Managing Money BLM
(Draft)
NSSAL
Author:
C. David Pilmer
©2008
NSSAL
©2008
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C. D. Pilmer
Introduction:
This Nova Scotia School for Adult Learning resource is designed for Level II Mathematics. It is
comprised of black line masters that instructors may wish to use with their learners when they
are learning about money management. These are individual activity sheets. Collectively the
sheets do not provide a comprehensive study of money management. Instructors should use
other resources in conjunction with these black line masters.
Table of Contents
How Much Money Do I Have? (Only Bills) ………………………………………………….. 1
How Much Money Do I Have? (Only Coins) ………………………………………………… 2
How Much Money Do I Have? (Coins and Bills) ………………………………………….… 3
How Much Do They Have (No Pictures) …………………………………………………...… 4
Answers ………………………………………………………………………………. 5
Paying with Cash (Part I) ……………………………………………………………………... 6
Answers …………………………………………………………………….……….… 12
Paying with Cash (Part II) ……………………………………………………………….……. 15
Answers …………………………………………………………………………..…… 22
Total Cost Including Tax ……………………………………………………………………… 25
Answers ……………………………………………………………………………….. 28
Discounts ……………………………………………………………………………………… 29
Answers ……………………………………………………………………………….. 31
Discounts and Tax …………………………………………………………………………….. 32
Answers ……………………………………………………………………………….. 37
Estimating the Total …………………………………………………………………………… 38
Answers ……………………………………………………………………………….. 43
Tips ……………………………………………………………………………………………. 45
Answers ……………………………………………………………………………….. 47
Unit Price ……………………………………………………………………………………… 48
Answers ……………………………………………………………………………….. 53
Budgets ………………………………………………………………………………………... 54
Answers ……………………………………………………………………………….. 62
Designing a Budget …………………………………………………………………………… 64
Layaway Purchases …………………………………………………………………………… 65
Answers ……………………………………………………………………………….. 67
Rent-To-Own ………………………………………………………………………………….. 68
Answers ……………………………………………………………………………….. 71
Installment Plans ………………………………………………………………………………. 72
Answers ……………………………………………………………………………….. 77
No Payments for One Year ……………………………………………………………………. 78
Answers ……………………………………………………………………………… 82
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Putting It Together ……………………………………………………………………………. 83
Answers ……………………………………………………………………………….. 86
Understanding Your Passbook ………………………………………………………………... 87
Answers ……………………………………………………………………………….. 91
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How Much Do They Have? (Only Bills)
Determine the amount of money each person has.
Andrea’s Cash:
Marcy’s Cash:
Blake’s Cash:
Montez’s Cash:
Sharon’s Cash:
Your Answers:
Andrea’s Cash: _______
Marcy’s Cash: _______
Montez’s Cash: _______
Sharon’s Cash: _______
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Blake’s Cash: _______
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C. D. Pilmer
How Much Do They Have? (Only Coins)
Determine the amount of money each person has.
Anne’s Money:
Jake’s Money:
Meera’s Money:
Ryan’s Money:
Yoshi’s Money:
Your Answers:
Anne’s Money: _______
Jake’s Money:
Ryan’s Money: _______
Yoshi’s Money: _______
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_______
Meera’s Money: _______
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C. D. Pilmer
How Much Do They Have? (Coins and Bills)
Determine the amount of money each person has. We apologize that the bills are not the
appropriate size compared to the coins.
Liz’s Money:
Keith’s Money:
Jane’s Money:
Jorell’s Money:
Akira’s Money:
Your Answers:
Liz’s Money:
_______
Keith’s Money: _______
Jorell’s Money: _______
Akira’s Money: _______
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Jane’s Money:
_______
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C. D. Pilmer
How Much Do They Have? (No Pictures)
Based on the number of bills and coins, determine how much money there is in each case.
Three sample questions (*) have been completed.
$2
Coin
-
$1
Coin
1
Quarter
Dime
Nickel
Penny
Total
*
$5
Bill
-
1
2
-
-
$1.45
*
2
2
-
2
-
1
3
$14.58
*
1
1
1
3
1
-
2
$8.87
(a)
-
-
-
2
1
-
-
(b)
-
-
-
1
2
2
-
(c)
-
-
-
2
-
1
3
(d)
-
3
-
-
2
-
4
(e)
-
-
3
1
1
-
1
(f)
-
1
1
-
4
1
-
(g)
-
-
4
-
1
2
3
(h)
-
1
2
2
-
-
4
(i)
-
2
1
2
1
-
3
(j)
1
-
1
-
3
-
4
(k)
1
1
-
2
-
-
2
(l)
1
1
1
-
-
2
3
(m)
2
-
-
3
-
1
-
(n)
1
2
-
1
-
1
2
(o)
2
-
3
-
4
-
3
(p)
2
2
-
-
1
2
1
(q)
2
-
1
2
-
1
1
(r)
3
1
-
-
2
1
4
(s)
3
2
1
-
3
1
2
(t)
1
3
2
3
-
-
4
(u)
4
2
1
-
5
1
2
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Answers:
Only Bills
Andrea: $80
Marcy: $35
Blake: $55
Montez: $125
Sharon: $130
Only Coins
Anne: 34¢
Jake: 76¢
Meera: $1.57
Ryan: $3.86
Yoshi: $5.50
Coins and Bills
Liz: $10.25
Keith: $11.46
Jane: $24.11
Jorell: $6.50
Akira: $12.65
No Pictures
(a) 60¢
(b) 55¢
(c) 58¢
(d) $6.24
(e) $3.36
(f) $3.45
(g) $4.23
(h) $4.54
(i) $5.63
(j) $6.34
(k) $7.52
(l) $8.13
(m) $10.80
(n) $9.32
(o) $13.43
(p) $14.21
(q) $11.56
(r) $17.29
(s) $20.37
(t) $13.79
(u) $25.57
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Paying with Cash (Part I)
When you pay with cash, you have to be good at two skills.
