 17.5%. Calculate his total pay for this holiday period.
Sharon is entitled to 4 weeks annual leave and receives a holiday loading of 17.5%. One year
her total holiday pay was $2641.40. What is Sharons weekly salary?
Nerida earns $0.98 for each dress she finishes in a clothing factory. If on average she can
finish 12 dresses per hour and she works 8 hours per day for 4 days, calculate her average
weekly earnings.
Cass sells computers. She is paid a retainer of $220 per week plus a commission of 2% of
sales. How much does she earn in a week in which her sales are $12 800?
Jim is paid a retainer plus a commission of 4% of sales. If he receives $800 for selling
$13 000 worth of goods, what is the retainer that he is paid?
10
Sam works as a casual in a fruit shop. He gets paid $11.60 for any hours worked from Monday
to Friday, $12.90 per hour for Saturdays and $13.60 for Sundays. Calculate how much he
earns for a week in which he works 6 hours between Monday and Friday, 5 hours on Saturday
and 4 hours on Sunday.
11
Jacks gross weekly income is $768 per week. The deductions from his salary each week are:
each week.
12
Calculate the simple interest on $3600 if invested at 9% p.a. for:

a 4 years
b 20 months
13
pair of running shoes marked as $179.
14
List two advantages and two disadvantages of using a credit card to purchase goods.
15
Melanie lay-bys a swing set costing $524 by paying a deposit of $150. Over the next 3 months
she makes repayments of $100, $120 and $85. How much more does she have to repay in
order to collect the swing set?
16
A car costing $10 999 can be bought on the following terms: deposit $3000, the balance to
be repaid over 4 years by 48 equal monthly repayments. Simple interest is charged on the
balance at 12% p.a. Calculate:
a the balance owing
17
Use the table on page 344 to calculate the monthly repayments on a loan of $7800 for
3 1--2- years at 12.5% p.a.
18
Terry borrowed $20000 at 11.5% p.a. His monthly repayments were $770.25. Over what
period of time did he borrow the money? (Use the table on page 344.)
19
Which is the better buy: 3 kg of tomatoes for $8.97 or 5 kg for $14.80?
20
Calculate the GST included in the price of a bottle of wine costing $18, price including GST.
355
356
REVIEW SET 11B

1
Dan earns $368.54 per week. How much does he earn per:
a fortnight
b year
c month?

a week
b fortnight
c month
Olivia works a 36-hour week and is paid $21.36 per hour. How much does she earn for a week
Stephanie is paid $21.30 per hour for working a 35-hour week and time-and-a-half for any
extra hours worked. One week she was paid $873.30. How much overtime did she do?
Terry earns $680 per week. He is entitled to 4 weeks annual leave and receives an additional
Nick is entitled to 4 weeks annual leave and receives a holiday loading of 17.5%. One year
his total holiday pay was $3741.20. Calculate his holiday loading.
Joanne sews buttons on shirts in a clothing factory. She is paid $0.38 per shirt. Calculate her
income for a week in which she completed the following number of shirts: Mon 165, Tues 189,
Wed 212, Thurs 194, Fri 176.
Benita sells printers. She is paid a retainer of $260 per week plus a commission of 1.5% of
sales. How much does she earn in a week in which her sales are $22 400?
Sally is paid a retainer of $220 per week plus a commission of 3% of sales. One week she
earned $598. What was the value of the goods that she sold?
10
Dennis works as a casual in a coffee shop. He gets paid $10.90 for any hours worked from
Monday to Friday, $13.64 per hour for Saturdays and $14.28 for Sundays. Calculate how
much he earns for a week in which he works 10 hours between Monday and Friday, 4 hours
on Saturday and 6 hours on Sunday.
11
Johns gross weekly income is $683 per week. The deductions from his salary each week are:
tax $216, superannuation $36.78, health insurance $41.20 and savings $50. Calculate his
take-home pay each week.
12
Calculate the simple interest on $18 000 if it is invested at 6% p.a. for:

a 3 years
b 15 months
13
An electrical goods store offers a discount of 14% for cash purchases. Find the cash price of
a toaster marked as $89.
14
List the advantages and disadvantages of using a lay-by to purchase goods.
15
An outdoor furniture setting costing $1889 can be bought on terms for $300 deposit and
24 monthly instalments of $90.04.
a Calculate the cost of buying the furniture on terms.
b How much interest is paid?
16
A washing machine costing $1655 can be bought on the following terms: deposit $200, the
balance to be repaid over 2 years by 24 equal monthly repayments. Simple interest is charged
on the balance at 15% p.a. Calculate:
a the balance owing
c the monthly repayment.
17
Use the table on page 344 to calculate the monthly repayments on a loan of $12 000
for 5 years at 10.5% p.a.
18
Sam borrowed $24000 over 4 years. The monthly repayments were $614.48. What was the
interest rate charged? (Use the table on page 344.)
19
A-One Car Hire Co. charges $34 per day with unlimited kilometres to rent a new Corolla.
B-One Car Rentals charges $26 per day plus 6 cents per kilometre travelled. Which company
is cheaper if you are likely to travel each day:
a 60 km
b 100 km
c 150 km?
20
Calculate the GST included in the price of a pair of shoes costing $128, price including GST.
357
358
REVIEW SET 11C

