PART ONE Mathematics Fundamentals and Business Applications

Chapter 1 Review of Arithmetic

Exercise 1.1

A. 1. 12  6  3  12  2  14

2. (3  8  6)  2  (24  6)  2  18  2  9

3. (7  4)  5  2  11 5  2  55  2  53

4. 5  3  2  4  15  8  23

5. 6(7  2)  3(5  3)  6(5)  3(2)  30  6  24

20  16 4 1
6.    0.2
15  5 20 5
7. 4(8  5) 2  5(3  22 )  4(3) 2  5(3  4)  4(9)  5(7)  36  35  1
8. (3  4  2) 2  (2  2  7 2 )  (12  2) 2  (2  2  49)

 102  (2  98)  100  96  4

9. 250(1  0.08)10  250(2.158925)  539.73

10. (1  0.04) 4  1  1.169859  1  0.17

11. 30  600  2500  12  600  18 000  2500  7200  8300

12. 1  [(1  0.40)(1  0.25)(1  0.05)]  1  [(0.6)(0.75)(0.95)]  1  [0.4275]  0.5725  0.57

Exercise 1.2

24 24:2 12 12:2 6 6:3 2 24:12 2

A. 1.       also 
36 36:2 18 18:2 9 9:3 3 36:12 3

28 28:2 14 14:2 7 7:7 1 28:28 1

2.       also 
56 56:2 28 28:2 14 14:7 2 56:28 2

210 210:10 21 21:3 7 210:30 7

3.     also 
360 360:10 36 36:3 12 360:30 12

360 360:5 72 72:9 8 360:45 8

4.     also 
225 225:5 45 45:9 5 225:45 5

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2 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

144 144:2 72 72:9 8 8:4 2 144:72 2

5.       also 
360 360:2 180 180:9 20 20:4 5 360:72 5

25 25:5 5
6.  
365 365:5 73

365 365:73 5
7.  
73 73:73 1

365 365:73 5
8.  
219 219:73 3
11
B. 1.  1.375
8
7
2.  1.75
4
5
3.  1.666667  1.6
3
5
4.  0.833333  0.83
6
11
5.  1.833333  1.83
6
7
6.  0.777778  0.7
9
13
7.  1.083333  1.083
12
19
8.  1.266667  1.26
15
3
C. 1. 3  3.375
8
2
2. 3  3.4
5
1
3. 8  8.333333  8.3
3
2
4. 16  16.666667  16.6
3
1
5. 33  33.333333  33.3
3

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 CHAPTER 1: Review of Arithmetic 3

1
6. 83  83.333333  83.3
3
7
7. 7  7.777778  7.7
9
1
8. 7  7.083333  7.083
12
D. 1. $5.63

2. $17.45

3. $18.00

4. $253.49

5 $57.70

6. $3.09

7. $13.00

8. $40.00

E. 1. 25 000(15  8)  146 000  25 000(7)  146 000  175 000  146 000  29 000

2. (300  8000)  (180  8000)  63 000  2 400 000  1 440 000  63 000  897 000

3. 1  [(1  0.4)(1  0.25)(1  0.08)]  1  [(0.6)(0.75)(0.92)]  1  [0.414]  0.586

4. 1  [(1  0.32)(1  0.15)(1  0.12)]  1  [(0.68)(0.85)(0.88)]  1  [0.50864]  0.49136

1500
5. 1500   1500  30 000  31 500
0.05
$54 $54 $54
6.    $730
0.12  365 0.12  0.616438 0.073973
225

264 264 264

7.    0.15
4400  365 4400  0.4 1760
146

 45 
8. $620 1  0.14    $620(1  0.017260)  $620(1.017260)  $630.70
 365 
 292 
9. $375 1  0.16    $375(1  0.128)  $375(1.128)  $423
 365 

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4 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

$250 250 $250 250 $250 250

10.    $220 364.90
1  0.15  330
365 1  0.135616 1.135616
$2358 $2358 $2358
11.    $2250
1  0.12  146
365 1  0.048 1.048

 (1  0.03) 24  1 1.032794 
12. $1000    1000   1000[34.426470]  $34 426.47
 0.03   0.03 

 (1  0.02) 20  1  0.485947 
13. $70(1  0.02)    70(1.02) 
 0.02   0.02 
 71.4[24.29737]  $1734.83

[1  (1  0.075) 8 ] 50[1  (0.560702)] 50[0.439297]