• If you don’t pay with the exact amount, then you need to be able to figure out how much
change must be paid to you. For example if you used a $10 bill to pay for an item costing
$8.79, then you should be able to figure out that $1.21 in change is owed to you.
• If you are going to pay the exact amount, then you need to know how to pay using the
fewest number of bills and coins. For example if an item costs $7.39, then you would
pay with one $5 bill, one $2 coin, one quarter, one dime and four pennies.
In this activity sheet we will only look at figuring out the correct change that is owed to you.
Example 1:
You purchase an item for $6.73 and pay with a $10 bill. How much change should you get?
Answer:
Start at $6.73 and add numbers until you reach $10.
• Add $3 to take $6.73 up to $9.73.
• Add 20¢ to take $9.73 up to $9.93.
• Add 7¢ to take $9.93 up to $10.00.
$3.00
$0.20
$0.07
$3.27
You should get $3.27 in change.
Example 2:
You purchase an item for $18.46 and pay with a $20 bill. How much change should you get?
Answer:
Start at $18.46 and add numbers until you reach $20.
• Add $1 to take $18.46 up to $19.46.
• Add 50¢ to take $19.46 up to $19.96.
• Add 4¢ to take $19.96 up to $20.00.
$1.00
$0.50
$0.04
$1.54
You should get $1.54 in change.
Example 3:
You purchase an item for $12.34 and pay with a $10 bill and $5 bill. How much change should
you get?
Answer:
Start at $12.34 and add numbers until you reach $15.
• Add $2 to take $12.34 up to $14.34.
• Add 60¢ to take $14.34 up to $14.94.
• Add 6¢ to take $14.94 up to $15.00.
$2.00
$0.60
$0.06
$2.66
You should get $2.66 in change.
NSSAL
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C. D. Pilmer
Questions:
1. Fill in the blanks in these partially completed questions.
(a) You purchase an item for $8.62 and pay with a $10 bill. How much change should you
get?
Answer:
Start at $8.62 and add numbers until you reach $10.
• Add $1 to take $8.62 up to ________.
• Add 30¢ to take $9.62 up to ________.
• Add 8¢ to take $9.92 up to ________.
$1.00
$0.30
$0.08
$
You should get ________ in change.
(b) You purchase an item for $7.39 and pay with a $10 bill. How much change should you
get?
Answer:
Start at $7.39 and add numbers until you reach $10.
• Add $2 to take $7.39 up to ________.
• Add 60¢ to take $9.39 up to ________.
• Add 1¢ to take $9.99 up to ________.
$2.00
$0.60
$0.01
$
You should get ________ in change.
(c) You purchase an item for $16.57 and pay with a $20 bill. How much change should you
get?
Answer:
Start at $16.57 and add numbers until you reach $20.
• Add $3 to take $16.57 up to _______.
• Add 40¢ to take $19.57 up to _______.
• Add 3¢ to take $19.97 up to _______.
$3.00
$0.40
$0.03
$
You should get ________ in change.
(d) You purchase an item for $17.84 and pay with a $20 bill. How much change should you
get?
Answer:
Start at $17.84 and add numbers until you reach _________.
• Add $2 to take $17.84 up to _______.
• Add 10¢ to take ________ up to ________.
• Add 6¢ to take ________ up to ________.
$2.00
$0.10
$0.06
$
You should get ________ in change.
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(e) You purchase an item for $12.15 and pay with a $10 and $5 bill. How much change
should you get?
Answer:
Start at $12.15 and add numbers until you reach ________.
• Add $2 to take $12.15 up to ________.
• Add 80¢ to take ________ up to ________.
• Add 5¢ to take ________ up to ________.
$2.00
$0.80
$0.05
$
You should get ________ in change.
(f) You purchase an item for $7.63 and pay with a $10 bill. How much change should you
get?
Answer:
Start at $7.63 and add numbers until you reach ________.
• Add _____ to take $7.63 up to $9.63.
• Add _____ to take $9.63 up to $9.93.
• Add _____ to take $9.93 up to $10.00.
$
$
$
$ 2.37
You should get $2.37 in change.
(g) You purchase an item for $3.81 and pay with a $5 bill. How much change should you
get?
Answer:
Start at $3.81 and add numbers until you reach ________.
• Add _____ to take $3.81 up to $4.81.
• Add _____ to take $4.81 up to $4.91.
• Add _____ to take $4.91 up to $5.00.
$
$
$
$ 1.19
You should get $1.19 in change.
(h) You purchase an item for $13.28 and pay with a $20 bill. How much change should you
get?
Answer:
Start at $13.28 and add numbers until you reach ________.
• Add _____ to take $13.28 up to $19.28.
• Add _____ to take $19.28 up to $19.98.
• Add _____ to take $19.98 up to $20.00.
$
$
$
$
You should get ________ in change.
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C. D. Pilmer
(i) You purchase an item for $12.34 and pay with a $10 and $5 bill. How much change
should you get?
Answer:
Start at $12.34 and add numbers until you reach ________.
• Add _____ to take $12.34 up to $14.34.
• Add _____ to take $14.34 up to $14.94.
• Add _____ to take $14.94 up to $15.00.
$
$
$
$
You should get ________ in change.
(j) You purchase an item for $2.76 and pay with a $5 bill. How much change should you
get?
Answer:
Start at $2.76 and add numbers until you reach ________.
• Add _____ to take $2.76 up to ________.
• Add _____ to take ________ up to ________.
• Add _____ to take ________ up to ________.
$
$
$
$ 2.24
You should get $2.24 in change.
(k) You purchase an item for $4.52 and pay with a $10 bill. How much change should you
get?
Answer:
Start at $4.52 and add numbers until you reach ________.
