New Century Math Yr 9 - Chapter05 Earning Money

05_NC_Maths_9_Stages_5.2/5.
3 Page 130 Friday, February 6, 2004 2:14 PM
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.
05_NC_Maths_9_Stages_5.2/5.3 Page 131 Friday, February 6, 2004 2:14 PM
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 fixed yearly amount of money (annual income) that is paid
weekly, fortnightly or monthly, usually to professional people and office
workers. Since a salary is fixed, 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 first 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?
CONS UM E R AR I T H M E T I C – E AR NI NG M ONE Y 131 CHAPTER 5

Start up
1 Daniel receives $14 in pocket money per week. How much does he receive:
Worksheet a in 4 weeks? b per day? c in 10 weeks? d in 2 weeks?
5-01 e in 3 days? f in 7 weeks? g in 5 days? h in 6 weeks?
Brainstarters 5
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?
Worksheet
e $160? f at least $100? g at least $500? h at least $250?
5-02
Time and money 3 Find one-and-a-half times each of these amounts:
calculations a $6 b $10 c $2 d $8
e $20 f $7 g $35 h $60
Worksheet
4 Evaluate each of the following (correct to the nearest cent, where necessary):
5-03
Percentages a $20 000 ÷ 52 b $75 000 ÷ 12 c 0.42 × $7500
without d 0.17 × $9217 e $47 580 ÷ 26 f 0.47 × $31 726
calculators g $39 870 ÷ 52.18 h $31 520 ÷ 26.09 i $82 176 ÷ 12
5 Increase each of these amounts by 10%:
Skillsheet a $50 b $80 c $150 d $12
5-01 e $6.80 f $21.20 g $46 h $37.70
Percentage
calculation
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 defined as the time taken for the Earth to
revolve around the Sun once, and this period is 365 days,
6 hours, 9 minutes and 9.5 seconds, or about 3651--- days.
4
As it is not practical to finish 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.
Since a year, on average, has 3651--- or 365.25 days:
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
Wages and salaries
5-04 People who work usually earn a wage or a salary. People who engage in manual or mechanical work
Wages and (shop assistants, tradespeople, factory workers etc.) usually earn a wage. People engaged in office or
salaries professional work (engineers, teachers, the police, bank employees etc.) usually earn a salary.
132 N E W C E N T U R Y M A T H S 9 : S T A G E S 5.2/ 5.3

A wage is income determined by the number of hours an employee works for a fixed 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 fixed 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 benefits, 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 (to the nearest cent)
b Fortnightly income = $812.57 × 2 (1 fortnight = 2 weeks)
= $1625.14
c Monthly income = $42 400 ÷ 12
= $3533.3333 …
= $3533.33
Example 2
Tony’s first 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 Job 2
Lab Assistant Part-time Gardener
$11.42 per hour $9046 p.a.
14 hours per week 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.

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
Sandra’s hourly pay rate = ($54 706 ÷ 52.18) ÷ 38 = $27.59
Sally’s hourly pay rate = $982 ÷ 37 = $26.54
Sandra earns more per hour.
Example 5
Dale earns $4900 per month. Calculate:
a Dale’s annual salary b how much Dale would earn per week.
Solution
a Annual salary = $4900 × 12 b Weekly earnings = $58 800 ÷ 52.18
= $58 800 = $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 c monthly income
d hourly income (assuming a working week of 36 hours).
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, five days per week.
Rhonda earned $68 620 p.a., working 6:00am to 6:00pm, Monday to Thursday.

