Grade 10/ UNIT 2: Consumer Arithmetic Worksheet #2

Name: ……………………………………………. Date:_____________________

Objectives:

(1) Change between currencies

(2) Solve problems involving cost price, selling price, discount, best value, hire purchase, mortgages, taxes, overtime,
utility bills, and percentage profit and loss.
(3) Calculate simple interest, compound interest, depreciation and appreciation.
(4) Solve problems involving ratios, direct proportions and indirect proportions.

Utility Bills

 4 types of utility bill questions are usually set (electricity, gas, water, and telephone), but the
technique for calculations are similar.

Activity 1: (Utility Bills)

1. The electricity rate for private homes are: * first 50units cost 30cents per unit

* further units cost 20cents per unit

What is the bill for someone who uses:

(a) 30 units (b) 51 units (c) 85 units

2. The electricity rates for Companies are:

 First 100 units cost 40cents each

 Next 200 units cost 30 cents each

 Remaining units cost 20cents each

a) What is the cost of the 101st unit: ……………………………………………………..

b) What is the cost of the 301st unit: ……………………………………………………..

c) What is the bill for a Company which uses:

i) 101units ii) 301units iii) 1000units

3. On January 1st, a gas meter reads 2432units. One month later it reads 2546 units. What is the gas
bill if units cost $1.50 each and there is a fuel surcharge of 50cents per unit?

….…………………………………………………………………………………………………..

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 4. Mr. Smith’s water bill is $4 988.

a) How many units does he use if the cost per unit is $43?

…..…………………………………………………..……………. ................................................

b) If there was a standing/fixed charge of $688, how many units would he have used?

….………………………………………………………………………………………………….

5. A monthly telephone bill is made up of a $2 500 rental charge, while calls cost $3.50 per minute.
How many minutes was used up in calls if the monthly bill is:

(a) $2 500 (b) $2 850 (c) $6 665

Foreign Currency

Activity 2: (Foreign Currency)

Use: EC$ =Bd$0.74; TT$1=Bd$0.44; J$1=Bd$0.05; US$1=Bd$2.00; UK£1=Bd$2.95

1. Change:

a) Bd$300 to J$ (b) Bd$1200 to US$ (c) Bd$4000 to UK£ (d) EC$675 to Bd$

….………………… ……………….…… ………………..…. ……………….……

2. A bottle of rum cost Bd$10.00 in Barbados. The same bottle is sold for US$6.50 in the US. In
which country is it cheaper and by how much?

…………………………………………………………………………………………

3. Mrs Smith takes TT$1 000 in travelers cheques to Jamaica. In Jamaica she spends J$7000. How
much TT$ does she return home with?

………………………………………………………………………………………….

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Shopping

 Making choices based on valid calculations

Activity 3: (Value-based shopping)

Make value-based comparisons using appropriate calculations to determine which product would make
the better buy for a consumer:

a) A 3kg parcel of rice costing $9.60 OR a 5kg parcel of the same brand of rice costing $15.50

….…………………………………………………………………………………………………..

b) 12.5kg of chicken costing $ 27.75 OR 9.25kg of chicken of the same quality for $20.15

………………………………………………………………………………………………………

Profit and Loss

 Profit or Loss = Selling Price – Cost Price

 Profit/Loss Percentage = x 100

Activity 4: (Profit and Loss)

1. Jason made a table for $10 000 and sold it for $8 000. What is his percentage profit or loss?

…………………………………………………………………………………………….

2. Mr. Fowler buys chickens for $150 and sells them for $200 each. What is his percentage profit or
loss?

……………………………………………………………………………………………

3. Andrew bought his car for $635 000 and sold it at a 20% loss, how much did he sell the car for?

………………………………………………………………………………………………

4. Jan buys a hairdryer for $1 200 and sell it for a 331/3 % profit. What is the selling price?

………………………………………………………………………………………………

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Cost Price

 Note: Ensure that you understand at least one method for calculating cost price
(3 methods)

1) Cost Price = x Selling Price (Selling Price % = 100% + profit%; or 100% -

Loss%)

2) x C.P. = S.P. (SP% and SP are given in the question)

3) Cross Multiplication method, ie : 100% = C.P.

