1 Review and Applications of Basic Mathematics Exercise 1.4 4. 20-4%2-8=20-8- 3, (20-4) x2-8=16 x2-8=32- 5, 20-(4x2~8)=20-(8-8)=20 7. 54-96 +4+2? =54-9+4=49 9, (54-36)+(4 +2)? =18+67 eta? 64-16 48 (Go Re 43, 3(6+4)? -5(17-20)? = 3x10 -5(-3)? = 3«100-5x9 = 300-45 = 255 45. 20+8x5)-7x(-3)}+9 = 20+40+21)+9 =81+9-9 17. $100(1+-0.06 x-&)= $100(1+0.00739726). $500__ $500 __$500 = $500 _ SEO = $453.51 (+0.05) | 1.057 1.1025 [@+0.04F (4.0421) 2. sug | st 00 Sor 18+36=05 1 19, Concept Questions (Section 1.2) 4. You must retain at least one more figure than you require in the answer. To achieve four- figure accuracy in the answer, you must retain a minimum of five figures in the values used in the calculations. 3. We want seven-figure accuracy in the answer. Therefore, values used in the calculations must be accurate to at least eight figures 5. Any value that represents a count of discrete units, such as the number of months in @ year, is an example. Prescribed payments or values (in contrast to calculated payments Or values that have been rounded) are known with perfect accuracy. For example, the GST rate of 7% and a prescribed monthly payment of $10 may be treated as numbers having complete accuracy. Exercise 1.2 1. = 0.87500 = 87.500% 3. {= 2.3600 = 235.00% 1.4000 = = 140.00% 7. #3; = 0.025000 = 2.5000% “Chapter 1: Review and Applications of Basic Mathematics 1Exercise 1.2 (continued) 2B = 2.0200 = 202.00% 9 M1 13, 15, 7. 19, 21. 23. 26. 21. 29. at 33. 36, 37. 39, 41. 43. 45, 47. 49. 51. 11.3845 = 11.38 0,5545454 ~ 0.5545, 1.0023456 = 1.002 40,09515 ~ 40.10 4 =0.10867 = 16.67% Gy = 0.016667 = 168672 ae = 088408 — BAER, ‘984 = 0.0091667 = 0.916672 $924 0.095 x 2) - $92x1.02015 $454.76(1-0.105 x 44) = $454.76 «0.903750 = $410.99 $3490 $3490 5 = 3384.52 Tro.ta5. gh ~oartea “© 385 ‘se50(1 + 9495)" = $650(1.0525* $15,400 __ $15,400 G98 1.0108333° s6600{1 + 0.085 x 383) Ct 483) _ses00(1.035630) _ oer = $14,435.88 1+0.125%e5 ‘1.028082 ( 0.05369613 = $1000] ——__— 71: sro re) STE $9500 $9500 $1830.07 ” coors ‘001875 ours) fs Business Mathematics in Canada, 6/eConcept Questions (Section 1.3) 4. Ifa quantity equals the base, itis 100% of the base. Ia quantity is twice the base, itis 200% of the base, and so on. la quantity is four times the base, itis 400% of the base. 3. By the same line of reasoning as in Question 1, the Portion is 10 times the Base. Exercise 1.3 Portion Portion ate = 0.0175 = Pettion Se omer $350 Portion = 0.0175 x $350 = $6.13 . $1.50 3. Rate = = SESS -0:190 = 13.0% 5. Rare = Portion , gg - $48. Base 0.60(Base) = $45 $45 Base = $45. g7 =~ $75.00 Portion 7. Rate= = 2333 $75, Portion = 2.383 x $75 = $174.98 Portion _ $434 9. Rate = Portion . $184 2.09 = 200 eo meet ore ee Portion Portion 11. Rate = => — 1.80=Fenion me Base 1805" $60 Portion = 1.50 $60 = $90.00 13. Rare = Portion, g.q75- S148 Base Base 0.075(Base) = $1.46 $1.48 Base ~ S148 jase = Gre ~ 19.47 Portion _ $590 15. Rate = = $820 _ 9.621 - 62.1% ne deneee te gop0 aa ee eee 17. Rare= Portion -, 9,95 = $100 Base Base $100 Base = 3100 - gy 0.95 $105.26 419. Rate = Portion . SO metres_ _ 9 9409 = 4.00% Base 3000 metres Portion 0.005 = Forion $10.00 Portion = 0.00 x $10.04 24 > $0.05 Chapter 1: Review and Applications of Basic MathematicsExercise 1.3 (continued) Portion 23. Rate = "= “Base Portion _ Portion 25. Rares POOR 5 4.305= A Portion =1.305 « $455 = $593.78 27. Rate= Pettey 2.25 = S2128 20. Rare = Potion _, Base _ Portion _$9850 _ 4 gay - 31. 