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Earning and managing money

Syllabus topic — FM1 Earning and managing money

Calculate payments from a salary

Calculate wages using hourly rate, overtime rates and allowances

Calculate annual leave loading and bonuses

Calculate earnings based on commission, piecework and royalties

Determine deductions and calculate net pay

Evaluate a prepared budget

1.1 Salary and wages

Salary

1.1

Salary is a payment for a year’s work which is then divided into equal monthly, fortnightly or weekly payments. People who are paid a salary include teachers and nurses.

Advantages

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Permanent employment

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Superannuation, sick and holiday pay

Disadvantages

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No overtime for extra work

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Hours are fixed

Converting salary to weeks, fortnights and months

1 year = 52 weeks

Example 1

1 year = 26 fortnights

1 year = 12 months

Calculating from a salary

Mitchell earns a salary of $65 208 per annum. He is paid fortnightly. How much does he receive each fortnight? Assume there are 52 weeks in the year.

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ISBN: 9781107627291

© The Powers Family Trust 2013

Photocopying is restricted under law and this material must not be transferred to another party

Cambridge University Press

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Preliminary Mathematics General

Solution

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Write the quantity to be found.

Divide the salary by the number of fortnights in a year or 26.

Evaluate and write using correct units.

Write your answer in words.

Fortnightly pay = 65 208 ÷ 26

= $2508.00

Mitchell is paid $2508 per fortnight. Wages

Wage is a payment for work calculated on an hourly basis. People who are paid a wage include shop assistants, factory workers and mechanics.

Advantages

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Permanent employment

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Superannuation, sick and holiday pay

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Overtime payments for extra work

Example 2

Disadvantages

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No incentive to work hard each hour

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Hours are fixed

Calculating a wage

Jasmine is paid at a rate of $1098 for a 40-hour week. a How much does Jasmine earn per hour? b What wages will Jasmine receive for a week where she works 38 hours?

Solution

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Write the quantity to be found.

Divide the amount by the number of hours worked. Evaluate and give answer correct to two decimal places.

Write the quantity to be found.

Multiply the rate by the number of hours worked. Evaluate and write using correct units.

Write your answer in words.

Salary

A payment for a year’s work, which is then divided into equal monthly, fortnightly or weekly payments.

a

Wage per hour = 1098 ÷ 40

= $27.45

Jasmine earns $27.45 per hour.

b

Wage for 38 hours = 27.45 × 38

= $1043.10

Jasmine receives $1043.10 for the week.

Wage

A payment for a week’s work and is calculated on an hourly basis.

ISBN: 9781107627291

© The Powers Family Trust 2013

Photocopying is restricted under law and this material must not be transferred to another party

Cambridge University Press

Chapter 1 — Earning and managing money

Exercise 1A

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Emily earns a salary of $92 648. Write, to the nearest dollar, her salary as amounts per: a week. b fortnight. c month.

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The annual salary for 4 people is shown in the table below. Calculate their weekly and fortnightly payments. (Answer correct to the nearest dollar.)

Name

Salary

a

Abbey

$57 640

b

Blake

$78 484

c

Chloe

$107 800

d

David

$44 240

Week

Fortnight

3

What is Zachary’s fortnightly income if he earns a salary of $43 056?

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Find the annual salary for the following people. a Amber earns $580 per week. b Tyler earns $1520 per fortnight. c Samuel earns $3268 per month. d Ava earns $2418 per week.

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Harrison is a civil engineer and who earns a salary of $1500 per week. a How much does he receive per fortnight? b How much does he receive per year?

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What is Yasmeen’s annual salary if her salary per fortnight is $1610?

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Dylan receives a weekly salary payment of $1560. What is his annual salary?

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Stephanie is paid $1898 per fortnight and Tahlia $3821 per month. Calculate each person’s equivalent annual income. Who earns the most per week and by how much?

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