• Add _____ to take $4.52 up to ________.
• Add _____ to take ________ up to ________.
• Add _____ to take ________ up to ________.
$
$
$
$ 5.48
You should get $5.48 in change.
(l) You purchase an item for $15.37 and pay with a $20 bill. How much change should you
get?
Answer:
Start at $15.37 and add numbers until you reach ________.
• Add _____ to take $15.37 up to ________.
• Add _____ to take ________ up to ________.
• Add _____ to take ________ up to ________.
$
$
$
$ 4.63
You should get $4.63 in change.
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(m) You purchase an item for $11.26 and pay with a $10 and $5 bill. How much change
should you get?
Answer:
Start at $11.26 and add numbers until you reach $15.
• Add _____ to take $11.26 up to ________.
• Add _____ to take ________ up to ________.
• Add _____ to take ________ up to $15.00.
$
$
$
$
You should get ________ in change.
(n) You purchase an item for $17.72 and pay with a $20 bill. How much change should you
get?
Answer:
Start at $17.72 and add numbers until you reach $20.
• Add _____ to take $17.72 up to ________.
• Add _____ to take ________ up to ________.
• Add _____ to take ________ up to $20.00.
$
$
$
$
You should get ________ in change.
2. Jack figures out the change he is owed using a similar technique as shown in question 1
however, he organizes the information in a different manner on his paper. He was asked how
much change he would get when he purchases an item for $3.87 and pays with a $5 bill. He
showed the following work and correctly stated that he was owed $1.13 in change.
$3.87
Add
$1
$4.87
Add
10¢
$4.97
Add
3¢
$5.00
Change Due: $1.13
Use Jack’s technique to answer the following questions.
(a) You purchase an item for $2.58 and pay with a $5 bill. How much change should you
get?
$2.58
Add
Add
Add
$5.00
Change Due:
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(b) You purchase an item for $6.73 and pay with a $10 bill. How much change should you
get?
$6.73
Add
Add
Add
$10.00
Change Due:
(c) You purchase an item for $15.14 and pay with a $20 bill. How much change should you
get?
$15.14
Add
Add
Add
$20.00
Change Due:
(d) You purchase an item for $13.29 and pay with a $10 and $5 bill. How much change
should you get?
$13.29
Add
Add
Add
$15.00
Change Due:
3. Answer the following questions using whatever method you want.
(a) You purchase an item for $17.69 and pay with a $20 bill. How much change should you
get?
(b) Angela uses a $10 bill to purchase a magazine costing $5.64. How much change should
Angela get?
(c) Denise bought a wrench that cost $13.55 using a $20 bill. How much should he get back
in change?
(d) How much change should Nashi receive if she bought an item costing $11.29 using a $10
and $5 bill?
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Answers:
1. (a) Start at $8.62 and add numbers until you reach $10.
• Add $1 to take $8.62 up to $9.62.
• Add 30¢ to take $9.62 up to $9.92.
• Add 8¢ to take $9.92 up to $10.00.
$1.00
$0.30
$0.08
$ 1.38
You should get $1.38 in change.
(b) Start at $7.39 and add numbers until you reach $10.
• Add $2 to take $7.39 up to $9.39.
• Add 60¢ to take $9.39 up to $9.99.
• Add 1¢ to take $9.99 up to $10.00.
$2.00
$0.60
$0.01
$2.61
You should get $2.61 in change.
(c) Start at $16.57 and add numbers until you reach $20.
• Add $3 to take $16.57 up to $19.57.
• Add 40¢ to take $19.57 up to $19.97.
• Add 3¢ to take $19.97 up to $20.00.
$3.00
$0.40
$0.03
$3.43
You should get $3.43 in change.
(d) Start at $17.84 and add numbers until you reach $20.
• Add $2 to take $17.84 up to $19.84.
• Add 10¢ to take $19.84 up to $19.94.
• Add 6¢ to take $19.94 up to $20.00.
$2.00
$0.10
$0.06
$2.16
You should get $2.16 in change.
(e) Start at $12.15 and add numbers until you reach $15.
• Add $2 to take $12.15 up to $14.15.
• Add 80¢ to take $14.15 up to $14.95.
• Add 5¢ to take $14.95 up to $15.00.
$2.00
$0.80
$0.05
$2.85
You should get $2.85 in change.
(f) Start at $7.63 and add numbers until you reach $10.
• Add $2 to take $7.63 up to $9.63.
• Add 30¢ to take $9.63 up to $9.93.
• Add 7¢ to take $9.93 up to $10.00.
$2.00
$0.30
$0.07
$2.37
You should get $2.37 in change.
NSSAL
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(g) Start at $3.81 and add numbers until you reach $5.
• Add $1 to take $3.81 up to $4.81.
• Add 10¢ to take $4.81 up to $4.91.
• Add 9¢ to take $4.91 up to $5.00.
$1.00
$0.10
$0.09
$1.19
You should get $1.19 in change.
(h) Start at $13.28 and add numbers until you reach $20.
• Add $6 to take $13.28 up to $19.28.
• Add 70¢ to take $19.28 up to $19.98.
• Add 2¢ to take $19.98 up to $20.00.
$6.00
$0.70
$0.02
$6.72
You should get $6.72 in change.
(i) Start at $12.34 and add numbers until you reach $15.
• Add $2 to take $12.34 up to $14.34.
• Add 60¢ to take $14.34 up to $14.94.
• Add 6¢ to take $14.94 up to $15.00.
$2.00
$0.60
$0.06
$2.66
You should get $2.66 in change.
(j) Start at $2.76 and add numbers until you reach $5.
• Add $2 to take $2.76 up to $4.76.
• Add 20¢ to take $4.76 up to $4.96.
• Add 4¢ to take $4.96 up to $5.00.
$2.00
$0.20
$0.04
$2.24
You should get $2.24 in change.