0, Rare = POen = SOP = 4.684 = 168% The trip costs 168% oftheir monthly income. . Disposable income = 100% - 72% = 28% of gross income. Annual disposable income = 12(0.28 « $5850) = $19,656 The cost ofthe trip is Portion __$9850 Base * |" $19,656 of Cecilia's and Nathan's annual disposable income, 33. Shots scored from 2-point zone = Rave x Base = 0.545454 x 33 = 18 Shots scored from 3-point distance = 0.46687 x 15 = 7 Foul shots scored = 0.793 x 29 = 23 Total points scored = 18(2) + 7(3) # 23(1) = BO 36, The budgeted expenses are the Base while the actual expenses are the Portion. 100% = 50.1% = Portion _ $160,100 Rates Base T= “Buaget Budget = soiee = $126,100 (to the nearest $100) Brockton budgeted $126,100 for snow clearance. 37. Total hours in a year = 52 weeks «7 days/week x 24 hours/day = 8736 hours Number of days worked = [(52 ~ 2) weeks x 5 days/week] ~ 7 holidays = 243 days Total hours worked = 243 x 7.5 = 1822.5 Percentage of olal hours that are worked = “2225 100% = 20.9% 4 Business Mathematics in Canada, G/eExercise 1.3 (continued) 39. Percentage of impurities = 100% - 99-45% = #85 % = 0.56% ‘Amount of impurities in a 150-g cake = Rate x Base = 0.0056 x 150 g = 0.840 g = 840mg 41. Discount broker would charge $25 + 800($0.08) = $65.00 Full-service broker would charge __0.022(800 » $21.75) = $382.60 “The discount broker charges $382.80 ~ $85,00 = $317.80 less 4¢ 9317.80 t $317.80 , 490% The percent saved is S207 5 100% = 83.0% 43. Canada's population density = Tae 3.640 people per square km. Japan's population density = meopecrie 337.18 people per square km. Canada’s population density is only a 100% = 1.08% of Japan's population density. 45, 11,542 seats represent 67.50% of capacity. Thats, 11,452 = 0.6750(Cepaciy) sty = 10542 1542 _ 47,099 Capacity = HE = 17,099 seats Seats not sold to season-tickat holders = 17,099 ~ 11,542 = 5557 Rounded to the nearest 100, 5600 seats were not sold to season-ticket holders. 47. Portion of commission retained = Rate x Base = 0.60 x 4.8% = 2.88% income of $160,480 (Portion) is 2.88% of sales (Base). That is, $150,480 = 0.0288 « Sales Stan's Sales volume was $5.225,000 49 Tho expected number of deaths (Portion) among 60,000 males (Base) is Rate x Base ~ 0.0084 60,000 = 170 ‘The number of 36-year-old males in the city of 1.45 millon is 0.0083 x 1.450,000 = 12,036. The expected number of deaths in this group in a year is 0.0084 12,036 = 4 Exercise 1.4 4. Regular weekly earings = $5820° = g1130.77 Equivalent hourly rate = © = IT = $22.31 Overtime houry rate = 1.5($32.31) = $48.47 Gross pay for 39-hour week = $1130.77 + 4(648.47) = $1324.65 3, Regular biweekly earings = $24:802 - ¢2100.00 $2100.00 Equivalent hourly wage = 82 = $26.25 quivalent hourly wage = SZIORND = $20, Hasad worked 3 hours of overtime in the first week and 6.5 hours in the second week. Gross pay = $2100.00 + 9.5(1.5)$26.25 = $2474.06 Chapter 1: Review and Applications of Basic Mathematics 5Exercise 1.4 (continued) 5. 