1

CSEC Mathematics
SECTION 2 – Consumer Arithmetic
Sales Tax – Page 186, Raymond Toolsie’s
Volume 1 Textbook
Tax is a charge that is sanctioned by the
government in order to collect revenues to pay
for certain tasks such as fixing roads, collecting
garbage in our community, provide street lights
and other national needs accordingly.
NOTE:
The tax amount = Cost before tax tax %
The total cost after tax = Cost before tax + tax
amount or
The total cost after tax = Cost before tax
(100% + tax %)
Cost before tax = the total cost after tax divided

by (100% + tax%) =

Exercise
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Answer the following.

1. The cost of a bath soap is $98.75 plus 16.5%
G.C.T.
a. What amount is G.C.T. correct to the nearest
cents (2 dec. pl.)? Answer $16.29
b. Calculate the total cost of the soap correct to
the nearest cents (2 dec. pl.).
Answer $115.04 (to the nearest cents)
2. Calculate the total cost of three calculators at
$1205 each plus 16.5% G.C.T., correct to the
nearest cents.
Answer $4211.48 (to the nearest cents)
3. In a Caribbean country the value added tax
(VAT) payable on items purchased is 15%.
Calculate the amount a customer would pay for
a washing machine which cost $3473 before
VAT. Answer $3993.95
4. The price of a textbook inclusive of 15%
VAT is $1050. Calculate the price of the
textbook before VAT. Answer $913.04
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5. A man purchased a television for $2124 plus

12% sales tax. How much money did he pay?
Answer $2378.88
6. An Airline ticket to New York is priced at
$1232.10 inclusive of 11% sales tax. What is the
cost of the Airline ticket exclusive of the sales
tax? Answer $1110
7. The customs duty on imported vehicles is
35% of the imported price.
a. Calculate the customs duty on a car for
which the imported price is $12500.
Answer $4375
b. Calculate the imported price of a truck for
which the amount paid, inclusive of customs
duty is $61560. Answer $45600
8. A woman bought a stove for $1495 inclusive
of 15% VAT. What is the price exclusive of
VAT? Answer $1300
[Practice – Page 186, Ex. 5i]

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Discount – Page 184 R. Toolsie’s Volume 1

Textbook
Normally, the discount is calculated as a
percentage of the selling price or marked price.
The discount = discount% the selling price,

The discounted price = The selling price – The

discount, or

The discounted price = The selling (100 –

discount%)

Amount before discount = S.P. ÷ (100% - %

discount)
OR
Amount before discount = Amount after
discount ÷ (100% - % discount)

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Exercise
Answer the following.
1. A television set has a selling price of $1950.
A 10% discount is offered for cash payment.
a. Calculate the discount amount.
Answer $195
b. What is the cash price to a customer?
Answer $1755
2. A tailor charges $560 for a suit of clothes
and gives a discount of 12% for cash payment.
Calculate the discounted price for a suit of
clothes, if paid by cash. Answer $492.80
3. A MP3 player was sold for $2071 after a
discount of 5% was given. Calculate the marked
price (selling price) of the player before the
discount. Answer $2180
4. An Artist charges $980 for a portrait but
gives 5% discount for cash. Calculate the cash
price of a portrait. Answer $931
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5. Mr. Khan bought a blender for a discounted

price $2560. What was the marked price (selling
price) of the blender before the discount of 20%
was applied? Answer $3200
[Practice – Page 185, Ex. 5h]

Profit and Loss – Page 180, R. Toolsie’s

Volume 1 Textbook
Profit(P) = Selling Price (S.P.) – Cost Price
(C.P.)
Profit = C.P. % profit

& S.P. = C.P. + Profit

The profit % =

C.P. =

S.P. = C.P. (100% + Profit %) &

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C.P. =

The Loss = C.P. – S.P. &

C.P. = S.P. + Loss

The loss % =

Loss = C.P. % loss

C.P. =

S.P. = C.P. ( 100% - loss %) &

C.P. =

Note: The cost price is always associated with

100%.
Exercise
1. Jane bought a sharpener for $28 and sold it
for $21. Calculate her:
a. profit/loss Answer Loss $7
b. % profit/loss. Answer %Loss = 25%
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2. Albert bought a jump drive for $275 and sold

it for $350. What was his:
a. profit/loss? Answer Profit = $75
b. % profit/loss?
Answer %Profit = % or 27.27%

