23/01/2024

Interest
In this topic you will cover:

1. Simple interest
2. Compound interest
3. . Appreciation
4. Depreciation

Objective:
To understand the concept of simple/compound
appreciation/depreciation (Interest)
 Simple Interest
• If you put money into a bank or building
society they will pay you interest on
this money.
• If you have borrowed money, from a
bank or building society for a mortgage
or other loan, you have to pay them
interest.
• Simple interest is calculated on a yearly
basis (annually) and depends on the
interest rate. The rate is often given per
annum (p.a.) which means per year.
In this case the "Interest" is $100, and the "Interest Rate"
is 10%
Of course, Alex will have to pay back the original $1,000
after one year, so this is what happens:

This is the idea of Interest ... paying for the use of the money.
Example
• Casper borrows $2000 from a bank. If the
interest rate is 12% per annum, how much
must Casper repay the bank after 5 years?
𝑃×𝑅×𝑇
• 𝑆. 𝐼 =
100
2000×12×5 120000
𝑆. 𝐼 = 100
= 100
= $1200
• Total amount: principal + interest

Total repayment after 5 years:

$2000+$1200= $3200
• Find the simple interest on a loan of
$600 for 2 months at 7% per annum.
𝑃×𝑅×𝑇
𝑆. 𝐼 = 100 ; change months to years
by dividing by 12.

2
600×7×12 700
𝑆. 𝐼 = 100
= 100
= $7

Note: 2 months written as a fraction of a

2 1
year: 12 or 6
• Find the simple interest on a loan of
1
$100 for 1 years at 16% per annum.
4
𝑃×𝑅×𝑇
𝑆. 𝐼 =
100
5
100×16× 2000
4
𝑆. 𝐼 = 100
= 100
= $20

Note: change mixed fraction to improper

fraction
 Copy and Complete the table by choosing the correct option below

Principal ($) Rate (%) Time (years) Interest ($)

200 3 5
50 5 2
420 2 5
1500 4 8
800 6 0.5
4000 2.5 1

$480 , $5 , $100, $24, $42, $30

• 800
• × 6____
• 4800
• 0.5
• 2400.0
• Find the total amount to be repaid on a
loan of:
• a) $10,000 at 6% per annum for 1 year

b) $15,000 at 8% per annum for 5 years

c) $5000 at 10% p.a for 3 months

d) $5000 at 8% for 6 months

 𝑃×𝑅×𝑇
𝑆. 𝐼 =
100

𝑆.𝐼×100
• P=
𝑅×𝑇

𝑆.𝐼×100
R= 𝑃×𝑇

𝑆.𝐼×100
T= 𝑃×𝑅
 Can you find out what are under the shapes?

Principal Rate Time Interest

$100 6% 6 months/ ½ year $3
$320 5% 2 years $32

$7 10% 5 years $3.50

$350 2% 1 year $7
 Can you find out what are under the shapes?

Principal Rate Time Interest Total amount

$200 3% 6 months $3 $203
$1200 15% 3 years $540 $1740

$150 16% 2 years $48 $198

• $700 is invested at 4% per annum. How long
will it take for the amount invested to reach
$784?
•
• Principal = $700
• Rate= 4%
84×100
• Time=? T= =
700×4
8400
Note: 2800
=3 years
• S.I= $784-$700= $84
• Delbert has $500 to invest. He puts it in a
bank that offers an interest rate of 5% per
annum. How long should he keep his money
there for his principal to double in the
amount he invested?
• Principal =
• Rate=
• Time=? T= =

S.I= =
• Cindy deposits $4000 in her Credit Union
that gives 5% simple interest. How long does
she need to wait before she has $5000?
• Principal =
• Rate=
• Time=? T= =

S.I= =
• What is the rate of interest at a bank if a
deposit of $100 takes 20 years to double in
value?

• Principal =
• Rate= ?
• Time= R= =

S.I= =
Which earns the more interest per annum:

• A. Deposit of $5000 for 3 years at 5%

interest rate

• B. Deposit $4000 for 4 years at 4%

interest rate
 Compound Interest
• If you put money into a bank or building
society they will pay you interest on this
money.
• If you have borrowed money, from a bank or
building society for a mortgage or other loan,
you have to pay them interest.
• Compound interest is interest added to the
principal of a deposit or loan so that the
added interest also earns interest from then
on. This addition of interest to the principal is
called compounding.
 Compound Interest
But the bank says "If you paid me everything back after one year, and
then I loaned it to you again ... I would be loaning you $1,100 for the
second year!"