4 13, 15, 17. 19, Regular hours worked = 7.5 + 7.5 + 6 +6 +7: Overtime hours worked = 4.5 +1 + 1.5 =7 Gross earnings = 34.5(817.70) + 7(1.5)($17.70) = $796.50 Output in excess of quota = 4 +6 +7 +6 +10 =35 shirts Total pay = 40($7.50) + 35(S3.00) = $405.00 (#t renewals) x $20 + (# new policies) x $35 + 0.055(Total premiums) |26($20) + 37($35) + 0.055($14,375 + $47,880) October earning: Estimated earnings from Supreme Audio &Video = $2000 + 0.04($55,000) = $4200 Estimated earnings from Buy-Right = $1500 + 0.03($25,000) + 0.06($55,000 ~ $25,000) $4050 .033($50,000) + 0.044($50,000) + 0.055 ($40,000) Gross eaming: a. Eamings = 0.05($20,000) + 0.075($20,000) + 0.10($14,880) = $3988.00 b. For the same eamings from a single straight commission rate, Commission rate x $54,880 = $3988.00 ace paneel ee Commission rate 54,880 100% = .2668% Commission eared in August = $3296.97 - $1500.00 = $1796.97 Hence, Commission rate ($151,342 ~ $100,000) = $1796.97 $1796.97 $51,342 Required monthly commission = $4000 - $2000 = $2000 ‘Commission income on first $50,000 of monthly sales is 0.03($50,000 ~ $25,000) = $750 ‘The combined commission and bonus rate on sales exceeding $50,000 is 3% + 3% = 6%. Hence, Commission rate = 100% = 3.50% 0.06(Sales exceeding $50,000) = $2000 - $750 Soles exceeding $50,000 = $1250 Required monthly sales = $70,833.33 Concept Questions (Section 1.5) 4 r valu tf you invest the same amount of money in each investment. each rate of return has the ‘same importance, The portfolio’s rate of return will then equal the simple average of the individual rates of return, You should calculate a weighted average when some of the values being averaged are ‘more important or occur more frequently than other values. Business Mathematics in Canada, 6/eExercise 1.5 1. Weight each number of TV sets per household by the number of homes with that number Of TVs, The weighted average number of TVs per household in the survey sample is (4x4) + (223) + (83%2)+ (1401) + (5 <0) = 153 254 ar Based on the survey, we estimate the average number of TVs per household to be 1.53. 3. We should weight each “goals against’ figure by the number of games in which that number was scored. an = 40)4200 +312) A) 8) +2()+ 40) 3.50 5. The weighted average interest rate that will be charged on the new $57,500 balance is $37,500(8%) + $20,000(7% 357,500 7. Weight each score by the number of students who obtained that score. The weighted average score is 210) + 6(9) + 9(8) + 7(7)+9(6) + 2(5) + (3) Serer er aereeret coop eee aero 9. Note that the age of receivables (rather than the dollar amount of receivables) is to be averaged. The relative importance of each of the three age classifications is determined by the dollar amount in each category. Hence, the weighting factors are the respective dollar amounts of receivables. The (weighted) average age of accounts receivable is. $12,570(30) + $6850(60)+$1325(90) _ $907,350 z 312,570 + $6850 + $1325 $20,745 ~ “024davs 11. a, The weighted average cost of units purchased during the year is 300($10.86) + 1000($10.47) + 500($10.97) _ 1800 The weighted average cost