14. $50    50[5.857303]
0.075 0.075 0.075
 $292.87

Exercise 1.3
64
A. 1. 64%   0.64
100
300
2. 300%   3
100
2.5
3. 2.5%   0.025
100
0.1
4. 0.1%   0.001
100
0.5
5. 0.5%   0.005
100
85
6. 85%   0.85
100
250
7. 250%   2.5
100
4.8
8. 4.8%   0.048
100
7.5
9. 7.5%   0.075
100
0.9
10. 0.9%   0.009
100

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 CHAPTER 1: Review of Arithmetic 5

6.25
11. 6.25%   0.0625
100
99
12. 99%   0.99
100
225
13. 225%   2.25
100
0.05
14. 0.05%   0.0005
100
1 8.25
15. 8 %   0.0825
4 100
1 0.5
16. %  0.005
2 100
1 112.5
17. 112 %   1.125
2 100
3 9.375
18. 9 %   0.09375
8 100
3 0.75
19. %  0.0075
4 100
1 162.5
20. 162 %   1.625
2 100
2 0.4
21.   0.004
5% 100
1 0.25
22.   0.0025
4% 100
1 0.025
23. %  0.00025
40 100
1 137.5
24. 137 %   1.375
2 100
5 0.625
25. %  0.00625
8 100
0.875
26. 0.875%   0.00875
100
1 2.25
27. 2 %   0.0225
4 100

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6 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

2 16.6
28. 16 %   0.16
3 100
2 116.6
29. 116 %   1.16
3 100
1 183.3
30. 183 %   1.83
3 100
1 83.3
31. 83   0.83
3% 100
2 66.6
32. 66 %   0.6
3 100
25 1
B. 1. 25%  
100 4

1 62.5 625 5
2. 62 %   
2 100 1000 8

175 7
3. 175%  
100 4

5 1
4. 5%  
100 20

1 37.5 375 3
5. 37 %   
2 100 1000 8

75 3
6. 75%  
100 4

4 1
7. 4%  
100 25

8 2
8. 8%  
100 25

40 2
9. 40%  
100 5

1 87.5 875 7
10. 87   
2% 100 1000 8

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 CHAPTER 1: Review of Arithmetic 7

250 5
11. 250%  
100 2

2 1
12. 2%  
100 50

1 12.5 125 1
13. 12 %   
2 100 1000 8

60 3
14. 60%  
100 5

2.25 225 9
15. 2.25%   
100 10 000 400

0.5 5 1
16. 0.5%   
100 1000 200

1 1 1
17. % 
8 8(100) 800

1 100 100 1
18. 33 %  % 
3 3 3(100) 3

3 3 3
19.  
4% 4(100) 400

2 200 200 2
20. 66 %  % 
3 3 3(100) 3

6.25 625 1
21. 6.25%   
100 10 000 16

0.25 25 1
22. 0.25%   
100 10 000 400

2 50 50 1
23. 16 %  %  
3 3 3(100) 6

7.5 75 3
24. 7.5%   
100 1000 40

0.75 75 3
25. 0.75%   
100 10 000 400

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8 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

7 7 7
26. % 
8 8(100) 800

0.1 1
27. 0.1%  
100 1000

3 3 3
28. % 
5 5(100) 500

2.5 25 1
29. 2.5%   
100 1000 40

1 400 400 4
30. 133 %  % (100) 
3 3 3 3

1 550 550 11
31. 183 %  % 
3 3 3(100) 6

2 500 500 5
32. 166 %  % 
3 3 3(100) 3

C. 1. 3.5  3.5(100)  350%

2. 0.075  0.075(100)  7.5%

3. 0.005  0.005(100)  0.5%

4. 0.375  0.375(100)  37.5%

5. 0.025  0.025(100)  2.5%

6. 2  2(100)  200%

7. 0.125  0.125(100)  12.5%

8. 0.001  0.001(100)  0.1%

9. 0.225  0.225(100)  22.5%

10. 0.008  0.008(100)  0.8%

11. 1.45  1.45(100)  145%

12. 0.0225  0.0225(100)  2.25%

13. 0.0025  0.0025(100)  0.25%

14. 0.995  0.995(100)  99.5%

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 CHAPTER 1: Review of Arithmetic 9