SP% = S.P. (SP% and SP are given in the question)

Activity 5: (Cost Price)

1. A chair is sold for $9 800 at a profit of 20%. What is the cost price?

……………………………………………………………………………………………

2. A pair of jeans was sold for $1 800 after a discount of 10%. What was the price before the
discount?

…………………………………………………………………………………………….

3. Mrs. Henderson’s salary after paying tax at 25% is $94 000. What is her salary before tax?

……………………………………………………………………………………………..

4. A 20% profit was made on the sale of a fridge for $68 000. What would be its sale price if it was
sold at a loss of 25%?

…………………………………………………………………………………………….

5. A pair of jeans was sold for $2 380 after a discount of 20%. What was the price before the
discount?

……………………………………………………………………………………………
6. A 20% profit is made on the sale of a fridge for $80 000. What would be the its sale price if it was
sold at a loss of 25%?

………………………………………………………………………………………………

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Simple Interest

 I= ; Amount = Principal + Interest

 Principal (P) is money deposited or borrowed.

Rate (R) is the percentage interest used.
Time (T) must always be converted to years if not given as such.
Amount (A) refers to the total sum of money held or owed after interest is added.

 Note: Ensure that you practice transposing the simple interest formula for
principal, rate and time.

Activity 6: (Simple Interest)

1. Rearrange I = PRT/100 to make the following letters the subject of the formula:
a) P (b) T (c) R

….……………………… ……………………… …………………………..…

2. David puts $9 000 in his credit union. How much money does he have altogether after 30 months
if the rate of interest is 15% per annum?

………………………………………………………………………………………………….

3. Susan borrows $20 000 from her bank whose simple interest rate on loans is 13%. Find:
a) The interest she pays if she keeps the money for 18months

…………………………………………………………………………………………
b) Her total repayment

…………………………………………………………………………………………

4. Calculate:

a) T; given P=$50 000, R=10 & I=$1000: ………………………………………………..

b) P; given T=2 years, R= 5% p.a. & I= $500: …………………………………………..

c) R; given P=$120 000, T= 6months & I=$200: ………………………………………..

5. (a) $10 000 is borrowed at 15%p.a. After what length of time is the simple interest equal to the
loan?

………………………………………………………………………………………………

(b)What is the rate of interest that should be given for $25 000 to amount to $30 000 after 18
months?

………………………………………………………………………………………………

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Compound Interest/Appreciation/Depreciation

Note: Compare the concept of compound interest with simple interest. Also compare
appreciation and depreciation and the calculation similarity with compound interest.

Explain, in your own words, the following concepts:

i) Compound Interest:

……………………………………………………………………………………..

ii) Depreciation:

………………………………………………………………………………………

iii) Appreciation:

….……………………………………………………………………………………

Activity 7: (Compound Interest/Appreciation/Depreciation)

1. (a) Kimberly deposits $70 000 in her bank. What is the amount in the bank after 3 years
compound interest at 8%?

….………………………………………………………………………………………………….

(b) What would be the balance in Kimberley’s account if she had withdrawn $12 000 at the end
of year one?

….………………………………………………………………………………………………….

2. (a) Peter takes out a loan of $500 000 to start a new business. How much must he repay if he
borrows the amount for 3 years at 12 %?

….…………………………………………………………………………………………………..

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 (b) What is the amount that Peter would have outstanding if he pays back $90 000 at the end of
year one and $120 000 at the end of year two?

….……………………………………………………………………………………………………

3. An apartment built for $150 000 increases in value by 6% each year. How much is it worth after 2
years?

….…………………………………………………………………………………………………..

