1. Calculations In Everyday Contexts.

2. Wage Rises
Example 1.
A computer operator earning £16152 per annum is given a wage rise of £2400. Calculate :
(a) The new annual wage.
(b) The new monthly wage.
Solution
(a)
The new annual wage = old wage + pay rise. =
= £ per annum.
(b)
Monthly salary = annual salary  12 months
= £  12
= £1546 per month

3. Example 2.
Jane earns £18564 per year. She is given a 7 % pay rise but is still paid weekly. What does Jane earn per week?
Solution.
Calculate Jane’s pay rise:
7 % of £ =
0.07 x £18 564
= £
New wage =
= £
For a weekly wage divide by 52
Weekly wage =  52 =
£ per week.

4. Commission
Example 1.
Sam is paid a basic wage of £450 a month and 3.5% commission on sales he makes. Calculate his total salary in a month when he sold £ worth of goods.
Solution.
Commission =
3.5% of
= x
= £1575
Total wage = basic + commission =
= £ 2025

5. Example 2.
Emily is paid a basic wage of £ 678 per month and 7.5% commission on sales she makes over the value of £ Calculate her total salary in a month when she sells £ worth of goods.
Solution.
Amount of sales commission is paid on = –
= £27 500
Amount of commission =
£ x 0.075
= £
Total salary = basic + commission =
= £

6. Overtime & Bonuses. Example 1.
If John’s normal wage was £8.60 an hour , calculate his wage at :
(a) Double time (b) Time and a half.
Solution
(a)
Double time = 2 x normal wage
= 2 x 8.60
= £17.20
(b)
Time and a half = normal wage plus half as much again. =
= £12.90

7. Example 2.
Billy is paid £20.40 an hour for a 35 hour week and time and a half for any overtime he does. Calculate his wage in a week when he worked 43 hours .
Solution.
Normal wage =
20.40 x 35 =
£714
Overtime worked =
43 – 35 =
8 hours
Overtime pay =
= £30.60
Overtime wage =
30.60 x 8 =
£244.80
Total wages = =
£958.80

8. Hire Purchase.
Example 1.
I buy a bike on Hire Purchase (H.P) for a deposit of £20 and 12 monthly payments of £14.50.Calculate the total H.P price.
Solution.
H.P cost = Deposit + Monthly Payments.
Monthly Payments =
12 x 14.50
= £174
H.P price = =
£194

9. Example 2.
A television costs £350 cash price. It can be bought on H.P for a deposit of 10% of the cash price and 2 years of monthly payments of £ Calculate the difference between the cash price and the H.P price.
Solution
Deposit =
10% of 350
= £35
Monthly payments =
24 x =
£420
Total H.P price = =
£455
Difference in price =
H.P – C.P =
= £105

10. Example 3.
A car with a cash price of £ can be bought on H.P for a 15% deposit and a monthly payment of £210 for 3 years. Calculate the total H.P costs.
Solution.
Cost of deposit:
15% of 8500 =
£1275
Monthly payments
3 years = 36 months.
210 x 36 =
£7560
Total H.P price:
£1275 +
£7560 =
£8 835

11. Insurance Premiums. Example 1.
How much would a £ house cost to ensure if the insurance company charges £2.76 per £1000 insured ?
Solution.
£1000 worth of insurance =
£2.76
£ worth of insurance =
2.76 x
240
= £662.40

12. Example 2.
How much would a house worth £ with contents valued at £ be to insure if the buildings premium was £2.32 per £1000 and contents premium £1.54 per £1000 ?
Solution.
House insurance:
2.32 x
185 =
£429.20
Contents insurance:
1.54 x 80
= £123.20
Total insurance costs : £
£123.20
= £552.40