15. 0.09  0.09(100)  9%

16. 3  3(100)  300%

3
17.  0.75(100)  75%
4
3
18.  0.12(100)  12%
25
5 
19.  1.666667(100)  166.6%
3
7
20.  0.035(100)  3.5%
200
9
21.  0.045(100)  4.5%
200
5
22.  0.625(100)  62.5%
8
3
23.  0.0075(100)  0.75%
400
5 
24.  0.833333(100)  83.3%
6
9
25.  0.01125(100)  1.125%
800
7 
26.  1.166667(100)  116.6%
6
3
27.  0.375(100)  37.5%
8
11
28.  0.275(100)  27.5%
40
4 
29.  1.333333(100)  133.3%
3
9
30.  0.0225(100)  2.25%
400
13
31.  0.65(100)  65%
20
4
32.  0.8(100)  80%
5

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10 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

Exercise 1.4

A. 1. Total weight  1 1 3  2 3 4  1 5 8  3 5 6  1.3  2.75  1.625  3.83  9.5416 ounces

Total selling value of 4 pieces  $1569  9.5416  $14 970.88

1 3 1 1 3
2. Total hours  15  13  18  21  22
2 4 2 4 4
 15.5  13.75  18.5  21.25  22.75
 91.75
Total cost of labour  91.75  25.75  $2362.56
6
3. Assessed value   56 100  6  5100  $30 600
11
3.75
Property tax  30 600   $1147.50
100
1
4. Retail value  0.83 ¢  2700  $0.83  2700
3
 $2250.00
3
Discount   2250.00  $843.75
8
Credit received  2250.00  843.75  $1406.25

5. 64  $0.75  $ 48.00
1
54  83 ¢  54  $0.83  45.00
3
72  $0.375  27.00
 
42  $1.33  42  $1.3  56.00
Total  $176.00

6. 96  $0.875  $ 84.00
2
330  16 ¢  330  $0.16  55.00
3
144  $1.75  252.00
240  $1.66  240  $1.6  400.00
Total  $791.00

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 CHAPTER 1: Review of Arithmetic 11

B. 1. 1100  0.597  $656.70

1600  0.667  $1067.20
1400  0.765  $1071.00
Total cost  $2794.90
$2794.90
Average cost per litre   $0.681683
4100
 $0.68
 68¢

2. (a) 56  64  70  54  244
Average number of litres  244  4  61
(b) Total cost  56  $0.99  $55.44
64  $1.065  $68.16
70  $1.015  $71.05
54  $1.045  $ 56.43
$251.08
Average cost per litre  251.08/244  $1.029016  $1.029

(c) Average cost per km  $1.029016/8.75  $0.117602  $0.118

3. Weighted hours  3  4  5  2  2  6  4  2  4 1 2  6
 12  10  12  8  4  12
 58
Total hours  3  5  2  4  4  2  20
58
Grade-point average   2.9
20
4. Weighted investment:
January1  February 28 : $7500  2  $ 15 000
March1  July 31: 6600  5  33 000
August1  August 31: 8100 1  8100
September1  December 31: 7800  4  31 200
$87 300
Average investment balance  $87 300  12  $7275
5. (a) Simple average of unit prices
10.00  10.60  11.25  9.50  9.20  12.15 62.70
   $10.45
6 6

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12 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

Amount invested
(b) Number of units purchased 
Unit price

Date Amount Invested Unit Price Number of Units Purchased

February 1 200.00 10.00 200.00
 20.000
10.00
March 1 200.00 10.60 200.00
 18.868
10.60
April 1 200.00 11.25 200.00
 17.778
11.25
May 1 200.00 9.50 200.00
 21.053
9.50
June 1 200.00 9.20 200.00
 21.739
9.20
July 1 200.00 12.15 200.00
 16.461
12.15
Total number of units purchased 115.899

1200.00
(c) Average cost of units purchased   $10.35
115.899
(d) Value on July 31  115.899(11.90)  $1379.20

Exercise 1.5

A. 1. (a) Annualsalary  $31 824

31 824
Semi-monthly payment   $1326
24
31 824
(b) Weekly pay   $612
52
612
Hourly rate   $17
36
(c) Regular pay = $ 1326
Overtime pay  1117  1.5  280.50
Gross pay  $1606.50

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 CHAPTER 1: Review of Arithmetic 13