3. Mr. Roberts bought a gas cooker for $945

and sold it for $803.25. Calculate the:
a. profit/loss Answer Loss $141.75
b. % profit/loss Answer %Loss = 15%
4. A shopkeeper bought 25 sweets for a total
cost of $150. Then he sold them for $8 each.
Calculate the:
a. profit/loss Answer Profit $50

b. % profit/loss Answer %Profit = % or

33.33%
5. A businessman bought a stove for $1209. He
sold it to make a profit of 11%. Determine the:
a. profit made Answer $132.99
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b. selling price. Answer $1341.99

6. A shopkeeper bought a stove for $860. She
sold it and incurred a loss of 15%. Calculate the:
a. loss made Answer $129
b. selling price Answer $731

7. A vendor bought an earphone for $1378. She

sold it in order to make a profit of 17.5%.
Calculate the:
a. profit made Answer $241.15
b. selling price. Answer $1619.15
8. Calculate the cost price of an article, if the
selling price is $96 and the percentage profit is
40%. Answer $68.57
9. A businesswoman sold a refrigerator for
$2149 and incurred a loss of 12% on the cost
price. Determine the cost price of the
refrigerator to the businesswoman.
Answer $2,442.05
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10. A salesman sold a computer for $15600 and

made a profit of 25% . How much did the
salesman pay for the computer?
Answer $12,480

Hire Purchase (Page 187, R. Toolsie Volume

1 Textbook)
Often we are unable to purchase necessary
goods, such as furniture, appliances and
services, by paying cash immediately. Under the
hire purchase terms a customer is allowed to
purchase goods by making a deposit (down
payment or installment). Interest may be applied
to the outstanding balance and the customer is
allowed to pay this sum (amount payable) in a
given number of equal monthly installments.

Hire purchase = down payment/deposit +

amount payable
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Outstanding balance = marked price/cash price

– deposit

Amount Payable = hire purchase – down

payment OR

Amount payable = outstanding balance +

Interest charged

Interest charged = amount payable –

outstanding balance

or

Interest charged = hire purchase price – marked

price

Percentage interest charged

= Interest ÷ Outstanding balance ×100%

Exercise
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Answer the following.

1. The marked price of a television set is

$6,980. If the consumer pays by cash, then the
price is 12% below the marked price. If the set
is bought on hire purchase, then the buyer pays
a downpayment of $628.20 and 24 monthly
installments of $344.06 each. Determine for the
television, the:

a. cash price Answer $6142.40

b. hire purchase price Answer $8885.64

c. difference between the hire purchase price

and the marked price Answer $1905.64

d. percentage interest charged on the

outstanding balance. Answer 29.99% or

30%

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2. The cash price of a laptop is $1,299. It can be

bought on hire purchase by making a deposit of

$350 and 10 monthly payments of $120 each.

a. What is the TOTAL hire purchase price of

the laptop? Answer $1,550

b. How much is saved by buying the laptop for

cash? Answer $251 MAY 2014

3. A housewife purchased a video recorder with

a cash price of $2,980 under hire purchase
terms. She paid an initial down payment of 20%
of the cash price and interest which is equivalent
to 15% of the outstanding balance is charged.
The balance is paid in 18 equal monthly

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instalments. Calculate for the video recorder

the:

a. hire purchase price Answer $3337.60

b. amount of each monthly instalment

Answer $152.31

c. difference between the hire purchase price

and the cash price. Answer $357.60

d. interest charged. Answer $357.60

4. The cash price of a bicycle is $319.95. It can

be bought on hire purchase by making a deposit

of $69.00 and 10 monthly installments of

$28.50 each.

a. What is the total hire purchase price of the

bicycle? Answer $354

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b. Calculate the difference between the hire

purchase price and the cash price.
Answer $34.05

c. Express your answer in part b as a percentage

of the cash price. Answer 10.64%

JANUARY 2008

5. A freezer can be purchased by cash for

$3475 or on higher purchase for a deposit of
25% and 24 equal monthly installments of
$130.31. Determine for the freezer the:

a. deposit Answer $868.75

b. amount payable Answer $3127.44

c. outstanding balance Answer $2606.25

d. hire purchase price Answer $3996.19

e. interest Answer $521.19

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f. percentage interest charged Answer 20%