(k) Start at $4.52 and add numbers until you reach $10.
• Add $5 to take $4.52 up to $9.52.
• Add 40¢ to take $9.52 up to $9.92.
• Add 8¢ to take $9.92 up to $10.00.
$5.00
$0.40
$0.08
$5.48
You should get $5.48 in change.
(l) Start at $15.37 and add numbers until you reach $20.
• Add $4 to take $15.37 up to $19.37.
• Add 60¢ to take $19.37 up to $19.97.
• Add 3¢ to take $19.97 up to $20.00.
$4.00
$0.60
$0.03
$4.63
You should get $4.63 in change.
NSSAL
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(m) Start at $11.26 and add numbers until you reach $15.
• Add $3 to take $11.26 up to $14.26.
• Add 70¢ to take $14.26 up to $14.96.
• Add 4¢ to take $14.96 up to $15.00.
$3.00
$0.70
$0.04
$3.74
You should get $3.74 in change.
(n) Start at $17.72 and add numbers until you reach $20.
• Add $2 to take $17.72 up to $19.72.
• Add 20¢ to take $19.72 up to $19.92.
• Add 8¢ to take $19.92 up to $20.00.
$2.00
$0.20
$0.08
$2.28
You should get $2.28 in change.
2. (a)
$2.58
Add
$2
Add
40¢
$4.58
$4.98
Add
2¢
$5.00
Add
7¢
$10.00
Add
6¢
$20.00
Add
1¢
$15.00
Change Due: $2.42
(b)
$6.73
Add
$3
Add
20¢
$9.73
$9.93
Change Due: $3.27
(c)
$15.14
Add
$4
Add
80¢
$19.14
$19.94
Change Due: $4.86
(d)
$13.29
Add
$1
Add
70¢
$14.29
$14.99
Change Due: $1.71
3. (a) $2.31
(c) $6.45
NSSAL
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(b) $4.36
(d) $3.71
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Paying with Cash (Part II)
When you pay with cash, it is important to know how to pay using the fewest number of bills and
coins. For example if an item costs $7.39, then you would pay with one $5 bill, one $2 coin, one
quarter, one dime and four pennies.
Example 1:
A customer purchases an item for $8.23 and pays with a $10 bill. The cash register says that the
customer receives $1.77 in change. Supply the customer with the change using the fewest
number of coins as possible.
Answer:
Always start with the bills and coins of the largest values.
- no bills are needed
- no $2 coins are needed
- you need one $1 coin
- you need three 25¢ coins (quarters)
- no 10¢ coins (dimes) are needed
- no 5¢ coins (nickels) are needed
- you need two 1¢ coins (pennies)
$1.00
$0.75
$0.02
$1.77
one $1 coin, three 25¢ coins, and two 1¢ coins
Example 2:
You are buying some school supplies for your child. The bill comes to $47.13. You want to pay
using the fewest number of bills and coins. If you are going to pay with the exact change, what
bills and coins should you use?
Answer:
-
you need two $20 bills
no $10 bills are needed
you need one $5 bill
you need one $2 coin
no $1 coins are needed
no 25¢ coins (quarters) are needed
you need one 10¢ coin (dime)
no 5¢ coins (nickels) are needed
you need three 1¢ coins (pennies)
$40.00
$5.00
$2.00
$0.10
$0.03
$47.13
two $20 bills, one $5 bill, one $2 coin, one 10¢ coin, and three 1¢ coins
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Example 3:
You work in the returns and refund department at a major hardware store. A customer returned
an item that she had paid cash for. She is supposed to receive a cash refund of $31.61. If you
want to use the fewest number of bills and coins, what bills and coins should the customer
receive?
Answer:
-
you need one $20 bill
you need one $10 bill
no $5 bills are needed
no $2 coins are needed
you need one $1 coin
you need two 25¢ coins (quarters)
you need one 10¢ coin (dime)
no 5¢ coins (nickels) are needed
you need one 1¢ coin (pennie)
$20.00
$10.00
$1.00
$0.50
$0.10
$0.01
$31.61
one $20 bill, one $10 bill, one $1 coin, two 25¢ coins, one 10¢ coin, and one 1¢ coin
Example 4:
Denise purchased concert tickets for Monica. Monica now owes Denise $54.30. If Monica
wants to pay back what she owes using the fewest number of bills and coins, what bills and coins
should she give to Denise?
Answer:
-
you need two $20 bills
you need one $10 bill
no $5 bills are needed
you need two $2 coins
no $1 coins are needed
you need one 25¢ coin (quarter)
no 10¢ coins (dimes) are needed
you need one 5¢ coin (nickel)
no 1¢ coins (pennies) are needed
$40.00
$10.00
$4.00
$0.25
$0.05
$54.30
two $20 bills, one $10 bill, two $2 coins, one 25¢ coin, and one 5¢ coin
Note: Feel free to use money manipulatives when doing this section of work.
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Questions:
1. A partially completed answer has been provided for each of these questions. Finish the
answer by filling the blanks with the word zero, one, two, three or four.
(a) Using the fewest number of bills and coins, make $2.23.
Answer:
- you need __________ $5 bill(s)
- you need __________ $2 coin(s)
- you need __________ $1 coin(s)
- you need __________ 25¢ coin(s)
- you need __________ 10¢ coin(s)
- you need __________ 5¢ coin(s)
- you need __________ 1¢ coin(s)
(b) Using the fewest number of bills and coins, make $5.67.
Answer:
- you need __________ $5 bill(s)
- you need __________ $2 coin(s)
- you need __________ $1 coin(s)
- you need __________ 25¢ coin(s)
- you need __________ 10¢ coin(s)
- you need __________ 5¢ coin(s)
- you need __________ 1¢ coin(s)
(c) Using the fewest number of bills and coins, make $9.34.