of the beginning inventory and units purchased during the year is 156($10.55) + 1800($10.674) $10.68 1956 6. Value of ending inventory = 239 x Weighted average cost 239($10.66) $2547.74 13. Menu Menu price % of total satewory (as % of cost) revenue Each “Menu price as a % of cost” should be Appetizers 300 10 weighted by the fraction of revenue obtained Entrees 200 50 _ from the respective food category. The nee 305 tg Weighted average “Menu price as a % of cost” Beverage 250 eae 010(800%) + 0:50(200%) + 0.15(225%4) + 0.25(250%) = input costs (0.10 -+050+0.15-+ 025 ee ee On average, Menu prices = 2.2625(Input costs) Menu prices Therefore, Input costs = = 0.44199(Menu prices) 2.2625 On average, input costs are 44,20% of revenue. Chapter 1: Review and Applications of Basic Mathematics 7Exercise 1.5 (continued) 15, We want the average number of people No. of | Number of working over the course of the year. Period months employees The given figures for the number of Jan. 4 to Mar. 34 3 14 employees added or laid off at various Apr. 4 to Apr. 30, 1 mere21 times are used to determine the May 1 to May 31 1 2148=29 cumulative number of /— people June | to Aug. 31 3 29+11=40 employed. Sept. 1 to Sept. 30 1 40-6 =34 Each number in the thitd column Oct. 4 to Dec. 31 3 34-14=20 must be weighted by the number of months in the second column. The average number employed was (14) +124) +129) +3140) +194) +320) «og 12 No. of ‘Number of shares 17. Each number of shares in the a ‘outstanding (milions third column must be weighted Eortod months a by the number of months in the Jan. 1 to Feb. 28 2 5 second column, The (weighted) Mar. 1 to May 31 3 541 average number of shares June 1 to Oct. 34 5 6+0.5=65 outstanding was Nov. 1 to Dec. 31 2 65 +0.75=7.25 [265)-36)+56 Sa 25))<1millon _ 6 95 milion = Exercise 1.6 1 GST Remittance Quarter Sales — Purchases (Refund) 1 $155,365, $9921.90 2 (340,305) (20,418, 9¢ 3 408,648 24,518.88 4 164,818 "9889.08 3. The GST charged in each case will be 0.08($39,500) = $2370.00 a. With no PST in Alberta, the total price will be $39,500 + $2370.01 b. PST in Ontario = 0.08(639,500) = $3160.00 Total price = $39,500 + §2370.00 + $3160.00 = $45,030.00 PST in Quebec = 0.075($39,00 + $2370) = $3140.25 Total price = $39,500 + $2370.00 + $3140.25 = $45.010.25 5. @, The HST-inclusive price of a $100 (pre-tax) item is $114.00. Then HST 314 cone HST~inclusive price * 17%" gyq “100% = 12.28% b. HST = 0.1228(HST-Inclusive price) = 0.1228($171.35) = $21.04 Milla. 9 scessed vaiue = 16:8528 1000 7000 7. Property tax = «$227,000 8 Business Mathematics in Canada, 6/eExercise 1.6 (continued) 15.0294 4.6423 7900 9149.00 os = $2149.204 + $2167.954 $4317.16 rate increase 9. Total taxes = $467,000 11. a. Tax increase x Assessed value 1000 _ Mill rate increase $2,430,000 = TE SISESS « $6,780,000,000 Mili rate increase = — $2450 _ 4999 = 0.3584 86,780,000 Next year’s mill rate = 7.1253 + 0.3584 = 7.4837 b. Next year’s assessment = 1.05($6.78 billion) = $7.19 billion Next year’s budget = Current year's taxes + $2,430,000 _ 1.1253 a = Tho9 * 86:78 billion + $2,430,000 = $50,739,500 Next year’s schoo! mill rate applied to next year's assessment must generate ‘enough tax revenue to meet next year's budget, That is, Seazs5900+ NM pon New mill rate = $90:739.800 $7,119,000 Review Problems 4. a. (3-3) -20+(2+2") -(6-3)?