Earning Money and Budgeting (Std 2-X)

v1 Financial Maths, STD2 F1 2016 HSC 27a

Alice is researching insurance options before purchasing a car.

Explain what is covered under each of the following types of car insurance:

• Compulsory third-party insurance (CTP)

• Optional third-party property insurance. (2 marks)

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`text(CTP Insurance:)`

`text(This insures a driver against liability)`

`text(if their car injures or kills a person)`

`text(in an accident.)`

`text(Non-compulsory TP Insurance:)`

`text(This insurance covers damage to)`

`text(other people’s property in an accident,)`

`text(but does not cover the driver’s own vehicle.)`

Show Worked Solution

`text(CTP Insurance:)`

♦♦♦ Mean mark 13%.
MARKER’S COMMENT: Again, car insurance causes major issues for students.

`text(This insures a driver against liability)`

`text(if their car injures or kills a person)`

`text(in an accident.)`

`text(Non-compulsory TP Insurance:)`

`text(This insurance covers damage to)`

`text(other people’s property in an accident,)`

`text(but does not cover the driver’s own vehicle.)`

v1 Financial Maths, STD2 F1 2004 HSC 27b

Jack is paid at these rates:

\begin{array}{|l|} \hline \text{Weekday rate} & \text{$\$$15 per hour}\\ \text{Saturday rate} & \text{Time-and-a-half}\\ \text{Sunday rate} & \text{Double time}\\ \hline \end{array}

His time sheet for last week is:

\begin{array}{|l|l|l|l|} \hline & \textit{Start} & \textit{Finish} & \textit{Unpaid break}\\ \hline \text{Friday} & \text{9.00 am} & \text{4.00 pm} & \text{1 hour} \\ \text{Saturday} & \text{9.00 am} & \text{4.00 pm} & \text{1 hour} \\ \text{Sunday} & \text{9.00 am} & \text{1.00 pm} & \text{30 minutes} \\ \hline \end{array}

Calculate Jack's gross pay for last week. (3 marks)
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Jack decides not to work on Sundays. He wants to keep his weekly gross pay the same. How many extra hours at the weekday rate must he work? (1 mark)
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$\$330$
$\text{7 extra hours}$

Show Worked Solution

i.	$\text{Pay(Fri)}$	$=6 \ \text {hours } \times 15.00$
		$=\$90.00$
	$\text{Pay(Sat)}$	$=6 \ \text {hours } \times 1.5 \times 15.00$
		$=\$135.00$
	$\text{Pay(Sun)}$	$=3.5 \ \text {hours } \times 2 \times 15.00 $
		$=\$105.00$

$\therefore \text{Gross pay }$	$=90+135+105$
	$=\$330$

ii. $\text{Pay on Sun}=\$105$

$\text{Weekly equivalent hours}$	$=\dfrac{105}{15}$
	$=7 \ \text{hours}$

$\therefore \ \text{He will have to work 7 extra hours on a weekday}$

v1 Financial Maths, STD2 F1 2012 HSC 27a

Nina earns a gross weekly wage of $980. Each week her deductions are:

• tax instalment of $280.40
• health fund contribution of $22.60
• union fees of $17.00.

She also pays $3380 over the year as her share of the household expenses.

What percentage of her net wage does Nina pay for household expenses? (3 marks)

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`text{9.85%}`

Show Worked Solution

MARKER’S COMMENT: Full marks awarded for clearly showing weekly net wage, then using annual conversion before percentage calculation.

`text(Gross wage)`	`= $980 \text(per week)`
`text(Weekly Deductions)`	`= 280.40 + 22.60 + 17.00`
	`= $320.00`
`text(Net Weekly Wage)`	`=980-320 = $660.00`
`text(Annual Net Wage)`	`=52 xx 660 = $34\ 320.00`

`:.\ text{Household expenses}`	`= 3380/(34\ 320)`
	`= 0.09846… `
	`=\ text{9.85% (to 2 d.p.)}`

v1 Financial Maths, STD2 F1 2022 HSC 21

A real estate agent's commission for selling houses is 2% for the first $900 000 of the sale price and 1.5% for any amount over $900 000.

Calculate the commission earned in selling a house for $1 200 000. (2 marks)

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`$22\ 500`

Show Worked Solution

`text{Commission}`	`=900\ 000 xx 2text{%} + (1\ 200\ 000-900\ 000) xx 1.5text{%}`
	`=900\ 000 xx 0.02 + 300\ 000 xx 0.015`
	`=18\ 000 + 4\ 500`
	`=$22\ 500`

v1 Financial Maths, STD2 F1 2024 HSC 23

Dave works a 40-hour week and is paid at an hourly rate of $20. Any overtime hours worked are paid at time-and-a-half.

Last week, Dave worked the regular 40 hours and some overtime hours. In that week, Dave earned $1250.

How many hours of overtime did Dave work last week? (3 marks)

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$\text{15 hours of overtime}$

Show Worked Solution

$\text {Let X = overtime hours}$

	$\text{Total pay}$	$=(40 \times 20)+\Big(X \times \dfrac{3}{2}\times 20\Big) $
	$1250$	$=800+\dfrac{60}{2}X$
	$\dfrac{60}{2}X$	$=450$
	$X$	$=\dfrac{450\times 2}{60}$
		$=15 \text{ hours of overtime}$

v1 Financial Maths, STD2 F1 2018 HSC 15 MC

Adam was involved in a car accident, and after the investigation, he was found to be the driver at fault.

Which of the following is covered by Adam's compulsory third-party (CTP) insurance?