Answer:
- you need __________ $5 bill(s)
- you need __________ $2 coin(s)
- you need __________ $1 coin(s)
- you need __________ 25¢ coin(s)
- you need __________ 10¢ coin(s)
- you need __________ 5¢ coin(s)
- you need __________ 1¢ coin(s)
(d) Using the fewest number of bills and coins, make $6.82.
Answer:
- you need __________ $5 bill(s)
- you need __________ $2 coin(s)
- you need __________ $1 coin(s)
- you need __________ 25¢ coin(s)
- you need __________ 10¢ coin(s)
- you need __________ 5¢ coin(s)
- you need __________ 1¢ coin(s)
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$2.00
$0.20
$0.03
$2.23
$5.00
$0.50
$0.10
$0.05
$0.02
$5.67
$5.00
$4.00
$0.25
$0.05
$0.04
$9.34
$5.00
$1.00
$0.75
$0.05
$0.02
$6.82
Draft
C. D. Pilmer
(e) Using the fewest number of bills and coins, make $45.64.
Answer:
- you need __________ $20 bill(s)
- you need __________ $10 bill(s)
- you need __________ $5 bill(s)
- you need __________ $2 coin(s)
- you need __________ $1 coin(s)
- you need __________ 25¢ coin(s)
- you need __________ 10¢ coin(s)
- you need __________ 5¢ coin(s)
- you need __________ 1¢ coin(s)
$40.00
$5.00
$0.50
$0.10
$0.04
$45.64
2. A partially completed answer has been provided for each of these questions. Finish the
answer by filling in the column on the right hand side of the page.
(a) Using the fewest number of bills and coins, make $3.49.
Answer:
- you need zero $20 bills
- you need zero $10 bills
- you need zero $5 bills
- you need one $2 coin
- you need one $1 coin
- you need one 25¢ coin
- you need two 10¢ coin
- you need zero 5¢ coins
- you need four 1¢ coins
$3.49
(b) Using the fewest number of bills and coins, make $64.23.
Answer:
- you need three $20 bills
- you need zero $10 bills
- you need zero $5 bills
- you need two $2 coins
- you need zero $1 coins
- you need zero 25¢ coins
- you need two 10¢ coins
- you need zero 5¢ coins
- you need three 1¢ coins
$64.23
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(c) Using the fewest number of bills and coins, make $18.90.
Answer:
- you need zero $20 bill
- you need one $10 bill
- you need one $5 bill
- you need one $2 coin
- you need one $1 coin
- you need three 25¢ coins
- you need one 10¢ coin
- you need one 5¢ coin
- you need zero 1¢ coins
$18.90
3. Complete the following questions by filling in the blanks and the column on the right side of
the page.
(a) Using the fewest number of bills and coins, make $24.08.
Answer:
- you need _________ $20 bill(s)
- you need _________ $10 bill(s)
- you need _________ $5 bill(s)
- you need _________ $2 coin(s)
- you need _________ $1 coin(s)
- you need _________ 25¢ coin(s)
- you need _________ 10¢ coin(s)
- you need _________ 5¢ coin(s)
- you need _________ 1¢ coin(s)
$24.08
(b) Using the fewest number of bills and coins, make $31.29.
Answer:
- you need _________ $20 bill(s)
- you need _________ $10 bill(s)
- you need _________ $5 bill(s)
- you need _________ $2 coin(s)
- you need _________ $1 coin(s)
- you need _________ 25¢ coin(s)
- you need _________ 10¢ coin(s)
- you need _________ 5¢ coin(s)
- you need _________ 1¢ coin(s)
$31.29
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(c) Using the fewest number of bills and coins, make $62.87.
Answer:
- you need _________ $20 bill(s)
- you need _________ $10 bill(s)
- you need _________ $5 bill(s)
- you need _________ $2 coin(s)
- you need _________ $1 coin(s)
- you need _________ 25¢ coin(s)
- you need _________ 10¢ coin(s)
- you need _________ 5¢ coin(s)
- you need _________ 1¢ coin(s)
$62.87
(d) Using the fewest number of bills and coins, make $58.30.
Answer:
- you need _________ $20 bill(s)
- you need _________ $10 bill(s)
- you need _________ $5 bill(s)
- you need _________ $2 coin(s)
- you need _________ $1 coin(s)
- you need _________ 25¢ coin(s)
- you need _________ 10¢ coin(s)
- you need _________ 5¢ coin(s)
- you need _________ 1¢ coin(s)
$58.30
4. Using the fewest number of bills and coins, make each of the following amounts of money.
(a) $3.45 _________________________________________________________________
_________________________________________________________________
(b) $5.80 _________________________________________________________________
_________________________________________________________________
(c) $6.52 _________________________________________________________________
_________________________________________________________________
(d) $21.34 _________________________________________________________________
_________________________________________________________________
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(e) $45.27 _________________________________________________________________
_________________________________________________________________
(f) $7.59 _________________________________________________________________
_________________________________________________________________
(g) $8.33 _________________________________________________________________
_________________________________________________________________
(h) $31.77 _________________________________________________________________
_________________________________________________________________
(i) $50.40 _________________________________________________________________
_________________________________________________________________
(j) $43.15 _________________________________________________________________
_________________________________________________________________
(k) $30.90 _________________________________________________________________
_________________________________________________________________
(l) $4.64 _________________________________________________________________
_________________________________________________________________
(m) $16.55 _________________________________________________________________
_________________________________________________________________
(n) $62.07 _________________________________________________________________
_________________________________________________________________
(o) $49.73 _________________________________________________________________
_________________________________________________________________
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Answers:
1.