2. (a) Annual salary  $43 875

43 875
Biweekly pay   $1687.50
26
1687.50
(b) Weekly pay   $843.75
2
843.75
Hourly rate   $22.50
37.5
(c) Regular biweekly pay  $1687.50
Overtime pay  8  22.50  1.5  270.00
Gross pay  $1957.50
3. (a) Monthly pay  $2011.10
Yearly pay  2011.10  12  $24 133.20
Weekly pay  24 133.20  52  $464.10
Hourly rate of pay  464.10  35  $13.26
(b) Regular pay for May  $2011.10
Overtime pay  7.75  13.26  1.5  154.15
Gross pay  $2165.25
4. (a) Semimonthly pay  $975.00
Yearly salary  975.00  24  $23 400.00
Weekly gross pay  23 400  52  $450.00
Hourly rate  450.00  40  $11.25
(b) Gross pay  $1118.44
Regular pay  975.00
Overtime pay  $143.44
Number of overtime hours  (143.44  1.5)  11.25  8.500148  8.5
5. Total hours = 45
Regular hours = 40
Overtime hours = 5
At time-and-a-half, 5 overtime hours are equivalent to 5  1.5  7.5 regular hours
$680.20
Rate of pay   $14.32
47.5

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14 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

6. (a) Biweekly payment  $2123.00

Annual salary  2123.00  22  46 706
Daily pay  46 706  200  $233.53
Hourly rate  233.53  7.5  $31.14
(b) Regular pay  $2123.00
Less: two days  233.53  2  467.06
Gross pay  $1655.94
7. Gross sales  $12 660.00
Less:returns  131.20
Net sales  $12 528.80
Gross commission  12 528.80  0.0975  $1221.56
Less:drawings  720.00
Amount due  $501.56
8. Net sales  $16 244.00
1
Commission: 8 % on first $6000.00  $495.00
4
3
9 % on next $6000.00  585.00
4
11.5% on $(16 244.00  12 000.00)  488.06
Total commission  $1568.06
9. Gross sales  $24 250.00
Less:returns  855.00
Net sales  $23 395.00
Commission: 4.5% on first $10 000  0.045 10 000.00  $ 450.00
6% on next $5000  0.06  5000.00  300.00
8% on remaining $8395  0.08  8395.00  671.60
Total commission  $1421.60

10. (a) Sales  $8125.00

Base salary on quota of $8500  $825.00

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 CHAPTER 1: Review of Arithmetic 15

(b) Sales  $10 150.00

Base salary on quota of $8500  $825.00
1
Commission  6 % on $1650  0.065  $1650  107.25
2
Gross earnings  $932.25
11. (a) Commission at 6.5% on sales of $5830 = 0.065 × $5830 = $378.95.
This is less than $400 guarantee, therefore weekly salary  $400
(b) Commission at 6.5% on sales of $8830  0.065  $8830  $573.95
This exceeds $400 guarantee, therefore weekly salary = $573.95
12. Gross sales  $31 240.00
Less: returns  3% of $31 240.00  937.20
Net sales  $30 302.80
1590.90
Rate of commission   0.0525  5.25%
30 302.80
13. Gross earnings  $566.25
Less: base salary  450.00
Commission:  $116.25
Sales for week  $6550
Quota:  5000
Commission sales  $1550
116.25
Rate of commission   0.075  7.5%
1550
$ Commission $2036.88
14 Net sales    $18 105.60
Rate 0.1125
Net sales  gross sales  returns
18105.60  S  0.08S
0.92S  18105.60
S  19 680

Gross sales were $19 680

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16 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

15. Gross earnings  $637.50

Less: Base salary  464.00
Commission  $173.50
173.50
Commission sales   $1982.86
0.0875
Sales for week  $4800  $1982.86  $6782.86
16. Method A Regular hours  40  12.60  $ 504.00
Overtime pay  3.5  12.60 1.50  66.15
6  12.60  2  151.20
Gross earnings  $ 721.35
Method B At regular rate: 49.5  12.60  $ 623.70
Overtime premium: 3.5  12.60  0.50  22.05
6  12.60  1  75.60
Gross earnings  $721.35
Exercise 1.6
1.
GST collected GST paid 5% of GST payable
Month 5% of sales purchases (GST receivable)
January $27 345.00 $7391.60 $19 953.40
February 12 200.00 3475.00 8725.00
March 29 400.00 43 300.00 (13 900.00)
April 32 515.00 22 500.00 10 015.00
May 7840.00 4904.90 2935.10
5-month totals $109 300.00 $81 571.50 $27 728.50
Cook’s owes the government $27 728.50.

2. Riza’s revenue of $28 350 includes 5% GST.

28 350
GST taxable revenue   $27 000
1.05
GST collected  5% of $27 000  $1350
GST paid  5% of $8000  $400

Riza owes the Canada Revenue Agency $(1350  400)  $950.00

Copyright © 2018 Pearson Canada Inc.