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: Example 5
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 Katherine’s weekly wage.
14 Ratha is to be paid fortnightly instead of monthly. His monthly income is $5600. Calculate the
amount of Ratha’s 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.
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 employer–employee negotiations or
employer–union 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

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) = 38 × $14.50 = $551
Time-and-a-half pay (Saturday) = 6 × $14.50 × 1.5 = $130.50
Double time pay (Sunday) = 4 × $14.50 × 2 = $116
Total earnings = $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
Normal rate For 0 to 38 hours worked
Time-and-a-half For the next 3 hours
Double time 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

Exercise 5-02
1 Using an hourly rate of $12.80, calculate the total earnings for working: Example 6
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 7
Normal rate Applies Monday to Friday

Time-and-a-half For any hours worked on Saturday
Double time For any hours worked on Sunday
Use the table above to calculate the total earnings for each employee below.
Hours worked
Name Hourly rate Mon–Fri Sat Sun
a Alan Douglas $9.60 36 4 8
b Vic Hawkes $23.30 38 0 6
c Dalleen Jones $18.60 38 4 2.5
d Tarek Mifsud $20.00 40 8 0
e Ivan Vitsic $30.00 34 4 6
f Ian Hackett $16.40 36 4.5 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. Example 8
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 9 5 Weekly award

Normal rate = $14.60 per hour
Normal rate For 0 to 36 hours
Time-and-a-half For next 4 hours
Double time 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 first 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 0–38 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

Hourly Hours Time-and- Double
Name Normal
pay worked a-half time
Robert Jones $22.50 40 38 2 0
Amanda Wang $18.40 36 36 0 0
Pete Pha $10.40 42
Zlatko Bankovic $13.90 44
Chris Chan $9.50 41
Pauline Benson $9.50 42
Doug Barrett $9.50 45
Mai Ngo $9.50 43.5

1 Copy and complete the table above. Spreadsheet

5-01
2 Set up your spreadsheet as follows: Calculating
A B C D E F G H I J
incomes
18 Name Hourly Hours Normal Time-and- Double Gross Tax Net
pay worked a-half wage wage
19 Robert Jones $22.50 40 38 2 0

26
• 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 flat 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
SkillTest
1 To find 10% of a money amount, just move the decimal point one place to the left, then
5-01
round, if necessary. Examine these examples. Everyday
a Find 10% of $150. percentages
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 c $874 d $202
e $37.64 f $216.70 g $9.25 h $8.99
i 48c j 97c k $1527.60 l $82.67
m $31.54 n $1.07 o $4.26 p $24 317.60

3 To find 20% of an amount, first find 10% then double it (rounding the final 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 c $8.60 d $38.60
e $502 f $12 750 g $962 h 38c
i $7.50 j $8.16 k $25.40 l $320
5 To find 5% of an amount, just find 10%, then halve the answer (rounding the final 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 c $12 d $27
e $36.80 f $72.40 g 80c h 13c
i $9.65 j $38.50 k $7.99 l $857.60

Working mathematically
Communicating and reasoning: Positions vacant
You will need: the employment papers of a newspaper.
1 a Select five 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 benefits 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
employee be Full-time Permanent Positions
expected to work Baulkham Hills, Lidcombe, Pymble, Five Dock, Wahroonga, Dural and Hornsby
in a week? Part-time Permanent Positions
b Explain what a Thomson – 21 hours per week; shifts start at approximately 6:30am
Wetherill Park – 20 hours per week; shifts start at approximately 7:30am
‘fixed 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
rates. Can you give Thomson – until 10 June 2002; 24 hours per week; shifts start at
approximately 6:30am
a reason for this?
FULL-TIME
Regents Park – until 10 August 2002
North Bank – until 19 June 2002
Camperdown
Blacktown – until 22 October 2002
Lane Cove – 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 classified advertisement

Glasscutters
on the right, how much would a glasscutter earn in $17p/h
one year if he is expected to work 35 hours per Exp. Cutters req. in Gladstone for immediate
week? 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

Other forms of income

Not all income is obtained through the payment of wages or salaries.
Worksheet
5-05
Earning money Commission and piecework
Commission is a common income-earning method for salespeople, or for agents of a business or
Skillsheet company. A commission is a percentage of the value of goods sold. It is paid to the person who
5-01 sold the goods. A fixed amount, called a retainer, may also be paid.
Percentage Piecework is income earned according to the number of tasks a person completes or the number
calculations
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 salesperson’s 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
Dan’s income = 4.5% of $32 427
= $1459.215
≈ $1459.22 (to the nearest cent)
∴ Dan’s income is $1459.22.
2 A real estate salesperson is paid according to the following rates: 2% on the first $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.