4. A pickup truck depreciates in value at a rate of 10% per annum. What will be the value of the
truck in two years’ time, if it is now worth $350 000?

….………………………………………………………………………………………………….

Hire Purchase/Mortgage

 Hire Purchase Price is the total cost of the item which includes the deposit made plus the total
instalments paid over the entire period of time.

 HP price = Deposit + Total Instalments

Activity 8: (Hire Purchase/Mortgage)

1. A television can be purchased for $18 000 cash or on H.P. for a deposit of 20% and 18 monthly
payments of $900. Find the:
a) H.P. price (b) interest charged

2. A table priced at $9 400 can be bought in two ways.

 Method A: for cash with a 5% discount
 Method B: by H.P. with a 15% downpayment and 12 monthly payments of $750
a) Find the amount payable by EACH method.
Method A Method B:

b) The interest charged by the H.P. method:

…………………………………………. …………………………………………..

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 3. The cash price of an electric drill is $ 24 000. When bought on hire purchase an interest of 20%
of the cash price is added. Find:

a) The HP price:

……………. …………………………………………………………………………
b) The total monthly payments if the deposit is $6 000:

………………………………………………………………………………………….
c) The monthly payment if 12 payments are made

…………………………………………………………………………………………..

4. A house has a cash price of $800 000. The bank offer you a 90% mortgage over 20 years. Find:

a) The deposit payable: …………………………………………………………………

b) The total monthly payments if $7 950 is to be paid each month

………………………………………………………………………………………..

c) The amount you will pay for your house altogether

….……………………………………………………………………………………………

5. A luxury apartment is priced at $2 500 000. An 80% mortgage can be obtained over 15 years.
Find:
a) The deposit payable: …………………………………………………………………...

b) The total monthly repayment if $22 000 is paid each month: …………………………………

c) The total amount paid altogether for the apartment: …………………………………………...

Income Tax

 Gross Income: Total income before tax

 Net Income: Total income after deductions
 Allowance: The part of gross income NOT subjected to tax
 Taxable Income: The part of gross income subjected to tax

Activity 9: (Income Tax)

Tax-free Allowances (per Tax Rate (% p.a.)
annum)
1. (a) What is the tax- free allowance $10 000 personal allowance First $15 000 10%
of a man with a wife and 6 $ 2 000 spouse Over $ 20 000 40%
children? $1 000 per child

……………………………………………………………………………………….
(c) What is his taxable income if he makes $60 000 a year?

………………………………………………………………………………………..
(d) Calculate his annual tax payable

………………………………………………………………………………………..

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 (e) What is his net income

………………………………………………………………………………………..

2. Marilyn has two children and earns $14 000 a year.

a) What is her taxable income:

………………………………………………………………………………………….

b) What is her net income:

….…………………………………………………………………………………………….

Overtime

 Overtime Pay = Number of O.T hours x O.T. rate

 Total Pay = Regular Pay + O.T. Pay

Activity 10: (Overtime)

1. A secretary works a 35-hour week for which she is paid $26,250. She works 6 hours overtime
on Saturday which is paid for at time-and-a-half, and four hours overtime on Sunday which is
paid for at double-time.
Find:
a) Her wage for the normal working week:
……………………………………………….

b) Her overtime pay:

………………… ………………………………………………………………………

c) Her gross wage for the week: …………..……………………………………………..

2. At a chemical factory the basic week is 40-hours. During a particular week Mr. James earned
a gross wage of $51,800 but $14,800 was for overtime.
a) Calculate his basic rate of payment:

…………………………………………………………………………………..
b) If overtime is paid for at double time, calculate how many hours Mr. James worked
overtime

……………………………………………………………………………………

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 3. A man is paid $960.00 per hour for a 40-hour week and he is paid at a time-and-a-half for
overtime. Find how many hours of overtime he worked when his wage for a certain week was
$52, 800.

….……………………………………………………………………………………………….