1

a week
b fortnight
c month
Convert a salary of $365 per week to the equivalent monthly salary.
in which she works an additional 3 hours at time-and-a-half and 1 hour at double time?
Kim works a 35-hour week and is paid time-and-a-half for any extra hours worked. One week
she worked 5 hours overtime and was paid $1140.70. What is her hourly rate of pay?
Kelly earns $632 per week. She is entitled to 4 weeks annual leave and receives an additional
holiday loading of 17.5%. Calculate her total pay for this holiday period.
Karen is entitled to 4 weeks annual leave and receives a holiday loading of 17.5%. One year
her total holiday pay was $5931.40. What is Karens weekly salary?
Peta earns $538 per week. At the end of the year her employer pays her a bonus of 5% of her
annual salary. Calculate Petas bonus.
Cameron sells real estate. He charges the following commission for selling home units:
3% of the first $150 00
2% of the next $50000
1% of the remainder of the selling price.
Calculate how much Cameron would earn for selling a home unit for:
a $145 000
b $185 000 c $220 000
Mick is paid a retainer plus a commission of 7% of sales. If he receives $992 for selling $9600
worth of goods, what is the retainer that he is paid?
10
James works as a casual in a bar. He gets paid $15.20 for any hours worked from Monday to
Friday, $17.68 per hour for Saturdays and $19.32 for Sundays. Calculate how much he earns
for a week in which he works 12 hours between Monday and Friday, 6 hours on Saturday and
6 hours on Sunday.
11
Joshs gross weekly income is $940 per week. The deductions from his salary each week are:
each week.
12
Calculate the simple interest on $13 000 if invested at 6% p.a. for:

a 5 years
b 21 months
13
tennis racquet marked as $279.
14
List the advantages and disadvantages of using cash to purchase goods.
15
Sylvie lay-bys a dress costing $465 by paying a deposit of 10%. Over the next 4 weeks she
makes repayments totalling $320. How much more does she have to repay in order to collect
the dress?
16
a the balance owing
17
Use the table on page 344 to calculate the monthly repayments on a loan of $24 000 for
4 years at 13% p.a.
18
Lenny borrowed $35 000 at 10.5% p.a. His monthly repayments were $999.41. Over what
period of time did he borrow the money? (Use the table on page 344.)
19
Which is the best value? Chocolate: 55 g block for $1.10, 250 g block for $4.88, 375 g block
for $7.35.
20
Calculate the GST and the price including GST on a pair of boots costing $498, price
excluding GST.
359
360
REVIEW SET 11D

1

a week
b fortnight
c month
Holly earns $528 per week. How much is this per month?
Gayatri is paid $36.90 per hour for working a 35-hour week and time-and-a-half for any extra
hours worked. One week she was paid $1734.30. How much overtime did she work?
Ken earns $720 per week. He is entitled to 4 weeks annual leave and receives an additional
Ray is entitled to 4 weeks annual leave and receives a holiday loading of 17.5%. One year his
total holiday pay was $4091.82. Calculate his holiday loading.
Isabella earns $0.71 for each part she builds in a factory that produces electrical appliances.
If on average she can finish 15 parts per hour and she works 6 hours per day for 5 days,
calculate her average weekly earnings.
Kate sells mobile phone plans. She is paid a retainer of $180 per week plus a commission of
6% of sales. How much does she earn in a week in which her sales are $9200?
Olivia is paid a retainer of $250 per week plus a commission of 6% of sales. One week she
earned $768.40. What was the value of the goods that she sold?
10
Ann works as a casual in a cafe. She gets paid $12.34 for any hours worked from Monday to
Friday, $13.85 per hour for Saturdays and $15.98 for Sundays. Calculate how much she earns
for a week in which she works 8 hours between Monday and Friday, 6 hours on Saturday and
3 hours on Sunday.
11
Philss gross weekly income is $895 per week. The deductions from his salary each week are:
tax $291, superannuation $42.81 and health insurance $38.26. He also deposits $100 a
week into a special savings account and has $10 per week donated directly to a charity.
Calculate his take-home pay each week.
12
Calculate the simple interest on $11 400 if invested at 8% p.a. for:

a 3 years
b 15 months
13
A store offers a discount of 12% for cash purchases. Find the cash price of a pair of sun
glasses marked as $189.
14
List the advantages and disadvantages of using a deferred payment option to purchase goods.
15
a the balance owing
No Deposit
$3999
16
A computer is advertised as shown opposite.

a Calculate the total amount you would have
to pay for the computer under this scheme.
No Repayments
for 12 months
(Conditions apply.)