And Alex pays $110 interest in the second year, not just $100.
Because Alex is paying 10% on $1,100 not just $1,000
 Compound Interest
This may seem unfair ... but imagine YOU lend the money to Alex. After
a year you think "Alex owes me $1,100 now, and is still using my money, I
should get more interest!"
And so this is the normal way of calculating interest. It is called
compounding.
With compounding we work out the interest for the first period, add it
the total, and then calculate the interest for the next period, and so on
..., like this:

It is like paying interest on interest: after a year Alex owed $100

interest, the Bank thinks of that as another loan and charges
interest on it, too.
Question

$14,000 is invested at 7% per annum compound interest.

Find the total amount at the end of two years.

Year Initial ($) Value at end of year ($)

7
1 14000 I1: × 14000= 980
100
New Principal:
14000+980= 14,980
14,980
7
I2: × 14,980=
100
2 1048.60 New principal:
14,980+
1048.60=16,028.60
Total compound interest: $2028.60

Total amount at the end of 2 years:

Question
A man invests $5,000 into a company and expects
to make 5% per annum. How much will his investment
be worth in three years?
Year Initial ($) Value at end of year ($)
5
1 5000 × 5000= 250
100
5000+250= 5250
5
× 5250= 262.50
2 5,250 100
5250+262.50= 5512.50
5
3 5512.50 × 5512.50= $275.63
100
5512.50+ 275.63=
5788.13
Total C.I=
250+262.50+275.63=
• Find the Compound interest on:

• a) $ 4000 at 3% for two years

• b) $ 15000 at 4% for two years

• c) $20000 for 2 years at 2%

• Find the Compound interest on:

• a) $ 4000 at 3% for two years

• 3
Interest 1: 100 × 4000= 120
• New Principal: 4000+120= 4,120
•
3
• Interest 2: 100 × 4120= $123.60
• New Principal: 4120+123.60= $4243.60

• C.I= $120+ $ 123.60=243.60

• Find the Compound interest on:

• b) $ 15000 at 4% for two years

• 4
Interest 1: 100 × 15000= 600
• New Principal: 15000+600= $15,600
•
4
• Interest 2: 100 × 15,600= $624
• New Principal: 15,600 + 624= $16,224
• C.I= $600+ $624 = $ 1224
• Find the Compound interest on:

c) $20000 for 2 years at 2%

2
Interest 1: 100 × 20,000= $400
• New Principal: 20000+400= $20,400
•
2
• Interest 2: 100 × 20,400= $408
• New Principal: 20,400 + 408= $20,808
•
• C.I= $400+ $408 = $ 808
• Ammie borrows $50,000 from her bank to
purchase a car. The bank has a 10%
interest on loans. If she wishes to repay
the loan in three years find the

• a) total compound interest payable

• b) total to be repaid to the bank after three

years
a) total compound interest payable
10
• Interest 1: × 50,000= $5000
100
• New Principal: 50,000 + 5000= $55,000
10
• Interest 2: × 55,000= $5500
100
• New Principal: 55,000 + 5500= $60,500

10
• Interest 3: × 60,500= $6050
100
• New Principal: 60,500 + 6050= $66,550

• C.I= $5000+$5500+$6050=$16,550

• b) total to be repaid to the bank after two

years= $66,550
• A bank gives compound interest at a rate of
2% per annum.
• a) What is the interest on $1000 after 1 year?

• b) What is the principal after 1 year?

• c) What is the interest for the second year?

• d) What is the total compound interest after

two years?
• A bank gives compound interest at a rate of
2% per annum.
• a) What is the interest on $1000 after 1 year?
2
• Interest : 100 × 1000= $20

• b) What is the principal after 1 year?

• Principal: 1000 + 20= $1020

• c) What is the interest for the second year?

2
• Interest : × 1020= $20.40
100

• d) What is the total compound interest after

two years? C.I= $ 20 +$20.40= $40.40
a) Calculate the compound interest on a loan of
$15000 taken for a period of two years if the
interest rate is 8%.

b) How much money should be repaid each

month in interest?

c) How much money should be repaid each

month in total?
• a) Calculate the compound interest on a loan
of $15000 taken for a period of two years if
the interest rate is 8%.
• Interest 1:
8
100
× 15,000= $1200
• New Principal: 15,000 + 1200= $16,200
8
• Interest 2: × 16,200= $1296
100
• New Principal: 16,200 + 1296= $17,496

• C.I: 1200 + 1296= $2496

b) How much money should be repaid each month in interest?