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: Example 10
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 Jenny’s
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 Lara’s income last year
b Lara’s 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 Pauline’s income Example 11
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 Renee’s
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 first $100 000 of value • 2% on any value thereafter.

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 first $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 Hanna’s
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 William’s 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
Example 13 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 Kevin’s total earnings for the week
b Kevin’s average daily earnings
c Kevin’s average hourly rate of pay if he worked for 8.5 hours each day. (Write your answer
to the nearest ten cents.)

Wash only Wash and polish

Day
(number of cars) (number of cars)
Monday 11 4
Tuesday 12 8
Wednesday 7 10
Thursday 16 3
Friday 18 13
Saturday 10 12
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 Danielle’s 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 iv 130 kg
v 140 kg vi 143 kg vii 150 kg viii 166 kg

b Calculate Gino’s total earnings for picking fruit last week if he picked the following
quantities:
Day Mon Tues Wed Thurs Fri Sat Sun

Mass picked (kg) 127 106 97 42 151 83 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).
Number of Prizemoney won

Jockey
rides by horses
a Daryl Olivier 476 $10 342 700
b Chris Munster 221 $397 516
c Jim Hopalong 336 $7 516 215
d George Ryan 624 $3 100 520
e Alan Robins 596 $1 124 670
f Corey Black 547 $8 316 215
Using technology
Spreadsheet
5-02 Spreadsheet activity: Calculating commissions
Calculating Spreadsheets can be used to calculate the pay of salespeople employed under different rates of
commissions commission.
1 Consider the following pay arrangements of three salespeople:
• Jack earns a flat rate of 4% of all sales.
• Juliana earns 31--- % of all sales, plus a retainer of $110.
2
• Jeff earns 5.2% of all sales over $5000, plus a retainer of $75.
Set up your spreadsheet as follows:
A B C D E F G
20 Name Value Commission Retainer Commission Income
of sales rate earned
21 Jack 0.04 0 0 =(D21*C21)+E21
22 Juliana =C21 0.035 110 0 =(D22*C22)+E22
23 Jeff =C21 0.052 75 5000 =if(C23>F23,E23*(C23−F23),E23)
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.

Bonuses, allowances and holiday loadings Worksheet

A bonus is an extra amount of money paid to employees who produce work of high quality or 5-05
volume. Earning money
An incentive is another type of bonus, involving an amount of money or a benefit 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.
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, b Bonus = 2.5% of annual income
we need to calculate annual income from the ∴ 2.5% = $1375
weekly wage. 1% = $1375
---------------
Corey’s annual income = $1327.50 × 52 2.5
= $69 030 = $550
Corey’s bonus = 2.5% of $69 030 ∴ 100% = $550 × 100
= 2.5 ÷ 100 × $69 030 = $55 000
= $1725.75 ∴ Diane’s annual income is $55 000.
∴ Corey’s bonus is $1725.75.
Example 15
As a casual restaurant worker, Steffi 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, Steffi has worked 42 hours and travelled 246 km in her own car
making deliveries. Find her total earnings for the fortnight.
Solution
Wage earnings = 42 × $14.80 = $621.60
Uniform allowance = 2 × $10.50 = $21
Travel allowance = 246 × $0.26 = $63.96
Fortnightly earnings = $621.60 + $21 + $63.96
= $706.56.
∴ Steffi’s 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 Harry’s weekly income when he works for 42 hours,
19 hours of which were at a height above 20 metres.