-20+(2+8) =25-20+10=25-2=23 b. 4(2x3*-28) + (10-4%5) = 4(2 x 9-8) + (10-20) 4x10? + (10) {. 5) 213.85(1~0.095 «= oaae ( 12) $2315 $2315 ae 1) 0.0825» 7, To17a0ai $213.85(1 ~ 0.039583) = $205.39 $2275.40 /,, 0108)? °. $325.75[1+ z *} = $325.75(1.053189) = $343.08 $710 $710 t= aes 7 aio. 7146266 (1+ 299287 231) __ $476.50 $476.50 0775 x 231) _8476.50___ - ¢585.75(1.049048) - 50/527 9. $285.75[ 1.00775 555 | Teo ovpoe Ry 7 9889:78(1.049088) — ong $929.194 ~ $471.593 Chapter 4: Review and Applications of Basic MathematicsReview Problems (continued) 1 “1 13, h. $059(1+ \ 0.0825\° $682 $682 } + Frome? $859(1.020767) + rey oe $876.839 + $672.718 291549.56 = Portion _ 100% Base kate” 80% $100 = $125.00 ‘Two hours = 2(60) = 120 minutes = Portion _ 15 minutes . 49994 - 495 Base 120 minutes ae Rate Portion = Rate x Base Hence, price increase + 0.35 x $2.20 = $0.77 Selling price = $2.20 + $0.77 = $2.97 per share $56,600 26 $2176.92 2x375 $2176.92 + 4.6(1.5) $29.03 = $2372.87 a. Gross biweekly earings = $2176.92 Equivalent hourly wage $29.03 b. Total remuneratio mmission rate (Sales ~ $40,000) ‘Commission rate ($88,630 ~ $40,000) $2188.35 499, = Seay” 100% = 4.80% Commission earnings $3188.35 ~ $100 Commission rate = No. of Number of Period July1 to Aug. 31 Sept. | to Oct. 31 Nov. 1 to Nov. 30 Dec. 1 to Feb. 28 Mar. 1 to Mar. 31 Apr. 1 to Apr. 30 May 1 to June 30 ‘The (weighted) average number of employees was 12 10 Business Mathematics in Canada, 6/2Self-Test Exers A. a. 96- (6-4%)x7-2= 96 -(-10)7 -2 = 164 b. 81 + (S2—16)—4 (2°— 13) = 81 + 9-4-5) = 29 $827.69 ( 41) _ $627.69 3827.69 __, $531.49 140.125» 44 | = SEE + $531.49(1.014041 70.1253 ** 365) * Toasaaa “$9914 D = $756.923 + $538.953 = $1295.88 195) $376.29 $376.29, 50.45( 10,0875 x 198.) __$376.29 _ = $550.45(1.046747)— $208.62 (,, 0.0975)" $2643 $2643 137(1+ 20875)" , $2643 _ - $1137(1.016316) + = 16 e 371+ a | a $1137(1.016316) + 7 oae7g = $8195.16 ae Portion _ 100% Base = Portion x$100 = $59 71 Ree ere 0.15(Income exceeding $64,000) = $5900 Income exceeding $84,000 = ore = $39,333.33, Total net income = $64,000 + $39,333.33 = $103,333.33 Gross biweekly earnings = see =$2346.15 Equivalent hourly rate = Gross pay = $2346.15 + 33(1.5)831.28 = $3894.51 Gross earnings = $1000 + 0.08($10,000) + 0.10($38,670 ~ $30,000) = $2687 Rate of return on the portfolio = Weighted average rate of return = $16,800(-4.3%) + $25,600(- 1.1%) + $31,000(8.2%) ‘$16,800 + $25,600 + $31,000 = 2.10% No. of Cumulative Period months Investment Jan. 1 to Feb. 28 2 $96,400 Mar. 1 to Mar. 31 1 $96,400 - $14,200 = $82,200 Apr. 1 to July 31 4 $82,200 ~ $21,600 = $60,400 ‘Aug. 1 to Oct. 31 3 $60,400 + $23,700 = $84,100 Nov. 4 to Dec. 31 2 $84,100 + $19,300 = $103,400 ‘Average investment during the year 2($96,400) + ($82,200) + 4(60,400) + 3(684,100) + 2(6103,400) ego 12 $81,308.33 Chapter 1: Review and Applications of Basic Mathematics "1Ga 98 @- 03 _ ot, toe y F- -343 — 2C4) u g- bi) -8 22 ye gba ? as at) ee too ay ae —-F+32 — Business Mathematics in Canada, 6/6