6. The retail price of a television set is $4,500.

If the buyer pays by cash, the price is 10%
below the retail price. If the set is bought on
higher purchase, the buyer pays a down
payment of $675 and 24 monthly installments of
$212.50. Calculate for the television the:

a. cash price to the buyer, if he pays by cash

Answer $4050

b. amount payable Answer $5100

c. outstanding balance Answer $3825

d. hire purchase price Answer $5775

e. interest Answer $1275

f. difference between the hire purchase and the
cash price Answer $1725
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g. percentage interest charged Answer 33.3%

h. difference between the hire purchase and the
cash price as a percentage of the retail price.
Answer 38.3%

7. A computer can be bought on hire purchase

by making a deposit of $1360 and 40 monthly

installments of $442 each. Calculate the hire

purchase price of the computer.Answer $19040

8. The marked price of a radio is $3,000. There

is a discount of 15% for cash payment. To
obtain the radio on hire purchase, a deposit
of $595 and 18 monthly installments of
$159.50 each are required. Determine for the
radio, the:
a. cash price Answer $2550

b. hire purchase price Answer $3466

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c. difference between the cash price and the

hire purchase price as a percentage of the

marked price. Answer 30.53%

[Practice Questions – Page 189, Ex. 5j]

Simple Interest (Page 210, R. Toolsie’s

Volume 1 Textbook)
When we borrow money or invest money, the
amount borrowed or invested is called the
principal. The amount charged on the loan or
paid on the investment is called the interest.

Simple interest (I) = principal (P) rate percent

per annum (R) time in years (T)

Principal =

Rate percent per annum =

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Time in years =

Amount accruing (A) = principal (P) + interest

(I)

Exercise

Answer the following questions.

1. Tad borrowed $10,000 from a bank at a

simple interest rate of 8% per annum for 3
years.

a. Calculate the simple interest payable.

Answer $2,400

b. Compute the amount accruing for the loan.

Answer $12,400

c. Determine the amount of each monthly

installments. Answer $344.44

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2. The simple interest on a sum of money

invested for 6 months at 5% per annum is
$1680. Determine the amount of money
invested. Answer $67,200

3. The simple interest on $8,500 invested for

years is $3867.50. Calculate the rate percent

per annum. Answer 7%

4. The simple interest on $5,400 invested at

8.75% per annum is $1890. Determine the
period of investment. Answer 4 years

5. Kate invested $9600 at 8% per annum simple

interest for 5 years.

a. What is the amount of simple interest

payable? Answer $3,840

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b. Calculate the amount accruing for the

investment. Answer $13,440

6. a) Calculate the simple interest collected by a

bank if $7650 is loaned for 4 years at 6.5% per

annum. Answer $1,989

b) Hence, determine the total amount collected

by the bank at the end of the 4-year period.
Answer $9,639

c) What was the amount of money paid

monthly? Answer $200.81

7. Dan borrowed $5760 from a bank at 8.25%

per annum simple interest for 9 months.
Evaluate the:

a. simple interest Dan paid the bank for the

money borrowed. Answer $356.40

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b. total amount of money that was repaid to the

bank. Answer $6,116.40

c. amount of each monthly installments.

Answer $679.60

8. Determine the principal that will earn $294

in 5 years at 6% per annum simple interest.
Answer $980

9. The simple interest on $12,000 for years

is $3750. Calculate the rate percent per annum.

Answer 12.5%

10. Jill borrowed $18,900 at 13.5% per annum

and repaid $12,757.50 simple interest. Calculate

the:

a. period of the loan Answer 5 years

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b. amount accruing on the loan

Answer $31,657.50

11. A loan of $12,000 was borrowed from a

bank at 14% per annum. Calculate the:

a. interest on the loan at the end of the first

year. Answer $1680

b. the total amount owing at the end of the first

year. Answer $13,680

c. A repayment of $7,800 was made at the start

of the second year. Calculate the :

i. amount still outstanding at the start of the

second year. Answer $5,880

ii. interest on the outstanding amount at the

end of the second year. Answer $823.20
JANUARY 2006

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[Practice Questions – Page 213, Ex. 5s]

Compound Interest (Page 216, R. Toolsie’s

Volume 1 Textbook)

Compound interest is the interest applied on the

amount accruing at the end of each year.