Solution
Harry’s 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:
Harry’s income = 23 × $19.40 + 19 × ($19.40 + $3.80)
= $446.2 + $440.8
= $887
Method 2:
Harry’s income = 42 × $19.40 + 19 × $3.80
= $814.80 + $72.20
= $887
Example 17
Before going on his annual holidays, Ken received 4 weeks normal pay plus a 171--- % holiday
2
(annual leave) loading for the 4 weeks.
If Ken earns a salary of $40 840 p.a., find:
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
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
Example 15 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.

4 Joe works for the Road Transport Authority with a road maintenance team. He earns $16.40 Example 16
per hour in dry conditions and an extra $2.20 per hour in wet conditions. Calculate Joe’s 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 Laura’s normal hourly rate of pay.
b Find Laura’s 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 Laura’s average annual income based on this.
6 Each of the following employees is about to begin a four-week holiday. They will receive the Example 17
equivalent of 4 weeks’ normal pay plus a 17 1--- % holiday loading on the 4 weeks’ pay. Find the
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 Frank’s weekly income
b the holiday loading of 17 1--- % on 4 weeks’ pay
2
c Frank’s four-week holiday pay.
8 Astra is the manager of a jewellery shop. Her salary is
$52 000 p.a. Calculate:
a Astra’s 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. Jamie’s rate of pay is
$15.80 per hour. Calculate:
a Jamie’s weekly wage
b Jamie’s 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 Brodie’s total weekly earnings.
11 Zlatko, a construction supervisor, has signed a contract worth $87 000 to ensure that a factory
is built by June 30. He will receive a bonus of 11--- % of his contract for each day the job is
2
completed ahead of time. How much will Zlatko earn if the factory is completed on June 22?
12 Each day, Kay, a fire control officer, 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 Kay’s weekly pay:
i without allowances ii with allowances
b Kay’s holiday pay for 3 weeks, including the 171--- % holiday loading on 3 weeks’ pay.
2

Gross income and net income

The total amount a person earns is called his or her gross income or gross pay.
Worksheet
5-06 Most income earners have a variety of deductions made against their gross income before they
Pay day receive it, such as union fees, insurance payments, superannuation payments and health fund
payments. Income tax is also regularly deducted from a person’s 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 Paul’s net income
b the percentage of Paul’s 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
------------- × 100%
784.6
= 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 Justine’s fortnightly gross income
b the amount of tax Justine pays
c Justine’s net income for the fortnight.
Solution
a Gross income = ($34 800 ÷ 52.18) × 2
= $1333.844385
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 Justine’s net income = $1333.84 − $(282.77 + 28.70 + 91.60)
= $930.77

Exercise 5-05
1 Calculate the net income in each of the following cases: Example 18
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 HOURLY PAY RATE: $16.80

HOURS WORKED DEDUCTIONS
Normal 38 Tax: $153.20 Other: $124.60

Time-and-a-half 0 GROSS WEEKLY INCOME
Double time 0 TOTAL DEDUCTIONS
NET WEEKLY INCOME
b EMPLOYEE: IAN MENZIES HOURLY PAY RATE: $12.50

Normal 39 Tax: $167.80 Other: $229.10

NET WEEKLY INCOME
c EMPLOYEE: TONY O’FLYNN HOURLY PAY RATE: $22.80

Normal 37 Tax: $375.10 Other: $84.50

NET WEEKLY INCOME
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 Example 19
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.