(a)
zero $5 bill(s)
one $2 coin(s)
zero $1 coin(s)
zero 25¢ coin(s)
two 10¢ coin(s)
zero 5¢ coin(s)
three 1¢ coin(s)
(b)
one $5 bill(s)
zero $2 coin(s)
zero $1 coin(s)
two 25¢ coin(s)
one 10¢ coin(s)
one 5¢ coin(s)
two 1¢ coin(s)
(d)
one $5 bill(s)
zero $2 coin(s)
one $1 coin(s)
three 25¢ coin(s)
zero 10¢ coin(s)
one 5¢ coin(s)
two 1¢ coin(s)
(e)
two $20 bill(s)
zero $10 bill(s)
one $5 bill(s)
zero $2 coin(s)
zero $1 coin(s)
two 25¢ coin(s)
one 10¢ coin(s)
zero 5¢ coin(s)
four 1¢ coin(s)
2.
(a)
3.
(a)
NSSAL
©2008
$2.00
$1.00
$0.25
$0.20
$0.04
-
(b)
$60.00
$4.00
$0.20
$0.03
(c)
(c)
you need one $20 bill(s)
you need zero $10 bill(s)
you need zero $5 bill(s)
you need two $2 coin(s)
you need zero $1 coin(s)
you need zero 25¢ coin(s)
you need zero 10¢ coin(s)
you need one 5¢ coin(s)
you need three 1¢ coin(s)
one $5 bill(s)
two $2 coin(s)
zero $1 coin(s)
one 25¢ coin(s)
zero 10¢ coin(s)
one 5¢ coin(s)
four 1¢ coin(s)
$10.00
$5.00
$2.00
$1.00
$0.75
$0.10
$0.05
-
$20.00
$4.00
$0.05
$0.03
$24.08
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4.
(b)
-
you need one $20 bill(s)
you need one $10 bill(s)
you need zero $5 bill(s)
you need zero $2 coin(s)
you need one $1 coin(s)
you need one 25¢ coin(s)
you need zero 10¢ coin(s)
you need zero 5¢ coin(s)
you need four 1¢ coin(s)
$20.00
$10.00
$1.00
$0.25
$0.04
$31.29
(c)
-
you need three $20 bill(s)
you need zero $10 bill(s)
you need zero $5 bill(s)
you need one $2 coin(s)
you need zero $1 coin(s)
you need three 25¢ coin(s)
you need one 10¢ coin(s)
you need zero 5¢ coin(s)
you need two 1¢ coin(s)
$60.00
$2.00
$0.75
$0.10
$0.02
$62.87
(d)
-
you need two $20 bill(s)
you need one $10 bill(s)
you need one $5 bill(s)
you need one $2 coin(s)
you need one $1 coin(s)
you need one 25¢ coin(s)
you need zero 10¢ coin(s)
you need one 5¢ coin(s)
you need zero 1¢ coin(s)
$40.00
$10.00
$5.00
$2.00
$1.00
$0.25
$0.05
$58.30
(a)
$3.45
one $2 coin, one $1 coin, one 25¢ coin, two 10¢ coins
(b)
$5.80
one $5 bill, three 25¢ coins, one 5¢ coin
(c)
$6.52
one $5 bill, one $1 coin, two 25¢ coins, two 1¢ coins
(d)
$21.34
one $20 bill, one $1 coin, one 25¢ coin, one 5¢ coin, four 1¢ coins
(e)
$45.27
two $20 bills, one $5 bill, one 25¢ coin, two 1¢ coins
(f)
$7.59
one $5 bill, one $2 coin, two 25¢ coins, one 5¢ coin, four 1¢ coins
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C. D. Pilmer
(g)
$8.33
one $5 bill, one $2 coin, one $1 coin, one 25¢ coin, one 5¢ coin, three 1¢
coins
(h)
$31.77
one $20 bill, one $10 bill, one $1 coin, three 25¢ coins, two 1¢ coins
(i)
$50.40
two $20 bills, one $10 bill, one 25¢ coin, one 10¢ coin, one 5¢ coin
(j)
$43.15
two $20 bills, one $2 coin, one $1 coin, one 10¢ coin, one 5¢ coin
(k)
$30.90
one $20 bill, one $10 bill, three 25¢ coins, one 10¢ coin, one 5¢ coin
(l)
$4.64
two $2 coins, two 25¢ coins, one 10¢ coin, four 1¢ coins
(m) $16.55
one $10 bill, one $5 bill, one $1 coin, two 25¢ coins, one 5¢ coin
(n)
$62.07
three $20 bills, one $2 coin, one 5¢ coin, two 1¢ coins
(o)
$49.73
two $20 bills, one $5 bill, two $2 coins, two 25¢ coins, two 10¢ coins,
three 1¢ coins
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Total Cost Including Tax
With most purchases, we have to pay tax. In Nova Scotia we pay a 13% tax called the
harmonized sales tax (HST). This activity sheet shows you how to use a calculator to
work out the total cost of a purchase.
Example 1:
Kendrick is buying a photo album for $7.89. What is the cost after tax?
Answer:
Step 1 - Calculate the tax.
You need to take 13% of $7.89. On a calculator, multiply 0.13 by 7.89 and round
off the answer to the nearest hundredths.
0.13 × 7.89 = 1.0257 (round it to 1.03)
Step 2 - Calculate the total cost after tax.
Using a calculator, add the tax that you calculated in step 1 to the price of the
item.
1.03 + 7.89 = $8.92
The cost of the photo album after tax is $8.92.
Example 2:
Janet is going to buy a DVD that costs $12.99 before tax. How much money does she need to
buy the DVD?
Answer:
Step 1 - Calculate the tax.
You need to take 13% of $12.99. On a calculator, multiply 0.13 by 12.99 and
round off the answer to the nearest hundredths.
0.13 × 12.99 = 1.6887 (round it to 1.69)
Step 2 - Calculate the total cost after tax.
Using a calculator, add the tax that you calculated in step 1 to the price of the
item.
1.69 + 12.99 = $14.68
Janet will need $14.68 to pay for the DVD.
