THINGS TO REMEMBER CONSUMER · PDF fileConsumer Math Things to Remember 4 NUMBER 10 Your...

THINGS TO REMEMBER

CONSUMERMATHEMATICS

THINGS TO REMEMBER

CONSUMERMATHEMATICS

PREMIER CURRICULUM SERIESBased on the Sunshine State Standards for Secondary Education,

established by the State of Florida, Department of Education

Copyright 2009Revision Date:12/2009

Copyright 2009Revision Date:12/2009

Consumer Math Things to Remember

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Lesson 1 NUMBER 1

You have worked 35 ½ hours and your hourly rate of pay is $10.75; calculate your straight-time pay.

35 ½ changes to 35.5 Hourly rate x number of hours = pay $10.75 x 35.5 = $381.625 Round answer $381.63

HINT: For the ½ hour you should convert the ½ fraction to a decimal. To convert ½ to a decimal, divide the numerator of the fraction (1) by the denominator (2) ??????? 0.5

The problem is now 35.5 hours x $10.75 NUMBER 2

You have worked 39 ¾ hour and your hourly rate of pay is $12.80; calculate your straight-time pay.

39 ¾ hours 3./4 .75 39 ¾ changes to 39.75 hours $12.80 x 39.75 = $508.80 NUMBER 3

You have worked 48 hours. Calculate hours of overtime. You get paid time and a half and your regular rate of pay is $9.00. Calculate overtime pay.

48 hours – 40 = 8 hours overtime 8 hours overtime x 1 ½ x $9.00 hourly rate 8 x 1.5 x $9 = $108.00 overtime Calculate the total pay. 40 hours x $9 = $360 straight time pay $360 + $108 = total pay $468 NUMBER 4

You have worked 46 ½ hours. Calculate hours of overtime. You get paid double time and your regular rate of pay is $7.65 an hour. Calculate overtime pay.

46 ½ hours 46.5 46.5 – 40.0 = 6.5 hours of overtime 6.5 overtime hours x 2 double time x $7.65 = $99.45 overtime pay Calculate the total pay. 40 x $7.65 = $306.00 regular pay $306.00 + $99.45 = $405.45 total pay


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NUMBER 5 Employee Time Card Example Date In Out In Out Hours Sun Mon 7:00 11:00a 12:00 4:00 Tue 7:10 11:10a 11:55 3:55 Wed 7:03 10:57 12:02 3:58 Thu 7:00 10:55 12:02 4:03 Fri 6:58 12:00 12:01 3:59 Sat Calculate the hours, regular time pay, overtime pay (if any) and total pay (if any). Hourly rate of pay is $17.50 and overtime rate of pay is time and a half (1 ½). Regular time pay 40 hrs x $17.50 = $700.00 Overtime pay 8.75 hrs x $26.25 = $229.69 Total Pay $929.69 NUMBER 6 You have an annual salary of $28,450. Calculate your monthly salary. $28,450 / 12 = $2,370.83333=$2,370.833 is your monthly salary. NUMBER 7 You have an annual salary of $28,450. Calculate your weekly salary. $28,450 / 52 = $547.11538 weekly salary You must round to the nearest cent 547.115 round to italic number If the number to the right is 5 or more, round up If the number to the right is less, round to $547.11 $547.12 rounded answer weekly salary NUMBER 8. Your weekly salary is $250.0 plus a 6% commission of your total sales of $4,250.00. Calculate your salary.

$250.00 weekly salary + 6% commission x $4,250 sales

+ .06 x 4,250 = 255.00

$250.00 + 255.00 = $505.00 total weekly salary

NUMBER 9: Your yearly salary is $40,000 plus 40% of your total sales of $250,000. What is your monthly salary? $40,000 + 40% commission x 250,000= salary

.40 x 250,000= $100,000 commission $40,000 salary + $100,000 commission= $140,000 annual salary

$140,000 / 12 = $11,666.666 rounded $11,666.67 monthly answer


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NUMBER 10 Your monthly salary is $4,000 plus 10% of total sales of $25,000. Calculate your yearly salary.

$4,000 + 10% commission x $25,000=mo. Salary

.10 x $25,000= $2,500 commission

$4,000 salary + $2,500 commission = $$6,500 mo. Salary

$6,500 X 12= $78,000 yearly salary

LESSON 2 1. Change 15% to a decimal. Move the decimal point 2 places left .15

2. Your weekly salary is $750. The withholding tax percentage is 17%. What amount will be

deducted from your pay? 17% is .17 and $750 X .17 = $127.50.

3. According to the textbook, most states follow the Federal Tax Codes and allow $1500 per

allowance.