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 Jodie’s net fortnightly pay is $657.30, find 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 iii the net income.
Salary Other
Name Pay period Tax rate
(p.a.) deductions
a Alanna $32 489 Weekly 22.4% 14.4%
b Betty $70 465 Weekly 30.4% 12.4%
c Christine $18 690 Fortnightly 16.2% 23.4%
d Dennis $47 650 Fortnightly 28.6% 18.4%
e Eric $82 300 Monthly 30.9% 11.5%
f Frank $94 560 Monthly 31.2% 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 don’t 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
Angela’s weekly budget is shown below.
Spreadsheet
5-03 Angela’s weekly budget
Budgeting
Income Expenses
Earnings $655 Rent $180
Groceries $70
Loan $50
Magazines $18
Petrol $35
Bills $40
Clothes $50
Entertainment $80
Savings
Total $655

a What is the total of Angela’s expenses (without savings)?

b To balance her budget, how much will Angela need to save each week?
c Which of Angela’s expenses are ‘fixed’ (or do not change)?
d 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 = 180
--------- × 100%
655
= 27.5% (correct to one decimal place)
Exercise 5-06
1 Joshua, an apprentice mechanic, clears $372 Example 20
Joshua’s weekly budget
per week. His income and expenses are shown
in this table. Income Expenses Worksheet
a What percentage of Joshua’s income is spent 5-07
on fares? Earnings $372 Board $50 Budget grid
b How much board will he pay in one year? Fares $38
Lunches $40 Worksheet
c Calculate the amount Joshua will need to save
Tools $60 5-08
each week to make his budget balance.
Mobile phone $25 Budgeting
d Joshua needs $1500 for a holiday. How long
Clothes $40 scenarios
will it take for him to save this amount?
Entertainment $55
Savings
Total $372 $372
2 Sandy works in the city and shares a house with

Sandy’s weekly budget
three friends.
a The rent is shared equally by Sandy and her Income Expenses
friends. What is the total cost of their
accommodation per week? Earnings $480 Rent $105
b What percentage of her income does Sandy Electricity $10
spend on: Telephone $55
Food $50
i clothes?
Fares $25
ii rent? Clothes $120
c How much does Sandy save each week? Entertainment $80
Savings
Total $480 $480

3 Lisa’s gross weekly income is $850. Tax and

Lisa’s weekly budget
other deductions amount to $356. Her expenses
are: groceries $100, household bills $65, car Income Expenses
$45, clothes $80 and entertainment $90.
a Copy and complete Lisa’s budget table. Earnings Groceries
b Lisa’s budget does not include an amount Household bills $65
Car
for accommodation. State a possible reason
Clothes
for this.
Entertainment
4 Shannyn, who lives at home, has a net weekly Savings
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 Shannyn’s 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 Greg’s net weekly income is $385. He earns another $162.50 for casual work on weekends.
Greg’s weekly expenses are: rent $55, petrol $45, car loan $75, food $40, clothes and
entertainment $80.
a What is Greg’s 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?
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

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 finding 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 Example 21
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. Example 22
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

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

a 500 g for $1.89 200 g for 76c 100 g for 39c 1 kg for $3.74
b 250 mL for $1 50 mL for 17c 1 L for $2 200 mL for 70c
c 750 g for $5.20 400 g for $2.40 250 g for $1.70 2 kg for $12.20
d 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:
• Petor’s cost $75 and lasted 500 days.
• Peta’s cost $92 and lasted 650 days.
• Pam’s 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: Method 2:
Marked price = $295 Sale price = 88% of $295
Discount = 12% of $295 = --------
88
- × $295
100
= --------
12
- × $295 = $259.60
100
= $35.40
∴ sale price = $295 − $35.40
= $259.60

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
Percentage discount = --------
73
- × 100%
500
= 14.6%
∴ a 14.6% discount is being offered.
Example 25
A lounge suite costs $880 after a 121--- % discount. What was the original price?
2
Solution Spreadsheet
Sale price = $880 5-04
Discount = 12 1--- % = 12.5% Percentage
2
change (unitary
∴ $880 = 87.5% of the original price (since 100% − 12.5% = 87.5%)
method)
$880
1% = ------------
87.5
= $10.057 143 …
∴ 100% = 1005.714 …
∴ original price = $1006 (rounded to the nearest dollar)
Example 26
Lloyd’s 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 Joanne’s percentage discount (on the original cost)?
Solution
a 20% discount = 0.2 × $550 b Total discount = $550 − $396
= $110 = $154
∴ sale price = $550 − $110 c Percentage discount = 154
--------- × 100%
= $440 550
10% discount (for paying cash) = 0.1 × $440 = 28%
= $44
∴ final sale price = $440 − $44
= $396
Exercise 5-08
(Round your answers to two decimal places where necessary.)
1 Find the sale price for each of these: Example 23
a marked price = $207 b marked price = $376 c marked price = $4
discount = 12% discount = 20% discount = 16%

