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Financial Maths, STD2 EQ-Bank 32

Ian works in a packaging factory and is paid $0.85 for each box he packs. Last month he worked 160 hours and packed 8960 boxes.

  1. Calculate Ian's total earnings for the month.   (1 mark)
  2. The following month the factory decides to pay Ian a flat hourly rate of $44.50. What percentage increase/decrease is this from his equivalent hourly wage of the previous month. Give your answer correct to 1 decimal place.   (2 marks)
Show Answers Only

a.    \($7616\)

b.    \(\text{6.5% decrease}\)

Show Worked Solution

a.    \(\text{Total Earnings}=0.85\times 8960=$7616\)
 

b.    \(\text{Hourly rate (last month)}=\dfrac{7616}{160}=$47.60\)

\(\text{New hourly wage} = $44.50\ \text{(given)}\)

\(\text{% decrease}=\dfrac{47.60-44.50}{47.60}=0.0651… = 6.5\%\ \text{decrease}\) 

\(\therefore\ \text{Ian’s hourly rate has decreased 6.5%.}\)