The formula can be used repeatedly to

calculate the interest payable at the end of each
year. The compound interest can also be
calculated using the formula
where A = the amount of money accruing after
n years

P = the principal

R = the rate percent per annum

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n = the number of years for which the money

was invested or borrowed.

The compound interest (C.I.) = Amount (A) –

Principal (P)

Amount(A) = principal at the beginning of the

first year (P1) + C.I.

Or

Amount = principal at the beginning of the 1st

year (P1) + interest for the nth year (In) where n is
the final year for the period.

Exercise

Answer the following.

1. Jan invested $10,000 at 8% interest per

annum for 3 years.

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a. Calculate the compound interest earned.

Answer $2,597.12

b. The amount accruing Answer $12,597.12

2. Tia borrowed $25,600 at 12% per annum

compound interest. Calculate her compound
interest for 3 years. Answer $10,366.16

3. Calculate the compound interest earned when

$14,000 is invested for 3 years at 7% per

annum. Answer $3,150.60

4. Mary decided to invest $1200 for two years

at 5% interest per annum. Determine whether
she should invest her money on a simple interest
or compound interest agreement. Give reason.

Answer: S.I. = $120 and C.I. = $123

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Compound Interest is better because $3 more

is gained.

5. A lecturer borrowed $60,000 at 8%

compound interest for two years.

a. Calculate the compound interest the lecturer

would pay. Answer $9,984

b. Determine the amount he would owe over

the two years. Answer $69,984

6. Faye borrowed $9,600 at 8% per annum

compound interest.

a. Calculate the interest on the loan for the first

year. Answer $768

b. At the end of the first year she repaid $4,368.

How much did she still owe at the beginning of

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the second year? Answer $6,000

c. Calculate the interest on the remaining

balance for the second year. Answer $480
MAY 2013

7. A credit union pays 8% per annum

compound interest on all fixed deposits. A
customer deposited $24,000 in an account.
Calculate the total amount of money in the
account at the end of two years. [4 marks]
Answer $27,993.60 JANUARY 2009

[Practice Questions – Page 219, Ex. 5t]

Rates – Utility Bills and Commission

(Page 194, R. Toolsie’s Volume 1 Textbook)

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Exercise

Answer the following.

1. Kerry used 75 m3 of water for the month of

October 2015. Water rates are as follows:

$0.75 per cubic metre for the first 60 m3

$0.90 per cubic metre for volume in excess of

60 m3.

G.C.T. is 16.5%

A 10% discount is applied on bills paid before

the 4th of the next month.

Calculate the amount that Kerry is expected to

pay for her water bill, if she paid by November
3, 2015. Answer $61.33

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2. A school used 1250 m3 of water in August

2015. The water rates for government buildings
are: $0.75 per cubic metre for the first 400 m3

$0.85 per cubic metre for the next 600 m3

$0.95 per cubic metre for volume in excess of

1000 m3.

Evaluate the amount the government will pay

for water charges for August 2015.

Answer $1047.50

3. The charges in a CARICOM country for

electricity consist of :

45 cents per kWh for fuel charge

24 cents per kWh for the first 1000 kWh used

23 cents per kWh for the remaining kWh used

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Joan Whit’s Electricity Meter Reading

Meter Reading (kWh)

Current Reading 6403 Previous Reading 4175

Calculate the:

a. number of kilo-watt hour used

Answer 2228 kWh

b. fuel charge Answer $1,002.60

c. electricity bill for Joan. Answer $1,525.04

4. Calculate the telephone bill amount for Mr.

Parkes, given that:

Total call Customer Cost per Telephone

minutes service minute Tax
used charge
740 $350 65 cents 25 %
Answer $1,038.75
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5. In a certain company, a salesman is paid a

fixed salary of $3,140 per month plus an annual

commission of 2% on the total value of cars

sold for the year. If the salesman sold cars
valued at $720,000 in 2009, calculate:

a. the amount he received in commission for the

year [1 mark] Answer $14,400

b. his fixed s alary for the year. [1 mark]

Answer $37,680

c. his total income for the year. [1 mark]

Answer $52,080 JANUARY 2010

6. The ingredients for making 8 pancakes are 2

cups pancake mix and cups milk.
a. Ryan wishes to make 12 pancakes using the
instructions given above. Calculate the number
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of cups of pancake mix he must use. [2 marks]