2 Choose the correct answer from those given in each case.

Worksheet a The selling price of a tracksuit marked at $185, now discounted by 30%, is which of the
5-09 following?
Discounts and A $155 B $129.50 C $55.50 D $616
best buys
b The selling price of a TV marked at $569, now discounted by 15%, is which of the
following?
Worksheet A $85.35 B $550 C $554 D $483.65
5-03 c The sales price of cauliflowers marked at $3.40 each, now discounted by 25%, is which of
Percentages the following?
without
calculators 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
Example 24 3 Find the discount as a percentage of the marked price in each case.
a b
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
Total number of bricks Discount to builders (%)
Company offers a range of
discounts to builders according to up to 5000 5.0
the total number of bricks they
5001–10 000 7.5
order. The table on the right
summarises the discounts on 10 001–15 000 8.75
offer. 15 001–20 000 9.5
over 20 000 10.0
Calculate the cost to builders who buy:
a 17 000 bricks @ 63c each b 24 000 bricks @ 54c each
c 8764 bricks @ 87c each d 19 821 bricks @ 72c each

6 Janine needs to buy carry-bags for her shop. She buys bags to the value of $148. Example 26
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 final 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 Store 2: Cash price = $370 Store 3: Cash price = $412
Discount = 10% Discount = 5% Discount = nil
Trade-in = nil Trade-in = nil Trade-in = $60
From which store would you buy the printer? Justify your answer.
10 A tradesperson always receives a 10% discount at a hardware shop. The shop now offers a
15% discount to all customers. The tradesperson asks for 25% off her bill during the sale.
Instead, the salesperson calculates her 10% trade discount before giving a 15% discount on
the reduced amount. Explain why.
Using technology
Spreadsheet
‘Magnificent male’ sale! 5-05
A men’s clothing store is having a 5%-off-all-stock sale. ‘Magnificent
male’ sale
1 Calculate the sale price for each item and determine the total amount saved.
Item purchased Normal price ($)
Suit 299.00
Shirt 66.00
Tie 21.40
Belt 18.60
Shoes 123.40

2 Set up your spreadsheet as follows:

A B C D E F
7
8
9 Item Normal price Discount rate Sale price
10 Suit 0.15 =(1−E10)*D10
11 Shirt =E10
12 Tie
13 Belt
14 Shoes
15 Total paid =SUM(D10:D14) =SUM(F10:F14)
16
17 Total saved= =D15−F15
18
Step 1: Enter the labels as shown.

Step 2: Enter the marked price for each item in column D.
Step 3: Enter the formula =E10 in E11 and copy it down to E14.
Step 4: Enter the formula =(1–E10)*D10 in F10 and copy it down to F14.
Step 5: Enter the formula =SUM(D10:D14) in D15.
Step 6: Enter the formula =SUM(F10:F14) in F15.
Step 7: Enter the formula =D15–F15 in D17.
3 If a purchaser in the clothing industry was to receive a further 2 1--- % discount, how would
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 first discount is calculated on the list price, the second discount on the first 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%

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 Brenda’s and Barry’s 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 firm is establishing new offices. It needs 30 three-drawer cabinets or the equivalent in
two-drawer or one-drawer cabinets. Suppose that, as financial controller of the firm, you are
studying sales brochures from three stores:
• Store 1 sells only three-drawer and two-drawer filing 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 filing cabinets.
Offer: Best prices in town!
Cost: $55 per cabinet.
• Store 3 sells all types of filing 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.
Jordan’s employer deducts PAYG tax instalments of $172.40 from his weekly pay. Find:
a Jordan’s 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 Jordan’s tax refund or tax debt.

