Calculations In Everyday Contexts.

Wage RisesExample 1.

(a) The new annual wage.

(b) The new monthly wage.

Solution

(a) The new annual wage = old wage + pay rise.

= 16 152 + 2400

= £18 552 per annum.

(b) Monthly salary = annual salary 12 months

= £18 552 12 = £1546 per month

A computer operator earning £16152 per annum is given a wage rise of £2400. Calculate :

(a) The new annual wage.

(b) The new monthly wage.

Solution

(a) The new annual wage = old wage + pay rise.

= 16 152 + 2400

= £18 552 per annum.

(b) Monthly salary = annual salary 12 months

= £18 552 12 = £1546 per month

A computer operator earning £16152 per annum is given a wage rise of £2400. Calculate :

What’s in the box?

Example 2.

Solution.

Calculate Jane’s pay rise:

7 % of £18 564 = £18 564 100 x 7

= £1299.48

New wage = 18 564 + 1 299.48 = £ 19 863.48

For a weekly wage divide by 52

Weekly wage = 19 863 . 48 52 = £381.99 per week.

Jane earns £18564 per year. She is given a 7 % pay rise but is still paid weekly. What does Jane earn per week?

What’s in the box 2?

Solution.

Calculate Jane’s pay rise:

6 % of £23 564 = £23 564 100 x 6

= £1413.84

New wage = 23 564 + 1413.84 = £ 24 977.84

For a weekly wage divide by 52

Weekly wage = 24 977.84 52 = £480.34 per week.

Jane earns £23 564 per year. She is given a 6 % pay rise but is still paid weekly. What does Jane earn per week?

Commission Example 1.

Solution.

Commission = 3.5% of 45 000

= 45 000 100 x 3.5

= £1575

Total wage = basic + commission = 450 + 1575

= £ 2025

Sam is paid a basic wage of £450 a month and 3.5% commission on sales he makes. Calculate his total salary in a month when he sold £45 000 worth of goods.

Example 2.

Emily is paid a basic wage of £ 678 per month and 7.5% commission on sales she makes over the value of £20 000. Calculate her total salary in a month when she sells £47 500 worth of goods.

Solution.

Amount of sales commission is paid on = 47 500 – 20 000

= £27 500

Amount of commission = £27 500 100 x 7.5= £2062.50

Total salary = basic + commission = 678 + 2062.50

= £2740.50

Overtime & Bonuses.Example 1.

If John’s normal wage was £8.60 an hour , calculate his wage at :

(a) Double time (b) Time and a half.

Solution

(a) Double time = 2 x normal wage

= 2 x 8.60 = £17.20

(b) Time and a half = normal wage plus half as much again.

= 8.60 + 4.30 = £12.90

Example 2.

Solution.

Normal wage = 20.40 x 35 = £714

Overtime worked = 43 – 35 = 8 hours

Overtime pay = 20.40 + 10.20 = £30.60

Overtime wage = 30.60 x 8 = £244.80

Total wages = 714 + 244.80 = £958.80

Billy is paid £20.40 an hour for a 35 hour week and time and a half for any overtime he does. Calculate his wage in a week when he worked 43 hours .

Hire Purchase.

Example 1.

Solution.

H.P cost = Deposit + Monthly Payments.

Monthly Payments = 12 x 14.50 = £174

H.P price = 20 + 174 = £194

I buy a bike on Hire Purchase (H.P) for a deposit of £20 and 12 monthly payments of £14.50.Calculate the total H.P price.

Example 2.

A television costs £350 cash price. It can be bought on H.P for a deposit of 10% of the cash price and 2 years of monthly payments of £17.50. Calculate the difference between the cash price and the H.P price.

Solution

Deposit = 10% of 350 = £35

Monthly payments = 24 x 17.50 = £420

Total H.P price = 35 + 420 = £455

Difference in price = H.P – C.P = 455 - 350

= £105

Example 3.

A car with a cash price of £ 8 500 can be bought on H.P for a 15% deposit and a monthly payment of £210 for 3 years. Calculate the total H.P costs.

Solution.

Cost of deposit:

15% of 8500 = £1275

Monthly payments 3 years = 36 months.

210 x 36 = £7560

Total H.P price:

£1275 + £7560 = £8 835

Insurance Premiums.Example 1.

Solution.

£1000 worth of insurance = £2.76

£240 000 worth of insurance = 2.76 x 240

= £662.40

How much would a £240 000 house cost to ensure if the insurance company charges £2.76 per £1000 insured ?

Example 2.

Solution.

House insurance:

2.32 x 185 = £429.20

Contents insurance:

1.54 x 80 = £123.20

Total insurance costs : £429.20 + £123.20

= £552.40

How much would a house worth £185 000 with contents valued at £80 000 be to insure if the buildings premium was £2.32 per £1000 and contents premium £1.54 per £1000 ?