 CHAPTER 1: Review of Arithmetic 17

3. Savings on GST  5% of $780  0.05(780)  $39.00

4. Cost of shirt  $15.00
GST in Regina  5% of $15.00  0.05(15.00)  0.75
PST  6% of $15.00  0.06(15.00)  0.90
Consumer pays  $16.65
5. At Blackcomb, B.C.
Cost of ski pass  $84.00
GST  5% of $84.00  0.05(84.00)  4.20
PST  7% of $84.00  0.07(84.00)  5.88
Amount paid at Blackcomb, B.C.  $94.08
At Mont Tremblant, Que.
Cost of ski pass  $84.00
GST  5% of $84.00  0.05(84.00)  4.20
PST  9.975% of $84.00  0.09975(84.00)  8.38
Amount paid at Mont Tremblant  $96.58
Difference  96.58  94.08  $2.50
6. Total cost in Toronto
Retail price  $625.00
HST  13% of $625.00  0.13(625)  81.25
Total cost in Toronto  $706.25
Total cost in Calgary
Retail price  $625.00
GST  5% of $625.00  0.05(625.00)  31.25
PST  nil
Total cost in Calgary  $656.25
Difference  PST $ 50.00

7. Purchase price of the first item = $78.92  0.25 = $19.73

Purchase price of the second item, including 5% GST = 78.92 – 19.73 = $59.19
Purchase price of the second item = $59.19/1.05 = $56.371429
GST paid = $59.19 – 56.371429 = 2.818571 = $2.82
 22.751 
8. Property tax  125 000    $2843.88
 1000 

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18 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

9. Property tax  225 000(0.019368)  $4357.80

1420.79
10. Semi-annual tax rate   0.007249
196 000.00
Semi-annual tax rate  0.007249(1000)  7.248929
The annual tax rate  2(7.248929)  14.497857
11. (a) Total expenditure  $(3 050 000  2 000 000  250 000  700 000  850 000)
 $6 850 000
Total residential property tax  0.80(6 850 000)  $5 480 000

5 480 000
(b) Tax rate per $1000  (1000)  21.92
250 000 000
 21.92 
(c) Property tax  $175 000   $3836.00
 1000 

Business Math News Box

Newfoundlanders will Notice the HST Increase on Big Ticket Items

Solutions:
1. Current price (including 15% HST): $450 000
Price prior to January 1, 2016 (including 13% HST):
$450 000 / (1.15)  (1.13) = $442 173.91
2. HST payable – (0.15)($180 000 000) = $27 000 000
3. Resale home: Tax exempt = no tax
New home: HST payable = (0.15)($325 000) = $48 750

Review Exercise

1. (a) 32  24  8  32  3  29

(b) (48  18)  15  10  30  15  10  2  10  8

(c) (8  6  4)  (16  4  3)  (48  4)  (16  12)  44  4  11

(d) 9(6  2)  4(3  4)  9(4)  4(7)  36  28  8

108 108 108
(e)    $1520.83
0.12  365 0.12  0.591781 0.071014
216

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 CHAPTER 1: Review of Arithmetic 19

288 288 288

(f)    0.15
2400  365
292
2400  0.8 1920

 225 
(g) 320 1  0.10    320(1  0.061644)  320(1.061644)  339.73
 365 
 150 
(h) 1000 1  0.12    1000(1  0.049315)  1000(0.950685)  950.68
 365 
660 660 660
(i)    625.45
1  0.14  144
365 1  0.055233 1.055233
1120 1120 1120
(j)    1250
1  0.13  365
292
1  0.104 0.896

2. (a) 185%  1.85

(b) 7.5%  0.075

(c) 0.4%  0.004

(d) 0.025%  0.00025

1
(e) 1 %  1.25%  0.0125
4
3
(f ) %  0.75%  0.0075
4
1
(g) 162 %  162.5%  1.625
2
3
(h) 11 %  11.75%  0.1175
4
1 8.3
(i) 8 %   0.083
3 100
1 83.3
(j) 83 %   0.83
3 100
2 266.6
(k) 266 %   2.6
3 100
3
(l) 10 %  10.375%  0.10375
8

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20 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