Answer 3 cups of pancake mix
b. Neisha used 5 cups of milk to make pancakes
using the same instructions. How many
pancakes did she make? [3 marks]
Answer 30 pancakes JANUARY 2010
[Practice Questions – Page 196, Ex. 5n; Pg.
200, Ex. 5p; Pg. 205, Ex. 5q ]

Depreciation

(Page 221, R. Toolsie’s Volume 1 Textbook)

Most people own assets such as a motor car,

DVD player, cellular phone and a computer.
These decrease in value, that is depreciate, due
to wear and deterioration as it is used.

The depreciation formula is:

Depreciation (D) = Initial cost/Principal (P) – Amount(A)
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Amount (A) = P(1 – Rate)n where

A = the value after n years

P = the initial cost of the item/Principal

R = the rate of depreciation

n = the number of years for which the asset was

depreciated.

Depreciated percent =

Initial value = depreciation value (1 – Rate)n

Exercise

Answer the following

1. A Mazda 323 car was bought in January

1986 for $270,000. An insurance company

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decided to calculate its depreciation per annum

at 5%. Determine:

a. its value after 3 years Answer $231,491.25

b. the depreciated amount for the same period

Answer $38,508.75

2. A computer costing $20,000, depreciates at

4% per annum. Calculate after 3 years the:

a. value of the computer. Answer $17,694.72

b. depreciation amount. Answer $2,305.28

3. A motor bike costing $58,000 depreciates at

8% per annum. Calculate after 3 years the:

a. value of the motor bike. Answer $45,163.90

b. depreciation amount for the motor bike.

Answer $12,836.10

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4. The table below gives information on the

values and the rates of depreciation in value of
two motor vehicles

Motor Initial Yearly Rate Value

Vehicle Value of after One
Depreciation Year
Taxi $40,000 12 % $p
Private $25,000 q % $21250
Car
Calculate the:

a. values of p and q Answer $p = $35,200

q = 15%

b. value of the Taxi after 2 years.MAY 2006

Answer $30,976

[Practice Questions – Page 223, Ex. 5u]

Appreciation

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Just as interest is compounded on investments

and loans, the same can be said for some
valuables and property. The principle used in
calculating compound interest is the same as
that used in calculating appreciation.

Exercise

Answer the following.

1. An item of jewelry originally valued at

$1,000 appreciates by 25% each year. What is
its expected value after two years?
Answer $1562.50

2. A property cost $350,000 initially

appreciates by 10% each year. What is its
expected value after three years?
Answer $465,850

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Currency Conversion
(Page 206, R. Toolsie’s Volume 1 Textbook)

Exercise

Use the following rates of exchange to answer

the questions that follows.
US$5.00 = JA$500 CAN$3.00 = TT$60
US$2 = BDS$10
1. Calculate the amount of JA dollars an
American tourist would receive for US$340.50.
Answer JA$34,050
2. How much TT dollars would a Canadian
obtain if she decided to exchange CAN$820 to
TT dollars? Answer TT$16,400
3. A Jamaican decided to purchase some US
dollars with JA$56,250 from Western Union.
How much US dollars will be received for this
amount? Answer US$562.50
4. A Trinidadian wanted to give his Canadian
friend some CAN dollars. He decided to change
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TT$6380 to CAN dollars. How much CAN

dollars will he received for this amount?
Answer CAN$319
5. A traveler changed BDS$9065 to US dollars.
Calculate the amount received in US dollars.
Answer US$1,813
6. Calculate the amount of Jamaican dollars one
would receive for BDS$5,420.
Answer JA$108,400
7. Calculate the amount of BDS dollars one can
receive for JA$8,000. Answer BDS$400
[Practice – Page 206, Ex. 5r # 1 – 7]
Basic Wages – Page 171, R. Toolsie’s
Textbook
Normally, people are paid a given amount each
hour for work done during that period. The
amount of money normally paid for each hour is
called the basic rate.

