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Financial Maths, STD2 EQ-Bank 28

Chen earns an annual salary of $72 800. He is entitled to four weeks annual leave with 17.5% leave loading. A spreadsheet is used to calculate his total holiday pay.

Total holiday pay = 4 × weekly wage + 4 × weekly wage × 17.5%

A spreadsheet showing Chen's holiday pay calculation is shown.

  1. What value from the question should be entered in cell B5?   (1 mark)

  2. Write down the formula used in cell B9 to calculate the weekly wage, using appropriate grid references.   (2 marks)
  3. Verify the amount of Chen's total holiday pay using calculations.   (2 marks)
Show Answers Only

a.   \(4\)

b.   \(=\text{B4}/52\)

c.    \(\text{Total holiday pay}=\text{weekly wage}\times 4 +\ \text{weekly wage}\times 4\ \times 17.5\%\)

\(\text{Total holiday pay}=1400\times 4+1400\times 4\times\dfrac{17.5}{100}=5600+980=$6580\)

Show Worked Solution

a.    \(\text{Chen gets 4 weeks leave }\rightarrow\ 4\)
 

b.    \(\text{Weekly wage }=\dfrac{\text{Annual salary}}{52}\)

\(\text{Formula: }=\text{B4}/52\)
 

c.    \(\text{Total holiday pay}=\text{weekly wage}\times 4 +\ \text{weekly wage}\times 4\ \times 17.5\%\)

\(\text{Total holiday pay}=1400\times 4+1400\times 4\times\dfrac{17.5}{100}=5600+980=$6580\)