4. Florida has no state income tax.

5. Jack Jones earns $55,000, is married, and the Tax Rate is 2 ½%. Calculate the amount of tax. Jack Jones

Married, 2 exemptions $1500 x 2 = $3000 allowance $55,000 -3,000 = $52,000.00 $52,000 x 2 ½ % =Tax $52,000 x .025 = $1300 tax answer 6. If you halve the tax rate you halve the amount of t ax. 7. Your gross weekly salary is $1,700. Your Medicare rate is 1.5%. What is your Medicare deduction? Change 1.5% to .015 and then multiply $1,700 X .015 = $25.50 Medicare deduction. 8. Your gross pay is $1,675 per month. Your employer deducts 8.65% of your check for Social security and Medicare. How much does your employer deduct?

$1675 x 8.65% =FICA Deduction $1,675 x .0865 =$144.8875=$144.89 deduction.


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9. Annual group insurance costs $5200. The company pays 65% of the costs. How much do you pay? 100% - 65% (company cost) = 35% (your cost) Change 35% to .35 the multiply X $5,200 =$1,820 (your cost) 10. Annual group insurance costs $6000. The company pays 75% of the costs. You get paid weekly. What will be deducted from your check? $6,000 X .25 (your cost) = $1,500. $1,500 / 52 = $28.85 / week

LESSON 3 1. Annual group insurance costs $5200. The company pays 55% of the costs. You get paid every two weeks. What amount is deducted from your check?

$5200 annual cost 100% - 55% = 45% your cost $5200 x 45% = your cost $5200 x .45 = $2,340 $2340 / 26 = $90 deducted every two weeks

2. Your last five years of annual earnings are $40,000, $42,500, $43,000, $43,500, and $44,000. Find the average of these salaries.

$40,000 $42,500 $43,000 $43,500 + $44,000

$213,000

$213,000 / 5 = $42,600 average salary 3. You are age 33 and start with $10,000. In 32 years at 9%, how much money would you have? $10,000 doubles in 8 years at 9% $20,000 doubles in 8 years at 9% $40,000 doubles in 8 years at 9% $80,000 doubles in 8 years at 9% 32 years 4. The average of your last five years of annual earnings is $42,600. Your pension is 50% of this average. What is your pension? $42,500 X .50 = $21,250.


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5. Annual group insurance costs $5200. The company pays 20% of the costs. You get paid every month. What amount is deducted monthly? 100% - 20% (company cost) = 80% (your cost) $5200 (annual group insurance) X .80 = $4160 (your yearly cost) $4160 / 12 = $346.666 = $346.67 (your monthly cost) 6. Find the average of the following dollar amounts: $20,000; $30,000; $40,000; $50,000; and $60,000. $20,000 + $30,000 + $40,000 + $50,000 + $60,000 = $200,000 / 5 = $40,000 7. You are 34 years of age and start with $2,000. You invest at 5%. Use the Double Table to calculate the amount of money your will have at age 62. Money doubles every 14 years at a 5% rate of interest. 62 years of age – 34 years of age = 28. 28 / 14 = 2 “periods”

$2,000 doubles to $4,000 in 14 years and $4,000 doubles to $8,000 in another 14 years.

8. The average of your last five years of annual earnings is $50,000. Your pension is 60% of this average. What is your pension? $50,000 X .60 = $30,000 pension.

LESSON 4 1. Budget is a plan for using money to meet your wants and needs best. 2. Yearly gambling budget = $400. Monthly budgeted amount = $400 / 12 = $33.33. $36.25 spent is greater than $33.33 budgeted. You are over budget. 3. Monthly living expenses vary from month to month. 4. Annual expenses do include income taxes. 5. Total monthly expenses include living expenses. Fixed expenses paid monthly and one twelfth of fixed expenses paid annually. 6. Monthly living = $1885, monthly fixed = $2478, and Annual Expense = $4700 Find the total annual expenses. (Hint: project monthly expenses to yearly and then add.) Monthly living = $1885 X 12 months = $22,620 yearly living expense Monthly fixed = $2478 X 12 months = $29,736 yearly fixed expense Annual Expenses = $4700 = $ 4,700 $57,056


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7. If you budgeted $360.00 for one year for hair services, and spent $25 for hair services the first month, are you under budget. (Hint: divide the yearly budgeted amount by 12 to find an average monthly cost and then compare.) $360 / 12 = $30 average / month. You spent $25, which is less than $30. Therefore you are under budget. 8. Rent or mortgage expenses are considered monthly fixed living expenses. 9. Clothing is a monthly living expense. 10. There are some items that cannot be budgeted.

LESSON 5 1. You purchase an item for $980. Find the state sales tax of 6%. State Sales tax is 6% Use this proportion: 6 = ST 100 980 Cross multiply: 100 X ST and 6 X 980 2. Use the above proportion to find the amount of sales tax .

Cross multiply: 100 X ST and 6 X 980 100ST = 5880 100ST = 5880 100 100 ST = $58.80 state tax 3. You have made a purchase of $980. The state sales tax 6%; county sales tax 1%. Calculate each sales tax and the total tax.

