Chapter 9 Time & Money

Learning Objectives  Convert 12-hr clock to 24-hr clock  Convert 24-hr clock to 12-hr clock  Work out differences between 2 times  Read a train/bus timetable  Answer questions based on timetables  Work out basic wages  Work out commission  Calculate income tax  Work with credit problems  Calculate best-buy problems  Calculate household bills  Calculate insurance premiums  Calculate VAT  Do reverse VAT problems  Calculate simple interest  Calculate compound interest  Work with foreign exchange

12-Hr & 24-Hr Clock  12 Hr Clock –Before midday must use am –After midday must use pm –egs  6.50am  9.30pm  24 Hr Clock –Must NOT use am or pm –Must have 4 figures –After midday hours are 13 to 23 –Egs   08.00

Converting Between 12-Hr & 24- HR  12 Hr – 24 Hr  If before midday make sure you have 4 digits  If after midday add 12 to the hours  10.30am  10.10pm  6.50am  24Hr – 12 Hr  If before midday put am and remove 0 if necessary  If after midday put pm and subtract 12  0930  1750  1045

Examples 1. A video is set to record between 1120 and How long is it set for? 2. A train left at 9.20am and arrived at 2.05pm. How long was the journey?

Wages  Basic Pay = Number of Hours×Hourly Rate  Overtime at double time = × 2  Overtime at time and a half = × 1.5 Examples 1. A mechanic is paid £4.20 per hour for a basic 40 hour week. In one week he works for 48 hours. Overtime is paid at time and a half. How much does he earn that week?

Commission  Commission is an incentive to make people work harder.  It is usually a certain percentage of what the person sells.  It is added on to their basic wage Example An estate agent is paid a salary of £11000 plus 0.5% on the sales of all houses. One year he sells houses worth £ How much did he earn that year?

Income Tax  Gross Pay = pay before tax/ deductions  Net Pay = take home pay  Everyone has a tax allowance (this is a amount you are allowed to earn without paying tax)  Taxable income = gross income – tax allowance (this is what you are taxed on)

Income Tax Examples (1) George earns £5800 per year. His tax allowance is £4385 per year and he pays 10p in the £ on his taxable income. How much tax does he earn?

(2) Alex has an annual salary of £ Her tax allowance is £4385 per year. She pays tax at 10p in the £ on the 1 st £1500 of her taxable income, 22p in the £ on the next £26500 and 40p in the £ on the remainder. She is paid monthly. How much tax does she pay each month?

Spending  Credit = deposit + instalments  This lets you but something now and pay for it later Example A caravan costs £6450. It can be bought on credit for a deposit of 23% and 36 monthly instalments of £150. How much more is paid for the caravan when it is bought on credit?

More Spending 2. Hamish buys 1kg of pears and 2kg of apples for £2.73. If pears cost 89p per kg, how much per kg are apples?

Spending  Best Buys Example Jam is available in 2 sizes small 250g 58p large 454g £1.06 Which is better value for money?

Household Bills  Normal bill = Standing Charge + Number of Units×Cost of Units Examples (1)Sarah uses 1782 units of electricity at 6.16p per unit in a quarter. The quarterly charge is £ How much is her bill?

(2) Mr Smith’s house is valued at £ and its contents are valued at £ Using the table below, how much is his annual insurance premium? Building & Contents Insurance Annual Premium for each £1000 insured BuildingsContents £1.50 Minimum £20 p.a. £5.00

Value Added Tax  VAT is usually 17.5% on goods  VAT is usually 5% on gas & electricity bills Examples (1) A restaurant bill is £24 + VAT at 17.5%. What is the total bill?

(2) An electricity bill is £49.14 including VAT at 5%. How much VAT is paid?

Savings  Simple Interest Interest calculate for 1 year and then multiplied for the number of years required Example (1) Find the simple interest at 3.2% paid on £600 invested for (a) 3 years (b) 9 months?

Savings  Compound Interest – interest is calculated each year and added on to the balance Example (2) Find the compound interest at 3.2% paid on £600 invested for 3 years

Foreign Exchange  Change into foreign money ×  Change back from foreign money ÷ Examples 1. If £1 buys krone. How much is 500 krone worth? 2. If £1 buys 1.55 euros. How much would £75 buy?