50 1
3. (a) 50%  
100 2

1 37.5 375 3
(b) 37 %   
2 100 1000 8

2 16 2 50
1
(c) 16 %  3  3

3 100 100
1 6

2 100  66 23 2 5
(d) 166 %   1 
3 100 3 3

1 1
1 1 1
(e) % 2   
2 100 2 100 200

7.5 75 3
(f ) 7.5%   
100 1000 40

3 3
(g) 0.75%  % 
4 400

5 5 1
(h) % 
8 800 160

4. (a) 2.25  2.25 100  225%

(b) 0.02  0.02 100  2%

(c) 0.009  0.009 100  0.9%

(d) 0.1275  0.1275 100  12.75%

5 5
(e)   100  125%
4 4
11
(f )  1.375  1.375 100  137.5%
8
5
(g)  0.025  0.025 100  2.5%
200
7 28
(h)   28%
25 100

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 CHAPTER 1: Review of Arithmetic 21

5. (a) 150% of 140

 1.5 140  210
(b) 3% of 240
 0.03  240  7.2
3
(c) 9 % of 2000
4
 0.0975  2000  195
(d) 0.9% of 400
 0.009  400  3.6
1 3 1 5
6. (a) 4  3  5  6
3 4 2 8
 4.3  3.75  5.5  6.625  20.2083kg


(b) 20.2083 1.20  $24.25

(c) 20.2083  4  5.052083  5.05 kg

(d) 24.25  4  6.0625  $6.06

7. 56  $0.625  $ 35.00
1
180  83 ¢  180  $0.83  $150.00
3
126  $1.16  $147.00
144  $1.75  $252.00

Total  $584.00
30.45  20.20  16.40  14.50 81.55
8. (a)   20.3875  $20.39
4 4
(b) 30.45  2  $ 60.90
20.20  6  $121.20
16.40  9  $147.60
14.50 13  $188.50
30  $518.20
$518.20
Average rate   $17.27
30

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22 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

9. January 1  May 31: 15 000  5  $ 75 000

June 1  July 31: 13 000  2  26 000
August 1  October 31: 11 500  3  34 500
November 1  December 31: 15 500  2  31 000
Total 12  $166 500
$166 500
Average monthly investment   $13 875
12
10. January 1  March 31: 12 000  3  $ 36 000
April 1  May 31: 14 400  2  28 800
June 1  September 30: 12 960  4  51 840
October 1  December 31: 15 840  3  47 520
Total 12  $164 160
$164 160
Average monthly investment   $13 680
12
34 944
11. (a) Monthly remuneration   $2912.00
12
(b) Weekly pay  34 944  52  $672.00
Hourly rate  672.00  35  $19.20
(c) Gross pay for month  3387.20
Regular gross pay  2912.00
Overtime pay  475.20
Overtime hours  475.20  (19.20  1.5)  16.5

12. (a) Semimonthly pay  23 999.04  24  $999.96

(b) Weekly pay  23 999.04  52  $461.52
Hourly rate  461.52  36  $12.82
(c) Regular earnings  $999.96
Overtime pay  12  12.82  1.5  230.76
Gross earnings  $1230.72

Copyright © 2018 Pearson Canada Inc.

 CHAPTER 1: Review of Arithmetic 23

13. (a) Gross sales  11 160

Less: returns  120
Net sales  11 040
Commission: 4% of $6000.00  $ 240
8% of $3000.00  240
12.5% of $[11 040  9000]  255
Gross earnings  $735

(b) Average hourly rate  735  43  $17.09

14. (a) Regular earnings  44  11.20  $ 492.80
Overtime pay  6.5  11.20 1.5  109.20
Gross earnings  $602.00

(b) Overtime premium  6.5  11.20  0.5  $36.40

15. (a) Base salary on quota of $8000  $340.00
Commission  4.75% on $3340  158.65
Gross earnings  $498.65

(b) Hourly rate  498.65  35  $14.25

16. Gross earnings  $441.30
Base salary  375.00
Commission  $66.30
Commission sales  6560.00  5000  $1560.00
Rate of commission  66.30  1560.00  0.0425  4.25%
17. Net sales  2101.05  0.105  $20 010.00
Net sales  Gross sales  Returns
20 010.00  Gross sales  8% of Gross sales
20 010.00  92% of Gross sales
20 010
Gross sales   $21 750
0.92

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24 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