4. At a factory, the basic week is 40 hours. During a particular week Mr. Ali earned a gross
wage of $49 115, but $15 675 was for overtime:

a) Calculate Mr. Ali’s basic rate of payment:

…………………………………………..…………………………………..…………..

b) If overtime is paid for at time-and-quarter, how many hours Mr.Ali worked O.T.

….…………………………………………………………………………………………….

Ratio and Proportion

 Ratios are written as whole numbers in their simplest form.

Activity 11: (Ratio and Proportion)

1. Write the following ratios in their simpliest form:

a) 15: 30 ………….…… b) 240 : 540 ………………..……… c) 2.2 : 1.1 …..…………………

d) 1.25 : 0.5 …………………………..… e) 3 : ……………………………..…..………….…..

g) 2 : 1 : 1 ………….…………… h) 3m : 60cm ..…………..……… i) $6 : 20c ………………..

2. Two brothers aged 15 and 10 are given $3000 to be divided between them in the ratio of

their ages. How much would each receive?

……………………………………………………………………………………………..

3. A piece of ribbon is cut in the ratio 5 : 7. If the shorter piece is 40cm, how long was the

ribbon before it was cut?

……………………………………………………………………………………………...

4. The Smith family and the Radcliff family is to go on holiday together. The cost of holiday is
$62,000 and divided in the ratio of the number of people in each family. Mr. and Mrs. Radcliff have 2
children and Mr. and Mrs. Smith have 5 children. Calculate how much each family should pay.

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5. A circle is divided into four parts A, B, C, & D in the ratio 1: 3: 5: 6 respectively. Calculate:

(a) the fraction that part B is of the circle. (b) the size of the angle, in degrees, for part D.

6. A factory makes 65 items in 7 days. How many days would it take to make 100 items?

….……………………………………………………………………………………………………………

7. 10 men can plant a field in 8 days. How long will it take 24 men to plant the field if they work at the
same rate?

….……………………………………………………………………………………………………………

8. A farmer has enough winter feed to last his herd of 16 cows for 24 days. If he sold 4 of his cows, how
long would the winter feed last?

….…………………………………………………………………………………………………………….
.

Commission

 Commission is a form of wage compensation whereby payment amounts is based on a

specific performance criteria. For example, payment based on sales quantity.

Activity 12: (Commission)

1. A man receives a monthly salary of $25 000 together with a commission of 5% on all sales over
$15 000 per month. Calculate his TOTAL salary in a month in which his sales amounted to
$105000.

….……………………………………………………………………………………………………
..

2. A car salesman is paid by commission only, based on the value of the cars he sells at a rate of
2.5%. What is his salary for a particular month in which he sells cars to the value of $4million?

….……………………………………………………………………………………………………

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 CSEC Practice Questions

1. Brenda paid $462 for a cake mixer after a sales tax of 10% was added to the marked price. What
was the price of the mixer BEFORE tax?

2. Rose received $13 725 simple interest on a sum of money she invested in the Bank. How much
did she invest if she kept the money in the bank for 3 years and the interest rate was 4.5%?

3. A man’s gross salary is $52 000 per annum. He contributes 2% of his salary to a medical scheme
and pays 20% of his taxable income as income tax. Other non-taxable allowances are:
 $15 000 p.a.……………Personal allowance
 $30 per month……..…..Social security
(a) Find the man’s Taxable Income (b) The tax paid monthly

4. A Refrigerator can be purchased for $40 500 cash, or on Hire Purchase for a deposit of 20% and
30 equal monthly instalments of $1300. Calculate:
a) The hire purchase price

b) the interest charged as a percentage of the cash price

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5. A man receives a monthly basic salary of $8000 together with a commission of 11% on all sales
over $25 000 per month. Calculate his TOTAL salary in a month in which sales amounted to
$225 000

6. The diagram below, not drawn to scale, shows two jars of peanut butter of the same brand. Which
jar is the better buy? (Show working to support your answer)
Jar A Jar B

650g for $4.80 430g for $3.20

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