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Some workers normally work a 5-day week 8

hours per day. This normal 40-hour week is
called basic week.
The amount of money earned during a basic
week is called basic wage.
Note: A fortnight is 2 weeks.
Basic wage ($) = basic rate ($) basic week or
fortnight (hours)

Basic week or fortnight (hours) =

Basic rate ($) =

Overtime wage ($) = basic rate ($) overtime

hours overtime rate.
Total wage ($) = basic wage ($) + overtime
wage ($).
Overtime wage ($) = Total wage ($) – Basic
wage ($)

Overtime hours =
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Note: Time and a half means “times 1.5” and

double time means “times 2”.
Exercise
Answer the following.
1. A typist is paid a basic rate of $22.50 per
hour for a 40-hour week.
a. Calculate the typist's basic weekly wage.
Answer $900
Overtime is paid at one and a half times the
basic hourly rate.
b. Calculate the overtime wage for ONE hour
of overtime work. Answer $33.75

To earn some extra money, the typist decided to

work overtime.
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Calculate the:
c. wage she would earn for overtime if she
worked for a TOTAL of 52 hours during a given
week. Answer $405
d. total wage she would earn for 52 hours
during a given week. Answer $1,305
e. number of overtime hours she must work
during a given week to earn a TOTAL wage of
$1440. Answer 16 hours JANUARY 2012

2. A company pays its employees a basic wage

of $9.50 per hour for a 40-hour week.

a. Calculate the basic weekly wage for ONE

employee. (l mark) Answer $380

Overtime is paid at a rate of time and a half.

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b. Calculate the overtime wage for an employee

who works 6 hours overtime in a certain week.
(2 marks) Answer $85.50

In a certain week, the company paid its 30

employees a total of $12 084.00 in basic and

overtime wages. Calculate for that week:

c.The TOTAL paid in overtime wages ( 2marks)

Answer $684

d. The TOTAL number of overtime hours

worked by the employees. ( 1 mark )
Answer 48 hours JANUARY 2011

3. The basic wage earned by a truck driver for a

40-hour week is $560.00.
(i) Calculate his hourly rate. ( 1 mark )
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Answer $14 per hour

For overtime work, the driver is paid one and a
half times the basic hourly rate.
(ii) Calculate his overtime wage for 10 hours of

overtime. ( 2 marks) Answer $210

(iii) Calculate the TOTAL wages earned by the

truck driver for a 55-hour week. Answer $875
MAY 2009
4. Robin starts work each day at 7:30 a.m. and
finishes at 4:30 p.m. He has a 45-minute lunch

break.

a. How many hours does he work?

Answer 8.25 hours

b. Calculate his basic wage if his rate of pay is

$7.25 per hour. Answer $59.81

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5. Mr. Riley worked at a factory for a basic

week of 40 hours. During a particular week his
basic wage was $513.88 which included
overtime of $159.48.
a. Calculate Mr. Riley’s basic rate of payment.
Answer $8.86 per hour
b. If overtime was paid at time and a half,
determine how many hours Mr. Riley worked
for overtime. Answer 12 hours
6. At a farm, the basic week is 40 hours. During
a particular week Ms. Annie earned a wage of
$491.15 which included $156.75 overtime.
a. Calculate Ms. Annie’s basic rate.
Answer $8.36 per hour
b. If overtime was paid at time and a quarter,
how many hours did Ms. Annie worked for
overtime? Answer 15 hours
7. Jane is paid $9.60 per hour for a 40-hour
week and she is paid at time and a half for
overtime. Determine how many hours of

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overtime she worked when her wage for a

certain week was $528.00. Answer 10 hours
[Practice Questions – Page 171, Ex. 5b; Page
173, Ex. 5c]
Salary (Gross and Net Salary)
NOTE:
Taxable Income = Annual Gross Salary –
Total Tax free allowances

Net income = Gross salary – Income Tax

paid
Exercise
Mr. Parkes with five children receives non
taxable allowances from his gross salary according to the table below
Personal allowance $1,400 per month
Laundry allowance $2,300 per month
Housing allowance $3,150 per month
Family allowance $900 per month per child up to 3
children

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 47

a. Calculate his total non-taxable income for

the year. Ans: $114,600

b. If his gross annual salary is $800,000 and

income tax is charged at on the

taxable income, calculate:

i) the total amount he pays in tax for the
year. Ans: $87,388.50
ii) his net income. Ans: $712,611.50
iii) What would be his monthly income?
Ans: $59,384.29

Prepared by H. Walker October 11, 2015