2496
= $104
24
c) How much money should be repaid each month in total?
17496
= $729
24
 Appreciation

Appreciation is a term used to

indicate that a value is increasing.

For example, increasing property

value.
Example, An apartment built for $50,000
increases in value by 6% each year. How much is
it worth after two years?

6
Increase in value in 1st year: × 50,000= $3000
100

Value at the end of 1st year: 50000+3000= $53000

6
Increase in value in 2nd year: × 53000= $3180
100

Value at the end of 2nd year: 53000 + 3180= $56,180

At the moment, Mr Finn pays $800
per month in rent.
His landlord has informed that this
will increase by 5% for the next
two years and by 8% after that.
What will Mr Finn’s rent be in
three years time if he stays in his
current accommodation?
At the moment Mr Finn pays $800 per month in rent.
His landlord has informed that this will increase by 5%
for the next two years and by 8% after that.
What will Mr Finn’s rent be in three years time if he
stays in his current accommodation?
5
Increase in value in 1st year: × 800= $40
100

Value at the end of 1st year: 800+40= $840

5
Increase in value in 2nd year: × 840= $42
100

Value at the end of 2nd year: 840 + 42= $882

8
Increase in value in 3rd year: × 882= $70.56
100

Value at the end of 3rd year: 882 + 70.56= $952.56

Question
David invests $6,000 into a company.
He expects to make an increase of 5% per annum.
How much will his investment be worth after two
years?
Question
David invests $6,000 into a company.
He expects to make an increase of 5% per annum.
How much will his investment be worth after two
years?

5
Increase in value in 1st year: × 6000= $300
100

Value at the end of 1st year: 6000+300= $6300

5
Increase in value in 2nd year: × 6300= $315
100

Value at the end of 2nd year: 6300 + 315= $6615

 Depreciation
Depreciation is a term
used to indicate that a
value is decreasing.

For example, the

decreasing vehicle
value
 A van is bought for $10,000. It
depreciates at a rate of 20%. Find it’s
value after 3 years.
20
Decrease in value in 1st year: × 10,000= $2000
100

Value at the end of 1st year: 10000 - 2000= $8000

20
Decrease in value in 2nd year: × 8000= $1600
100

Value at the end of 2nd year: 8000 - 1600= $6400

20
Decrease in value in 3rd year: × 6400= $1280
100

Value at the end of 3rd year: 6400 - 1280= $5120

A car depreciates at rate of 30%. Initially
it cost $25,000.
How much will it be worth after a year?
A car depreciates at rate of 30%. Initially
it cost $25,000.
How much will it be worth after a year?

Decrease in value in 1st year:

30
× 25,000= $7500
100

Value at the end of 1st year:

25000 - 7500= $17,500.

The value of machinery in a factory depreciates by
10% each year. The machinery was bought for
$72,000. What was its value after 2 years?
The value of machinery in a factory depreciates by
10% each year. The machinery was bought for
$72,000. What was its value after 2 years?

10
Decrease in value in 1st year: × 72,000= $7200
100

Value at the end of 1st year: 72000 - 7200= $64,800

10
Decrease in value in 2nd year: × 64,800= $6480
100

Value at the end of 2nd year: 64800 - 6480= $58,320

 Hire Purchase

When we buy an expensive item, we may not be able

to pay for it all at once, but we may be able to pay
by hire-purchase.

We pay an initial amount called the deposit or down

payment.

We then pay fixed amounts every month. This is

called an instalment or payments.

H.P.= Deposit + Total monthly instalments/payments

The difference is the interest payable on the loan

of goods.
Example

A television can be purchased for $1800 cash or on H.P.

for a deposit of $360 and 18 monthly payments of $90.
Find the:

a) H.P. price
b) Interest charged
c) Percentage interest charged
Example

A television can be purchased for $1800 cash or on H.P.

for a deposit of $360 and 18 monthly payments of $90.
Find the:

H.P. price = deposit + total monthly payments

= $360 + (18 × $90)
= $360 + $1620 = $1980

Interest charged= H.P. price − cash price

$1980 − $ 1800 = $180

𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡
Percentage interest charged= × 100
𝑐𝑎𝑠ℎ 𝑝𝑟𝑖𝑐𝑒
180
× 100=10%
1800
Example

A television set has a cash price of $2000. It can be bought

on H.P. by a deposit of 10% and 24 monthly payments of $90.
Find the:

a) Deposit

b) H.P. price

c) The difference between the HP price and the cash price

d) Write this difference as a percentage of the cash price

A television set has a cash price of $2000. It can be
bought on H.P. by a deposit of 10% and 24 monthly
payments of $90. Find the:

10
Deposit= × 2000= $200
100

H.P. price = deposit + total monthly payments

= $200 + (24 × $90)
= $200 + $2160 = $2360

The difference between the HP price and the cash price

= $2360 − $ 2000 = $360

Write this difference as a percentage of the cash price=

𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 360
× 100 = × 100=18%
𝑐𝑎𝑠ℎ 𝑝𝑟𝑖𝑐𝑒 2000
A video player can be purchased for $1800 cash or
on Hire purchase for a deposit of $180 and monthly
payments of $55 over 5 years.

H.P. price = deposit + total monthly payments

= $180 + ($55 × 5× 12)
= $180 + $3300 = $3480
Cindy purchased a gas stove on Hire Purchase by
paying a deposit of $180 and 10 monthly
installments, the hire purchase price is $1680.
What is her monthly payments?

H.P= deposit + total monthly payments

180 + (10×p) = $1680

Monthly payments =
 Trick question

A bicycle is priced at $280. It can be bought on hire

purchase with a deposit of 20% and 10 equal monthly
payments. What is the hire purchase price, if no
interest is charged?
Let’s do this!!

An iPhone 6S can be bought on a Hire Purchase

plan requiring a deposit of $100 and 9 monthly
payments of $50. It costs $50 more on hire
purchase than by cash. What is the Cash price?
 Mortgages

Houses are expensive to buy. These are usually

bought on a type of hire purchase agreement made
with a bank.

The purchaser first pays a deposit, and the bank

gives them a loan or mortgage to cover the balance.
The mortgage is repayable monthly over a long
period of time.
• Example one: A house costing $80,000 can be bought with
a 10% deposit and a bank mortgage.
• Find the mortgage amount

• Since the deposit is 10% of $80,000, the mortgage

amount will be 90% of $80,000
𝟗𝟎
• × $𝟖𝟎, 𝟎𝟎𝟎 = $ 𝟕𝟐, 𝟎𝟎𝟎
𝟏𝟎𝟎
• OR
𝟏𝟎
• Find deposit first = × $𝟖𝟎, 𝟎𝟎𝟎 = $ 𝟖𝟎𝟎𝟎
𝟏𝟎𝟎
•
Mortgage amount= $80,000 −$𝟖𝟎𝟎𝟎 = $𝟕𝟐, 𝟎𝟎𝟎
• Find the total repaid to the bank if monthly
payments of $720 are made over 25 years.

• Solution

• 25× 𝟏𝟐 × $𝟕𝟐𝟎 = $ 𝟐𝟏𝟔, 𝟎𝟎𝟎.

• This was multiplied by 12 because the payments

are made monthly.
• Try these

1. A house for sale costs $ 70,000. What is the

mortgage if the deposit is 10% of the cash
price.

•
2. A core house has a cash price of $80,000. The
People’s Bank offer you a 90% mortgage over 20
years. Determine:

a. The deposit payable (Note that there is a 90%

mortgage, therefore there will be 10% deposit of
cash price)

b. The total monthly payments if $ 795 is to be

paid each month

c. The amount you will pay for your house

altogether. (Deposit + total monthly payments)
• 3. A luxury apartment is priced at $250,000. An 80%
mortgage ca be obtained over 15 years. Determine:

a)The deposit payable (Note that there is a 90%

mortgage, therefore there will be 10% deposit of
cash price)

b)The total monthly repayment if $2200 is to be

paid each month

c) The amount payable altogether for the house.

(Deposit + total monthly payments)
• A house for sale costs $70,000. What is the
mortgage if the deposit is:

• a) 10% of the cash price

• b) 15% of the cash price
• c) 7.5% of the cash price
• d) 37.5% of the cash price?
 Utility bills

• The most important utilities are

electricity, water and telephone.