Example 3:
Marcus wants to buy an item that costs $17.99 before tax. Can he buy the item if he only has a
$20 bill? Show work that supports your answer.
Answer:
Step 1 - Calculate the tax.
0.13 × 17.99 = 2.3387 (round it to 2.34)
Step 2 - Calculate the total cost after tax.
2.34 + 17.99 = $20.33
The cost after tax is $20.33. Marcus doesn’t have enough money.
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Example 4:
Shelly is buying the following items for her apartment.
Toaster: $22.99
Table Lamp: $35.99
Picture Frame: $12.99
How much will her bill come to?
Answer:
Step 1 - Calculate the total cost before taxes.
Using a calculator, add the prices of all the items purchased.
22.99 + 35.99 + 12.99 = 71.97
Step 2 - Calculate the tax.
You need to take 13% of $71.97. On a calculator, multiply 0.13 by 71.97 and
round off the answer to the nearest hundredths.
0.13 × 71.97 = 9.3561 (round it to 9.36)
Step 3 - Calculate the total cost after tax.
Using a calculator, add the tax that you calculated in step 2 to the total cost you
calculated in step 1.
9.36 + 71.97 = $81.33
The total cost of these items after tax is $81.33
Questions:
1. Gwen is purchasing an answering machine. It costs $27.99 before taxes. How much money
does she need to buy this item?
2. Richard is going to buy a fan for $16.99 before tax. What is the cost after tax?
3. Steve needs to buy two different packages of light bulbs. One package costs $3.49 before tax
and the other costs $6.99 before tax. If he buys both packages, what is the total cost after
tax?
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4. Lynn has two $20 bills. She wants to buy a power drill that costs $34.99 before tax. Does
she have enough money? Show work that supports your answer.
5. Candice has to buy school supplies for her daughter. She bought the following items. The
prices listed are before taxes.
Package of Pens
$4.99
Eraser
$0.79
Highlighter Pen
$1.59
Pad of Paper
$2.49
How much will Candice have to pay at the cash register?
6. Thomas has a $10 and $20 bill. He wants to buy the following items. All prices listed are
before tax.
Package of Socks
$8.99
Bag of Dog Food
$11.79
Magazine
$5.99
Does he have enough cash to purchase all of these items? Show work that supports your
answer.
7. A picture frame costs $12.99 before tax. If you decide to purchase four of these frames, what
is the total cost after tax?
8. A litre of motor oil costs $3.69 before tax. If you need to purchase 3 litres, what is the total
cost after tax?
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Answers:
1. $31.63
2. $19.20
3. $11.84
4. Yes, $40 is enough to pay a $39.54 bill.
5. $11.14
6. No, $30 is not enough to pay a $30.25 bill.
7. $58.71
8. $12.51
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Discounts
A discount is a reduction in a price. When a discount on an item is offered, the rate of
discount is often advertised as a percent of the regular price. For example a television,
regularly priced at $199, may be advertised as 15% off during a particular sale. It is
important to be able to determine the cost of the item after the discount. You will learn
how to do this using a calculator.
Example 1:
Tammy has been looking for a dress for a friend’s wedding. She found a nice
dress that had a regular price of $89.99. Fortunately she learned that if she
returned in two days, the dress would be discounted by 40%. What will the sale
price of the dress be?
Answer:
Step 1 - Figure out the percentage that you have to pay.
Take 100% and subtract the discount.
100% - 40% = 60%
That means that with 40% off, she still has to pay 60% of the regular price.
Step 2 - Figure out the sales price.
Take the percentage that you worked out in Step 1, express it as a decimal, and
multiply it by the regular price. Round off the answer to the nearest hundredths.
60% of $89.99
0.60 × 89.99 = 53.994 (round to 53.99)
The cost of the item is $53.99 before tax. This is called the sale price.
Example 2:
A leather jacket, regularly priced at $129.99, had its price reduced twice. It was first reduced by
20%. A few weeks later it was reduced by 10% of the discount price. What was the newest sale
price of the jacket?
Answer:
If the price is first reduced by 20%, then someone would have to pay 80% (100% - 20%)
of the regular price. That means we need to take 80% of $129.99.
0.80 × 129.99 = 103.992 (round to 103.99)
The first sale price was $103.99. We need to now discount this price by 10%. If the
price is first reduced by 10%, then someone would have to pay 90% (100% - 10%) of the
first sale price. Take 90% of $103.99.
0.90 × 103.99 = 93.591 (round to 93.59)
The newest sale price of the jacket was $93.59
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Questions:
1. Yemon is going to buy paint for her apartment. A 4 litre container normally sells for $32.99.
Fortunately she has a coupon that allows her to receive a 10% discount. How much will she
have to pay for a 4 litre container of paint before tax?
2. Calculate the sale price (i.e. price before tax) of each item. A sample question (*) has been
completed for you.
(*) a 35.99 blender on sale at 20% off
0.80 × 35.99 = $28.79
(a) a $89.99 winter jacket on sale at 30% off
________________________
(b) a $39.99 toaster oven on sale at 25% off
________________________
(c) a $42.99 sweater on sale at 40% off
________________________
(d) a $49.99 video game on sale at 15% off
________________________
(e) a $19.99 DVD movie on sale at 20% off
________________________
(f) a $86.99 comforter reduced by 40%
________________________
(g) a $94.99 dress discounted by 60%
________________________
(h) a $259.99 television on sale at 20% off
________________________
(i) 30% off a hat regularly priced at $21.99
________________________
3. Two stores are selling the same item. Which store is offering a better sale price?
Store A - a $95.99 item with a 20% discount
Store B - a $87.99 item with a 10% discount
4. A power drill that was regularly priced at $57.99 had its price reduced twice. The first week
it was advertised as 25% off. A week later it was reduced 10% of the previous sale price.
What was the new sale price?