State Sales tax is 6% 6 = ST 100 980 100ST = 5880 100ST = 5880 100 100 ST = $58.80 state tax County Sales Tax 1% 1 = ST 100 980 100ST = 980 100ST = 980 100 100 ST = $9.80 city tax $58.80 + $9.80 = $68.60 total tax 4. If two pounds of butter cost $5.98. How much does one pound cost? Divide the cost of 2 pounds by 2 to get the cost of one pound. $5.98 / 2 = $2.99 for one pound.


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5. Comparison shopping. If a 39 ounce container of ground coffee costs $9.87 and a 13 ounce bag of coffee costs $3.29, which is the best buy? Hint: Find the unit cost then compare. How much per ounce? $9.87 / 39 ounces = .2530769 per ounce $3.29 / 13 ounces = .2530769 per ounce The both cost the same per ounce in this problem. 6. A discount is a markdown or a reduction in price. 7. A gallon of paint is marked $24.99. The clerk tells you paint is on sale at a 30% discount. Find the sales price. (Hint: find the amount of the discount and subtract it from the price marked on the product.) Paint $24.99 30% discount 30 = discount 100 $24.99 100 discount = 749.70 100 discount = 749.70 100 100 Discount = $7.497 round to $7.50 $24.99 – 7.50 = $17.49 sales price 8. Your business buys a product for $199.99. Your business model tells you to mark it up 35%. How much is the mark up? 35% x 199.99 = mark up .35 x 199.99 = $69.9965 round to $70.00 9. Unit cost. Five quarts of motor oil are on sale for $12.65. What is the unit price? $12.65 (cost for 5 quarts) / 5 (units) = $2.53 per unit (quarat) 10. A shampoo comes in two sizes… a 12-fl.oz. bottle that costs $3.32, and a 20 fl.oz. bottle for $5.80. Which is the better buy? $3.32 = $0.27666 $5.80 = $0.29 per oz 12 oz 20 oz Round to $0.28 The 12 oz bottle is the best buy.

LESSON 6 1. A finance charge is the cost of borrowing money or a credit charge. 2. The minimum monthly charge is $10 or 2% of your outstanding balance. Your unpaid or outstanding balance is $1275. Calculate your minimum payment. 2% of $1275 = minimum payment .02 x $1275 = $25.50


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3. Your unpaid balance is $5275. Calculate your minimum payment. 2% of $5275 = minimum payment .02 x $5275 = $105.50 4. The daily periodic interest rate is .05918%, Find the monthly rate. (Hint: Multiply the daily rate by 30 days to get the monthly rate.) .05918% x 30 = 1.7754 1.78% monthly 5. There are two types of consumer loans, single-payment loans and installment loans.

6. You have a single-payment loan for $9,000 for 365 days at 9% annual interest. What is the interest amount and the money due at the end of the loan? $9,000 X .09 = $810. = amount of interest $9,000 + $810 = $9,810 money due at the end of the loan. 7. You have an installment loan of $3000 for 36 months at 10% interest. Use the Installment Loan Table and calculate the monthly payment.

First, in the “Terms in Months” column go down to the number of months, 36. Then go over to the 10.00% column and pick out $3.23 (the amount per $100.) Divide the amount of the loan $3,000 by the $100 which yields 30. Then multiply the per $100 loan amount by 30 to obtain the monthly payment of $96.90.

8. Look at the Installment Loan Table. What is the figure you would use to calculate the monthly payment for a loan of 24 months and 10% interest? $4.61. For 42 months an 10% interest? $2.83. For 60 months at 10% interest. $2.12. How about 60 months at 17.00% interest? $2.49. 9. You have an Installment loan $2,460, 12 months, and a 15% interest rate. Find the cost of the loan.

$2460 = $24.60 100

$24.60 x $9.03 = $222.138 monthly payment ($9.03 from table, term 12 months, 15%) Round $222.138 to $222.14 monthly payment

$222.14 x 12 = $2665.68 total amount Amount paid back – Amount borrowed = Cost of the loan $2665.68 - $2460 = $205.68 interest


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LESSON 7 1. If you have a checking account you need to keep a check register. 2. You should treat ATM withdrawals like written checks. 3. When you “bounce” a check, you have overdrawn your account; you do not have enough money in your account for the bank to pay your check. 4. You add and subtract in order to balance your checkbook. 5. If you write a check for $88.95, what is the amount to be recorded using the quick method? (The rule for using the quick method is round to the tens place. You would round up to $90.00 6. If you write a check for $92.75, what is the amount to be recorded using the quick method? (The rule for using the quick method is round down to $90. 7. Calculate the simple interest earned on $1000 saved at 15% APR for 1 year. ,15 X $1,000 = $150 8. Calculate the simple interest earned on $1000 saved at 6% APR for 6 months. ,06 X $1000 X 6 / 12 = $30. (Why 6 / 12? For 6 months or ½ a year.) 9. Compound interest is interest paid on the original amount and on interest earned from previous periods. 10. American are poor savers.