8
Tax rates
Spreadsheet
5-06 Taxable income ($) Tax on this income
Tax rates
 0–6000 Nil
 6001–20 000 17c for each $1 over $6000
Tax 
brackets  20 001–50 000 $2380 plus 30c for each $1 over $20 000
 50 001–60 000 $11 380 plus 42c for each $1 over $50 000

 60 000 $15 580 plus 47c for each $1 over $60 000
Source: Australian Taxation Office website
Use the tax table above to find 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. Angela’s holiday is for three weeks,
while Dianne’s is for four weeks. Calculate how much more money than Dianne Angela earns
in a working week.
Worksheet Language of maths

5-10
Earning and allowance annual bonus commission
spending consumer deduction discount earnings
find-a-word employer gross income instalment
net income overtime per annum percentage
piecework principal retainer salary
simple interest superannuation taxation 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 G—O—S b T—X—T—O—
c —V—R—I—E d I—S—A—M—N—
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?

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 difficult 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 Allowances
Earning income
17.5%
Discounts
S
p
e
Best n CONSUMER
buys d
i
n
ARITHMETIC
g
Budgeting
Paying tax
• Gross pay Taxable Income

Deductions
• Net pay income tax

Chapter 5 Review Topic test

Chapter 5
Ex 5-01 1 A library assistant earns $1927.40 per month. What is his annual salary?
Ex 5-01 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?
Ex 5-01 3 Convert an annual salary of $50 000 to income:
a per week
b per fortnight
c per month.
Ex 5-01 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
Ex 5-02 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.
Ex 5-02 6 A factory worker is employed under the following award:
Award schedule
Normal rate is $10.75 per hour
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.
Ex 5-02 7 Meredith earns $12.60 per hour for the first 8 hours she works on any day, and double time
for any hours after that. Find Meredith’s gross daily income for working from 9:00am to
8:00pm.
Ex 5-03 8 Branka is paid 4.5% commission on the value of goods she sells over $2000. Find Branka’s
income for selling goods worth:
a $8400
b $27 220.
Ex 5-03 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 Nicole’s average monthly sales are $82 500, find:
a her average monthly income
b her annual income.

10 Sam, the super salesman, is paid commission on a sliding scale of 3% on the first $50 000 of Ex 5-03
sales and 2.5% on all sales after that. Calculate Sam’s 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 Ex 5-03
least $100?
12 A jockey earns $100 per race ride and 5% of the value of prizemoney his horses win. Last Ex 5-03
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 Ex 5-04
with her 4 weeks’ pay, she also receives a 17.5% annual holiday loading on the 4 weeks.
Find Sandra’s total holiday pay.
14 Mick is a scaffolder who earns $19.80 per hour plus an additional $2.70 per hour for Ex 5-04
working in extreme heat. He also earns a $5.40 per week uniform allowance. Calculate
Mick’s income for last week when he worked 40 hours, 9 of which were in extreme heat.
15 Find Paula’s net income if she earns $1295 per week, has miscellaneous deductions of $184 Ex 5-05
and pays tax at the rate of 32.4 cents in the dollar.
16 Determine the best buy in each of these cases: Ex 5-07
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 flour for 94c
or 500 g of Store flour for 70c
17 Compare the unit prices of the following to find the best value. Ex 5-07
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: Ex 5-08
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, find: Ex 5-08
a the cost price of the TV
b the selling price of the TV.
20 A store has a fixed percentage mark-up that is added to the cost price of DVDs. One week, Ex 5-08
the store gives a 20% discount. The following week, the 20% discount is given on the cost
price and then the same fixed 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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05_NC_Maths_9_Stages_5.2/5.