(ii) Balance plus interest to be repaid by
equal montly instalments over the two
years following the interest free period.
(iii) Simple interest of 15% p.a. is charged
for the 3-year period of the agreement.
17
Use the table on page 344 to calculate the monthly repayments on a loan of $15 500 for
4 1--2- years at 14% p.a.
18
Will borrowed $28000 over 5 years. The monthly repayments were $651.51. What was the
interest rate charged? (Use the table on page 344.)
19
On savings accounts, Bobs Bank charges a management fee of $5.50 per month. The first
5 transactions are free and then a fee of 26 cents per transaction is charged. Bills Bank
charges a monthly management fee of $7.00 plus 9 cents per transaction. Which bank is
cheaper to use if your average number of monthly transactions is:
a 10
b 15
c 20?
20
Calculate the GST in the price of a cooked chicken costing $9.90, price including GST.
361

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LEY_bk953_11_finalpp Page 311 Wednesday, January 12, 2005 11:36 AM

Syllabus reference NS5.1.2

LEY_bk953_11_finalpp Page 312 Wednesday, January 12, 2005 11:36 AM

Consumer Arithmetic (Chapter 11) Syllabus reference NS5.1.2

Carol earns $397.20 per week. This is

A salary of $41 808 p.a. is not equivalent

A $804 per week

Alex is a real estate agent. He charges the

C $3484 per month

Sam earns $360 per week. This is

Bettina earns $680 per week. She is

Deborah is paid $0.48 for each pair of

The table shows the award wages for

Chan works a 36-hour week and is paid

D $10 452 per quarter

Simon earns $465 per week. The

The simple interest on $2490 at

Michelle invested $3000 for 4 years and

LEY_bk953_11_finalpp Page 313 Wednesday, January 12, 2005 11:36 AM

Consumer Arithmetic (Chapter 11) Syllabus reference NS5.1.2

A camera store offers a discount of 12%

The following conditions for the deferred

Pay nothing for 12 months.

Balance plus interest to be repaid by

Simple interest of 16% p.a. is

The method of purchasing goods by which

The total amount you would have to pay

C deferred payment D lay-by

A refrigerator costing $1895 can be

Using the table on page 344, the monthly

A television set costing $1289 can be

Which of the following is the best value?

A television set is advertised as follows:

The price of a TV including GST is $495.

LEY_bk953_11_finalpp Page 314 Wednesday, January 12, 2005 11:36 AM

Consumer Arithmetic (Chapter 11) Syllabus reference NS5.1.2

A fixed amount per year usually

Based on an hourly rate for an

A percentage of the value of

A fixed amount for each item

A fixed amount for a service

A fixed hourly rate for the

B. SALARIES AND WAGES

(using 1 fortnight = 2 weeks)

LEY_bk953_11_finalpp Page 315 Wednesday, January 12, 2005 11:36 AM

Consumer Arithmetic (Chapter 11) Syllabus reference NS5.1.2

a Weekly salary = $48 600 52

LEY_bk953_11_finalpp Page 316 Wednesday, January 12, 2005 11:36 AM

Consumer Arithmetic (Chapter 11) Syllabus reference NS5.1.2

Convert the following weekly salaries into monthly salaries:

Convert the following monthly salaries to the equivalent weekly salaries.

LEY_bk953_11_finalpp Page 317 Wednesday, January 12, 2005 11:36 AM

Consumer Arithmetic (Chapter 11) Syllabus reference NS5.1.2

a Weekly wages = 38 $28.75

Fiona earns $16.80 per hour and works a 36-hour week.

LEY_bk953_11_finalpp Page 318 Wednesday, January 12, 2005 11:36 AM

Consumer Arithmetic (Chapter 11) Syllabus reference NS5.1.2

LEY_bk953_11_finalpp Page 319 Wednesday, January 12, 2005 11:36 AM

Consumer Arithmetic (Chapter 11) Syllabus reference NS5.1.2

LEY_bk953_11_finalpp Page 320 Wednesday, January 12, 2005 11:36 AM

Consumer Arithmetic (Chapter 11) Syllabus reference NS5.1.2

b Holiday pay = $3240 + $567

In Cell F3 type the formula = (C3 + D31.5 + E32) B3.