• The cost per unit may vary depending

on the number of units used.
 An example of an electricity bill

PREVIOUS PRESENT
6583 6693

METER READING: UNITS USED- 110

(To find units used, subtract Previous reading

from Present reading from table)
• The first 50 units at 60 cents
• The remaining units at 75 cents

• Solution: 110 units used

• Rate: 50 units at 60 cents = $30.00
• 60 units at 75 cents = $45.00

• Total Bill= $30.00+ $45.00 = $ 75.00

•
• Example 2: Water bill
• Fixed charge of $25.00
• First 1000 gallons at $6.50
• Next 20000 gallons at $ 0.01 per gallon
• What is the water bill of a man who uses 6321 gallons of water?
•
• Fixed charge= $ 25.00
• First 1000 gallons= $6.50
• Next 5321(6321-1000) gallons= $0.01 × 5321 = $ 53.21
• Total:$25+ $ 6.50 + $53.21= $ 84.71
•
• If 5% VAT is added on total bill, what is the final bill?
5
• × $84.71 = $ 4.24
100
• Total: $ 84.71 + 4.24= $ 88.95
• Try these questions
• The electricity rates at a residential home are:
•
• Fixed charge: $25.00
• First 100 units 55 cents/unit
• Further units 85cents/unit

• What is the electricity bill for someone who uses?

• 100 units b) 50 units c) 150 units d) 163 units
• Using the rates in question 1, find the bill to
be paid if meter readings during the last
month were:

• PREVIOUS 7134 PRESENT 7156

• PREVIOUS 3089 PRESENT 3142
• PREVIOUS 9135 PRESENT 9241
•
• A monthly telephone bill has a $35 rental charge.
Local calls cost 28 cents each.

• i) What is the bill if :

• a)20 units are used? $40.60 / $44.66
• b)130 units are used?= $ 71.40/ $78.54

ii) IF 10% VAT is added on every telephone bill.

What is the total cost of the bills in a and b?

• iii) How many calls were made if the monthly bill

was
• $36.68 =6 calls b) $77.84=153 calls
• Wages
•
• The amount of money normally paid for each hour of work is
called the basic rate.
• The normal 40-hour week is called the basic week.
• The amount of money earned during a basic week is called the
basic wage.
•
• The basic wage = 𝑇ℎ𝑒 𝑏𝑎𝑠𝑖𝑐 𝑟𝑎𝑡𝑒 × 𝑇ℎ𝑒 𝑏𝑎𝑠𝑖𝑐 𝑤𝑒𝑒𝑘
𝑇ℎ𝑒 𝑏𝑎𝑠𝑖𝑐 𝑤𝑎𝑔𝑒
• The basic week=
𝑇ℎ𝑒 𝑏𝑎𝑠𝑖𝑐 𝑟𝑎𝑡𝑒
𝑇ℎ𝑒 𝑏𝑎𝑠𝑖𝑐 𝑤𝑎𝑔𝑒
• The basic rate =
𝑇ℎ𝑒 𝑏𝑎𝑠𝑖𝑐 𝑤𝑒𝑒𝑘
•
• an example of wages; the example is as follows:
• An operator works for 35 hours a week at a basic
rate of $ 14.75. Calculate his basic wage. Basic wage
= 35 × $ 14.75= $516.25
•
• A seamstress works for a basic wage of $236.25 and
her basic rate is $6.75. Calculate her basic week.
$236.25
Basic week = = 35 hours (dollar signs cancel).
$6.75
•
• A driver is paid $703 for a basic week of 38 hours.
Calculate his basic rate.
$703
• Basic rate= = $18.50
38
• Overtime wage
• The overtime rates are as follows:
• The overtime rate at time and a quarter = 1.25× 𝑏𝑎𝑠𝑖𝑐 𝑟𝑎𝑡𝑒
• The overtime rate at time and a half = 1.5× 𝑏𝑎𝑠𝑖𝑐 𝑟𝑎𝑡𝑒
• The overtime rate at double time = 2× 𝑏𝑎𝑠𝑖𝑐 𝑟𝑎𝑡𝑒
• The overtime rate at triple time = 3× 𝑏𝑎𝑠𝑖𝑐 𝑟𝑎𝑡𝑒
•
• Overtime wage = 𝑜𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑟𝑎𝑡𝑒 × 𝑜𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑤𝑜𝑟𝑘𝑒𝑑
• 𝐺𝑟𝑜𝑠𝑠 𝑤𝑎𝑔𝑒 = 𝑡ℎ𝑒 𝑏𝑎𝑠𝑖𝑐 𝑤𝑎𝑔𝑒 + 𝑜𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑤𝑎𝑔𝑒
𝑜𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑤𝑎𝑔𝑒
• Overtime worked =
𝑜𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑟𝑎𝑡𝑒
•
• Example
• Anita working as a salesclerk is paid a basic
rate of $3.75. During the rush Christmas
season, she works 6 hours overtime on Friday
at time and a quarter, 8 hours overtime on
Saturday at time and a half and 5 hours
overtime on Sunday at double time. Calculate
Anita’s overtime wage for that week.
•
•
• Solution:
•
• Anita’s overtime wage for Friday= 1.25 × 𝑏𝑎𝑠𝑖𝑐 𝑟𝑎𝑡𝑒 ×
𝑜𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑤𝑜𝑟𝑘𝑒𝑑
• 1.25 × $3.75 × 6 = $ 28.13
•
•
• Anita’s overtime wage for Saturday = 1.5 × $3.75 × 8 = $ 45
•
• Anita’s overtime wage for Sunday = 2 × $ 3.75 × 5 = $ 37.50
•
• Therefore, overtime wage = $28.13 + $ 45 + $37.50 = $110.63