3 Page 130 Friday, February 6, 2004 2:14 PM

In this chapter you will:

CONS UM E R AR I T H M E T I C – E AR NI NG M ONE Y 131 CHAPTER 5

Just for the record

132 N E W C E N T U R Y M A T H S 9 : S T A G E S 5.2/ 5.3

For wage calculations: 1 year = 52 weeks

Which job should he take and why?

CONS UM E R AR I T H M E T I C – E AR NI NG M ONE Y 133 CHAPTER 5

134 N E W C E N T U R Y M A T H S 9 : S T A G E S 5.2/ 5.3

CONS UM E R AR I T H M E T I C – E AR NI NG M ONE Y 135 CHAPTER 5

Award for cadet hamburger chefs

136 N E W C E N T U R Y M A T H S 9 : S T A G E S 5.2/ 5.3

a 40 hours at normal rates and 2 hours at time-and-a-half

Normal rate Applies Monday to Friday

CONS UM E R AR I T H M E T I C – E AR NI NG M ONE Y 137 CHAPTER 5

Example 9 5 Weekly award

Breakdown of pay rates

138 N E W C E N T U R Y M A T H S 9 : S T A G E S 5.2/ 5.3

1 Copy and complete the table above. Spreadsheet

• Enter labels in cells B18, C18, D18, …, J18 as shown.

CONS UM E R AR I T H M E T I C – E AR NI NG M ONE Y 139 CHAPTER 5

140 N E W C E N T U R Y M A T H S 9 : S T A G E S 5.2/ 5.3

3 Using the wage rate in the classiﬁed advertisement

4 What is the pay offered in this advertisement?

CONS UM E R AR I T H M E T I C – E AR NI NG M ONE Y 141 CHAPTER 5

Other forms of income

142 N E W C E N T U R Y M A T H S 9 : S T A G E S 5.2/ 5.3

a $32 000 b $27 000 c $9400

3 Consider these two salespeople and their methods of payment:

for selling goods worth:

CONS UM E R AR I T H M E T I C – E AR NI NG M ONE Y 143 CHAPTER 5

Find the commission earned by selling properties valued at:

144 N E W C E N T U R Y M A T H S 9 : S T A G E S 5.2/ 5.3

Wash only Wash and polish

CONS UM E R AR I T H M E T I C – E AR NI NG M ONE Y 145 CHAPTER 5

Day Mon Tues Wed Thurs Fri Sat Sun

Number of Prizemoney won

146 N E W C E N T U R Y M A T H S 9 : S T A G E S 5.2/ 5.3

Bonuses, allowances and holiday loadings Worksheet

CONS UM E R AR I T H M E T I C – E AR NI NG M ONE Y 147 CHAPTER 5

148 N E W C E N T U R Y M A T H S 9 : S T A G E S 5.2/ 5.3

CONS UM E R AR I T H M E T I C – E AR NI NG M ONE Y 149 CHAPTER 5

Gross income and net income

Net income = gross income − total deductions

150 N E W C E N T U R Y M A T H S 9 : S T A G E S 5.2/ 5.3

a Gross income = $2160, tax = $676, other deductions = $327.80

a EMPLOYEE: JANICE HALL HOURLY PAY RATE: $16.80

Normal 38 Tax: $153.20 Other: $124.60

Double time 0 TOTAL DEDUCTIONS

NET WEEKLY INCOME

b EMPLOYEE: IAN MENZIES HOURLY PAY RATE: $12.50

Normal 39 Tax: $167.80 Other: $229.10

Double time 0 TOTAL DEDUCTIONS

NET WEEKLY INCOME

c EMPLOYEE: TONY O’FLYNN HOURLY PAY RATE: $22.80

Normal 37 Tax: $375.10 Other: $84.50

Double time 2 TOTAL DEDUCTIONS