Cost of repairing a building damaged in the accident
Repairs to Adam's car
Injury to the other driver
Repair cost of the other driver's car

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`C`

Show Worked Solution

`text(CTP insurance covers liability for death or injury)`

♦♦ Mean mark 34%.

`text(to other people, but does not cover property damage.)`

`=>C`

v1 Financial Maths, STD2 F1 2018 HSC 8 MC

A gardener charges $12 per hour, or part thereof, for doing yard work.

What does the gardener charge for working from 8 am until 4.20 pm on a particular day?

$105
$108
$110
$120

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`text(B)`

Show Worked Solution

`text(8 am – 3:20 pm)`	`= 8\ text(hrs 20 mins)`

`text(S)text(ince part of an hour is charged as a full hour,)`

`:.\ text(Charge)`	`= 9 xx 12`
	`= $108`

`=>\ text(B)`

v1 Financial Maths, STD2 F1 2013 HSC 11 MC

An enterprise agreement has the following annual salary arrangements:

Rowan's employer pays 5% more than the enterprise agreement. He is on Step 2 and receives an allowance for Leader 1.

What is Rowan's gross monthly pay?

$3575.50
$3730.00
$3937.50
$4150.00

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`C`

Show Worked Solution

♦ Mean mark 46%

`text(Gross annual pay)`	`=(40\ 000+5000)xx1.05`
	`=$47\ 250`

`:.\ text(Gross monthly pay)`	`=(47\ 250)/12`
	`=$3937.50`

`=>\ C`

v1 Financial Maths, STD2 F1 2018 HSC 21 MC

James earns a gross income of $1200 per week. Each week, 25% of this income is deducted in taxation. James budgets to save 30% of his net income.

How much does he budget to save each week?

$190.00
$240.50
$270.00
$420.50

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`text(C)`

Show Worked Solution

`text(Net Income)`	`= 75text(%) xx 1200`
	`= $900`

`text(Savings)`	`= 30text(%) xx 900`
	`= $270`

`=>\ text(C)`

v1 Financial Maths, STD2 F1 2007 HSC 3 MC

Dan is about to go on holidays for four weeks. His weekly salary is $375 and his holiday loading is 20% of four weeks pay.

What is Dan's total pay for the four weeks holiday?

$400
$1250
$1800
$2150

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`C`

Show Worked Solution

`text(Salary)\ text{(4 weeks)}`	`= 4 xx 375`
	`= $1500`

`text(Holiday loading)`	`= 1500 xx 20%`
	`= $300`

`:.\ text(Total pay)`	`= 1500+300`
	`= $1800`

`=> C`

v1 Financial Maths, STD2 F1 2019 HSC 6 MC

Darlene is 26 years old and has only been driving for a year. She purchased comprehensive motor vehicle insurance. The following excesses apply to claims for at-fault motor vehicle accidents.

- Basic excess of $850 for each claim
- An additional age excess of $1600 for drivers under 25 years of age
- An additional age excess of $400 for drivers 25 years of age or over with no more than 2 years driving experience

How much would Darlene be required to pay as excess if she made a claim as the driver at fault in a car accident?

$850
$850 + $400
$850 + $1600
$850 + $1600 + $400

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`B`

Show Worked Solution

`text(Darlene’s excess = 850 + 400)`

`text{($1600 does not apply as Darlene is 26 years old.)}`

`text{($400 applies because she is 25 or older with limited driving experience.)}`

`=> B`

v1 Financial Maths, STD2 F1 2008 HSC 7 MC

Maya’s regular wage is $20 per hour. One week, she worked 9 hours at double time.

How many hours would Maya need to work at time-and-a-half to earn the same amount?

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`C`

Show Worked Solution

`text(Amount earned at double time)`

`= 9 xx 2 xx 20`

`= $360`

`text(Time-and-a-half rate)`	`= 1.5 xx 20`
	`= $30 text(/hr)`

`:.\ text(# Hours at time-and-a-half)`

`= 360 / 30`

`= 12\ text(hrs)`

`=> C`

v1 Financial Maths, STD2 F1 2014 HSC 13 MC

Mark works as a car salesperson. His commission is based on a sliding scale of 5% on the first $3000 of his sales, 3% on the next $1500, and 1.5% thereafter.

What is Mark’s commission when his total sales are $6,250?

$202.75
$210.50
$216.25
$221.25

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`D`

Show Worked Solution

`text(Commission)`

`= (3000 xx text(5%)) + (1500 xx text(3%)) + (6250 – 4500) xx text(1.5%)`

`= (3000 xx 0.05) + (1500 xx 0.03) + (1750 xx 0.015)`

`= 150 + 45 + 26.25`

`= 221.25`

`=> D`

i.	\(\text{Pay(Fri)}\)	\(=6 \ \text {hours } \times 15.00\)
		\(=\$90.00\)
	\(\text{Pay(Sat)}\)	\(=6 \ \text {hours } \times 1.5 \times 15.00\)
		\(=\$135.00\)
	\(\text{Pay(Sun)}\)	\(=3.5 \ \text {hours } \times 2 \times 15.00 \)
		\(=\$105.00\)

	\(\text{Total pay}\)	\(=(40 \times 20)+\Big(X \times \dfrac{3}{2}\times 20\Big) \)
	\(1250\)	\(=800+\dfrac{60}{2}X\)
	\(\dfrac{60}{2}X\)	\(=450\)
	\(X\)	\(=\dfrac{450\times 2}{60}\)
		\(=15 \text{ hours of overtime}\)

\(\therefore \text{Gross pay }\)	\(=90+135+105\)
	\(=\$330\)

\(\text{Weekly equivalent hours}\)	\(=\dfrac{105}{15}\)
	\(=7 \ \text{hours}\)