LESSON 8 1. When you buy individual stocks you must use a licensed stock broker and pay the broker a fee

or commission. When you sell, the same will be true. 2. If you buy stock at a lower price than what you sell it at, you make a profit. 3. The Amount of Increase/ Original Cost = % of Increase. If you bought Buzura Chemical at $20 a share and sold it for $25 a share your % increase would be $5 (the amount of increase / $20 (the original cost) = $5 / $ 20 = 1/ 4 or 25%. 4. The purchase price of stock is $14.75 per share. The dividend is $0.85 per share. What is the annual yield? Dividend / purchase price = annual yield $0.85/$14.75 = .0576271 5.76271% 5. You have purchased a $1,000 bond at 81 ½% paying 6% APR. Calculate the cost of the bond. Calculate the cost of the bond: $1,000 x 81.5% = $1,000 x .815 = $815.00 6. Using the same bond in Number 5 above, calculate the interest.

Calculate interest: $1,000 x 6% =

$1,000 x .06 = $60.00


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7. You have made $12,000 on the sale of your stock. The original cost of the stock was $16,000. Find the percentage of increase. Amount of increase / original cost = percentage increase

$12,000 / $16,000 = 12 /16 = ¾ = 75% increase. 8. Review Number 4 on calculating annual yield. 9. You buy Bizura Chemical at $20 per share and sell it for $15 per share. Cost of stock per share – selling price per share = loss per share. $20 - $15 = $5 loss per share. 10. Review Number 4 above on calculating annual yield.

LESSON 9 1. You have to look at health care insurance as almost mandatory – like car insurance. 2. 50% means .50 and ½ of something. 75% means .75 and ¾ of something. 100% means 1.00 and the whole “thing” so 100% of $100 means all of it or $100. 300% means 3.00 or 3 wholes, etc. 3. A health plan costs $2,885. The employer pays 90% of the cost. What do you pay?

100% - 90% = 10% your cost $2,885 x 10% = $288.50 4. Same health plan as in Number 3 above. How much should you budget monthly?

Your cost/ 12 months = your monthly budgeted cost. $288.50/12 = $24.041666 $24.04 monthly

5. For term life insurance, you can get the largest amount of coverage for the smallest

amount of money. (Whole life insurance is one of the “other” kinds of life insurance and is not discussed in this book.)

6. According to the table above, a female age 35 would pay $2.29 annual premium for every $1000 of life coverage. 7. Assuming you are a 50 year-old male, and want to purchase 5 year term life insurance, what is the yearly cost? (Use the table above.)

You are a 50 year old male. You want $700,000 in term life insurance. Calculate the yearly cost. Calculate the monthly cost.


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$700,000/$1,000 = 700 units 700 x $5.84 $4,088.00 yearly $4,088/12 = $340.6666 $340.67 monthly 8. You can only use doctors that are listed by the PPO. 9. HMO, health maintenance organization, has you go to your designated primary doctor who then has to authorize, refer, visits to specialists. 10. Medical insurance rates vary by age and gender

LESSON 10 1. Books on household budget suggest you spend anywhere from 20 to 25% of your gross income on housing. 2. You are paying $1,175 a month for rent and you earn $42,500. What percent of your income are you spending for rent? $1175 x 12 = $14,100 yearly rent X% = $14,100 100 $42,500 42,500 x = 1,410,000 42500x = 1410000 42500 42500 X = 33.176% 33.18% 3. 50% of what is 200?

50/100 = is 200/of X(what) 50 times X = 100 times 200 50X/50 = 20000/50 x = 400

4. What % of 400 is 200?

X/100 = is 200/ of 400 400 times X = 100 times 200

400X/400 = 20,000/400 (put line through italicized) X = 50% 5. 50% of 400 is what?

50/100 = is what/ of 400 50/100 = X/400

100X/100 = 20000/100 X = 200 6. You make $45,000. The bank will loan 250% of your income. What is the amount the bank will loan? $45,000 x 250% $45,000 x 2.5 = $112,500


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7. Change 275% to a decimal. 275% = 275 = 5 x 55 = 5 x 11 = 11 fraction 100% 100 5 x 20 5 x 4 4 11/4 = 2.75 decimal 8. Change 75% to a decimal.

75% = 75 = .75

100% 100 9. When you lease a car you have to pay a license fee and a title fee. 10. When you rent a car you do have to pay for gasoline used.

Author: Leon Kriston Copyright 2009

Revision Date:12/2009

Author: Leon Kriston Copyright 2009

Revision Date:12/2009

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