18. Hours worked  47

Regular hours  40
Overtime hours  7
7 overtime hours are equivalent to 7 1.5  10.5 regular hours.
Total hours paid at regular rate  40  10.5  50.5
577.72
Hourly rate of pay   $11.44
50.5
19. (a) Annual salary  1088.75  24  $26 130
Weekly pay  26 130  52  $502.50
Hourly rate of pay  502.50  37.5  $13.40
(b) Gross earnings  $1252.55
Regular earnings  1088.75
Overtime pay  $163.80
Overtime hourly rate  13.40 1.50  $20.10
Overtime hours  163.80  20.10  8.15
20. Gross earnings  $328.54
Less: base salary  280.00
Commission  $ 48.54
Commission sales  48.54  0.06  $809.00
Net sales  5000.00  809.00  $5809.00
Gross sales  5809.00  136.00  $5945.00
21. Gross earnings  $662.30
Regular earnings  35  10.80  378.00
Overtime pay  $284.30
Overtime hours  284.30  (10.80  1.5)  17.549383
Number of hours worked  35  17.549383  52.55
22. GST collected  5% of $76 000  0.05(76 000)  $3800.00
GST paid  5% of $14 960  0.05(14 960)  748.00
GST remittance $3052.00

Copyright © 2018 Pearson Canada Inc.

 CHAPTER 1: Review of Arithmetic 25

23. GST collected:

Parts : 5% of $ 75 000
Labour : 5% of $ 65 650
Total : 5% of $ 140 650 = 0.05(140 650)  $7032.50
GST paid :
Parking fees : 5% of $ 4 000
Supplies : 5% of $55 000
Utilities : 5% of $ 2 000
Other : 5% of $ 3 300
Total : 5% of $64 300 = 0.05(64 300) = $3215.00
GST remittance $3817.50
24. Amount paid in Kelowna, B.C.
 Retail Price  5% GST  7% PST
= 1868  0.05(1868)  0.07(1868)
= 1868  93.40  130.76  2092.16
Amount paid in Kenora, Ont.
 Retail Price  13% HST
 1868  0.13(1868)
 1868  242.84  2110.84
The difference = 2110.84  2092.16 = $18.68

 20.051 
25. Property tax in Ripley  150 000    $3007.65
 1000 
 22.124 
Property tax in Amberly  135 000    $2986.74
 1000 
The person in Ripley pays $20.91 more in property tax.
45 567 000
26. (a) Tax rate = (1000)  46.71143
975 500 000

 46.71143 
(b) Property tax = 35 000    $1634.90
 1000 
2 000 000
(c) Increase in tax rate = (1000)  2.050231
975 500 000

 2.050231 
(d) Additional property tax = 35 000    $71.76
 1000 

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26 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

Self-Test

 45 
1. (a) 4320 1  0.18    4320(1  0.022192)  4415.87
 365 
 105 
(b) 2160  0.15    2160(0.043151)  93.21
 365 
 285 
(c) 2880 1  0.12    2880(1  0.093699)  2610.15
 365 
410.40 410.40
(d)   4623.33
0.24  135
365 0.088767
5124 5124
(e)   5489.46
1  0.09  365 0.933424658
270

175
2. (a) 175%   1.75
100
3 3 1 3
(b) %    0.00375
8 8 100 800
1 5 5 1 5 1
3. (a) 2 %  %    
2 2 2 100 200 40

2 2 16 2 50
50
(b) 116 %  100%  16 %  1  3  1  3  1 
3 3 100 100 300
1 7
 1 
6 6

4. (a) 1.125  1.125  100  112.5%

9
(b)  0.0225  0.0225  100  2.25%
400
5. 72  $1.25  $ 90.00
2
84 16 ¢ = 84  $0.16  $ 14.00
3
40  $0.875  $ 35.00
48  $1.33  48  $1.3  $ 64.00
Total $203.00

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 CHAPTER 1: Review of Arithmetic 27

6. 5  $9  $ 45
6  $7  $ 42
3  $8  $ 24
6  $6  $ 36
Total 20  $147
147
Average cost   $7.35
20
 1 1 3 5
7. Total size =  5  6  4  3  sq. metres
 4 3 8 6
  sq. metres
 (5.25  6.3  4.375  3.83)
= 19.7916 sq. metres
Sales value = 15120  19.7916
= $299 250.00

8. January 1  February 28 : 7200  2  $14 400

March 1  July 31: 6720  5  33 600
August 1  September 30 : 7320  2  14 640
October 1  December 31: 7440  3  22 320
Total 12 $84 960
84 960
Average monthly balance =  $7080
12
9. Annual salary  1040  24 = $24 960.00
Weekly pay  24 960.00  52  $480.00
Hourly rate of pay  480.00  40  $12.00
10. Net sales  0.885  5880.00  $5203.80
806.59
Commission rate   0.155  15.5%
5203.80
11. Weekly pay  26 478.40  52 = $509.20
Hourly pay  509.20  38 = $13.40
Regular monthly pay  26 478.40  12  $2206.53
Overtime earnings  13.40  8.75  1.5  175.88
Gross pay  $2382.41