•
• b) Anita works a basic week of 40 hours, evaluate her
basic wage.
• 𝑏𝑎𝑠𝑖𝑐 𝑤𝑎𝑔𝑒 = 𝑏𝑎𝑠𝑖𝑐 𝑟𝑎𝑡𝑒 × 𝑏𝑎𝑠𝑖𝑐 𝑤𝑒𝑒𝑘
• $3.75 × 40 = $ 150
•
• c) Hence, determine Anita’s gross wage for that week
during the rush Christmas season.

• 𝑔𝑟𝑜𝑠𝑠 𝑤𝑎𝑔𝑒 = 𝑏𝑎𝑠𝑖𝑐 𝑤𝑎𝑔𝑒 + 𝑜𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑤𝑎𝑔𝑒

• $ 150 + $ 110.63 = $ 260. 63
• Example 2

• At a factory, the basic week is 40

hours. During a particular week, Mr.
Riley earned a gross wage of $513.88.
However, $159.48 was for overtime.
• Calculate Mr. Riley’s basic rate of payment
• Solution: basic wage = gross wage − 𝑜𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑤𝑎𝑔𝑒
•
• = $513.88 − $159.48 = $ 354.40

𝑏𝑎𝑠𝑖𝑐 𝑤𝑎𝑔𝑒 $354.40

𝑏𝑎𝑠𝑖𝑐 𝑟𝑎𝑡𝑒 = = = $ 8.86
𝑏𝑎𝑠𝑖𝑐 𝑤𝑒𝑒𝑘 40
• If overtime was paid for a time and a half,
determine how many hours Mr. Riley worked
overtime.
• Solution: Overtime rate =1.5 × 𝑏𝑎𝑠𝑖𝑐 𝑟𝑎𝑡𝑒
• 1.5 × $ 8.86 = $ 13.29

𝑜𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑤𝑎𝑔𝑒 $159.48

• Overtime worked= =
𝑜𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑟𝑎𝑡𝑒 $13.29
• = 12 ℎ𝑜𝑢𝑟𝑠
• TRY THIS

• A secretary works a 35-hour week for which

she is paid $ 262.50. She works 6 hours
overtime on Friday which is paid for a time
and a half, and 4 hours overtime on Saturday
which is paid for a time and a half, and 4
hours overtime on Sunday which is paid for
double time. Calculate her gross wage for the
week.
• Salaries
• Annual salary = 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑠𝑎𝑙𝑎𝑟𝑦 × 12
• Monthly Salary = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑎𝑟𝑦 ÷ 12
•
• Example:
• a) The annual salary of a teacher is $ 44,772.
What is his monthly salary?
• $44,772 ÷ 12 = $ 3731
•
• b) A civil servant is employed at a monthly
salary of $1875. How much is her annual salary?
• $1875 × 12 = $ 22,500
• c) The monthly salary of a manager is $ 6715.
Calculate his net annual salary after deductions of
$1976 were made monthly.
• $6715 − $1976 = $ 4739
• $4739 × 12 = $ 56, 868
•
• d) A quantity surveyor earns $75,600 annually.
Deductions of $ 2845 are made each month. Calculate
his monthly salary.
• $75,600 ÷ 12 = $ 6300
• Monthly salary after deductions= $6300 − $2845 =
$ 3455
• Try these

• A teacher is paid an annual salary of $ 32,

160. What is her monthly salary?

• An accountant earns an annual salary of $

78,252. Find his monthly salary

• The monthly salary of a marine biologist is $

6543. Calculate her annual salary.
• The monthly salary of a manager is $ 5875. Calculate
her annual salary after deductions of $976 were
made monthly.

• The monthly salary of a permanent secretary is

$6583. Find his annual salary after deductions of
$1475 were made monthly.

• A surveyor earns $70,740 annually. Deductions of

$2016 are made each month. Calculate his monthly
salary after deductions are made.