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28 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

12. Total hours  8.25  8.25  9.5  11.5  7.25  44.75

Regular hours  8  8  8  8  7.25  39.25
Overtime hours  0.25  0.25  1.5  3.5  5.50
Regular pay  39.25  16.60  $651.55
Overtime pay  5.5  16.60  1.5  136.95
Gross earnings  $788.50

13. Total hours  52.5

Regular hours  44.0
Overtime hours  8.5
At time-and-a-half, 8.5 overtime hours are equivalent to 8.5  1.5  12.75 regular hours
783.15
Hourly rate of pay   $13.80
56.75
14. Base salary on first $4500  $400.00
Commission on next $2000 = 0.11  2000  220.00
Commission on additional sales = (8280  6500)  0.15  1780  0.15  267.00
Gross earnings  $887.00

15. Total value $6400.00  $20.00  $6420.00

GST 5% of $6420.00 $321.00
Manitoba PST 8% of $6420.00 513.60 834.60

Total purchase price $7254.60

16. Purchase price $17.95

Less discount 2.50
Net price $15.45
Add shipping charge 1.45
Total cost before taxes $16.90
HST 15% of $16.90  2.535 = $2.54

Final purchase price is $19.44

Copyright © 2018 Pearson Canada Inc.

 CHAPTER 1: Review of Arithmetic 29

17. Property Tax = Assessed Value  Tax Rate

55
2502.50  Assessed Value 
1000
2502.50(1000)
Assessed Value =  $45 500.00
55
2
18. Assessed value   $130 000  $20 000
13
32.5
Property tax  $20 000   $650
1000
Challenge Problems
1. Purchase price of the first item = $821.40  0.29 = $238.206
Purchase price of the second item, including 5% GST and 7% PST = $821.40 – 238.206 =
$583.194
Purchase price of the second item = $583.194 / 1.12 = $520.708929
Total GST paid = $520.708929(0.05) = $26.035446 = $26.04
BC PST paid on second item = $520.708929(0.07) = $36.449625 = $36.45
BC PST paid on first item = ($238.206 / 1.07)(0.07) = $15.583570 = $15.58
Total BC PST paid = $36.45 + $15.58 = $52.03
2.

Test score Weight Final grade contribution

Test 1 60 30% 60(0.30)  18

Test 2 50 30% 50(0.30)  15

Final exam ? 40% ?
Final mark 70

Final exam contribution to final mark  70  (18  15)  70  33  37

37
Final examination mark required   92.5%
0.40
Case Study
1. HST collected 13% of $28 000 $3640.00
HST paid 13% of $ 4000 520.00
HST remittance $3120.00

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30 ISM for Hummelbrunner/Halliday/Coombs, Contemporary Business Mathematics, Eleventh Canadian Edition

2. (a) HST by Quick Method

HST on sales = 185 000  0.13 = $24 050.00
Purchases:
Goods for resale (185 000 × 47%) × 1.13 = $98 253.50
Other expenses (48 000 – 42 000) × 1.13 = 6 780.00
Total taxable goods and expenses 105 033.50
Input tax credits = 13/113 × 105 033.50 = $12 083.50
Remittance by Quick Method: $24 050.00 – 12 083.50 = $11 966.50
(b) HST by Standard Method
HST collected 13% of $185 000 $24 050.00
HST paid on purchases and taxable services
13% of (47% of $185 000) $11 303.50
13% of ($48 000 – $42 000) 780.00 12 083.50
Remittance by Standard Method $11 966.50
(c) Difference in remittances by method = $11 966.50 – $11 966.50 = $0.00
3. Line 101 $ 486 530.00
Line 103 13% of $486 530 63 248.90
Line 104 0.00
Line 105 63 248.90
Line 106 13% of $239 690 31 159.70
Line 107 0.00
Line 108 31 159.70
Line 109 63 248.90 – 31 159.70 32 089.20
Line 110 3120 × (12) 37 440.00
Line 111 0.00
Line 112 37 440.00
Line 113 32 089.20 – 37 440.00 –5350.80
Line 114 5350.80
Line 115 0
Refund Claimed is $5350.80

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