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Answers:
1. $29.69
2. (a)
(c)
(e)
(g)
(i)
$62.99
$25.79
$15.99
$37.99
$15.39
(b)
(d)
(f)
(h)
$29.99
$42.49
$52.19
$207.99
3. Store A ($76.79 is better than $79.19)
4. $39.14
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Discounts and Tax
A discount is a reduction in a price. When a discount on an item is offered, the rate of
discount is often advertised as a percent of the regular price. It is important to be able
to determine the cost of the item after the discount, and then factor in the tax (HST).
You will learn how to do this using a calculator.
Example 1:
If you spend over $150 at a particular outlet store, you are given a 20% discount.
Brittany bought items totaling $168.24 before tax.
(a) How much will the items cost before tax?
(b) How much will the items cost after tax?
Answers:
(a) Step 1 - Figure out the percentage that you have to pay.
Take 100% and subtract the discount.
100% - 20% = 80%
That means that with 20% off, you still have to pay 80% of the regular price.
Step 2 - Figure out the sales price.
Take the percentage that you worked out in Step 1, express it as a decimal, and
multiply it by the regular price. Round off the answer to the nearest hundredths.
80% of $168.24
0.80 × 168.20 = 134.592 (round to 134.59)
The cost of the item is $134.59 before tax. This is called the sale price.
(b) Step 1 - Calculate the tax.
You need to take 13% of $134.59. On a calculator, multiply 0.13 by 134.59 and
round off the answer to the nearest hundredths.
0.13 × 134.59 = 17.4967 (round it to 17.50)
Step 2 - Calculate the total cost after tax.
Using a calculator, add the tax that you calculated in step 1 to the discounted
price of the item.
17.50 + 134.59 = $152.09
The cost of the items after tax is $152.09.
Example 2:
A shoe store has a “Buy Two Items and Get the Lower Priced Item at 25% Off” sale. Rajani
buys a pair of running shoes regularly priced at $49.99 before tax and a pair of dress shoes
costing $42.99 before tax.
(a) What is her total bill before tax?
(b) What is her total bill after tax?
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Answers:
(a) The discount only applies to the lower priced item (dress shoes: $42.99).
If you get 25% off, that means you pay 75% (100% - 25%) of the regular price.
Take 75% of $42.99 and round to the nearest hundredth.
0.75 × 42.99 = 32.24
Add the price of the regularly priced running shoes to the discounted price of the dress
shoes.
49.99 + 32.24 = 82.23
The total cost for the shoes before tax is $82.23.
(b) Find the tax by taking 13% of $82.23 and rounding it to the nearest hundredth.
0.13 × 82.23 = 10.69
Add the tax to total cost before tax.
10.69 + 82.23 = 92.92
The total cost for the shoes after tax is $92.92.
Example 3:
Blockbuster DVD normally sells Season 1 of Lost for $49.99 before tax. Prior to Christmas
holidays, they reduced the price by 30%. For Boxing Day, the price is reduced 15% of the
discounted price.
(a) Prior to Christmas, what is the cost of Season 1 after tax?
(b) On Boxing Day, what is the cost of Season 1 after tax?
(c) If they offered 45% off the regular price, would it be the same as the Boxing Day sale price?
Answers:
(a) Prior to Christmas: 30% off sale
If you get 30% off, that means you pay 70% (100% - 30%) of the regular price.
Take 70% of $49.99 and round to the nearest hundredths.
0.70 × 49.99 = 34.99 (sale price)
Find the tax on a purchase of $34.99.
0.13 × 34.99 = 4.55
Add the tax to the sale price.
4.55 + 34.99 = 39.54
If you purchase the Season 1 prior to Christmas, the cost after tax is $39.94.
(b) Boxing Day Sale: 15% off the discounted price
If you get 15% off, that means you pay 85% (100% - 15%) of the discounted price.
Take 85% of $34.99 and round to the nearest hundredths.
0.85 × 34.99 = 29.74 (new sale price)
Find the tax on a purchase of $29.74.
0.13 × 29.74 = 3.87
Add the tax to the new sale price.
3.87 + 29.74 = 33.61
If you purchase the Season 1 prior on Boxing Day, the cost after tax is $33.61.
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(c) If you get 45% off, that means you pay 55% (100% - 45%) of the regular price.
Take 55% of $49.99 and round to the nearest hundredths.
0.55 × 49.99 = 27.49
The 45% off sale price is $27.49. In question (b) we learned that the 30% off followed
by 15% off was $29.74. The sales prices are not the same because the 15% taken off on
the Boxing Day sale was 15% off the discounted price, rather than the regular price.
Questions:
1. A cordless phone is regularly priced at $37.99. You purchase this phone during a 20% off
sale.
(a) What is the cost of the phone before tax?
(b) What is the cost of the phone after tax?
2. Monica has been looking at a blouse that regularly costs $59.99. She is not willing to pay
that amount for the blouse but when the store has its annual blow-out sale, she reconsiders.
The blouse is marked down 60%.
(a) What is the cost of the blouse before tax?
(b) What is the cost of the blouse after tax?
3. Chantelle needs to buy a pair of running shoes for her child. She has a coupon that gives her
15% off if she purchases the shoes between August 21 and 28. The regular price of the shoes
is $39.99.
(a) If she uses the coupon, what is the cost of the shoes before tax?
(b) If she uses the coupon, what is the cost of the shoes after tax?
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4. Jamie has three $20 bills. Does he have enough money to purchase a $57.99 mp3 player
during a 10% off sale? Show work to support your answer.
5. Pam has a $10 and $20 bill. Does she have enough money to buy a $34.99 clock radio
during a 20% off sale? Show work to support your answer.
6. A men’s clothing store is offering a “Buy Two and Get the Lower Priced Item at 50% Off”
sale. Samir decides to purchase two pairs of pants. One pair costs $46.99 and the other pair
costs $52.99.
(a) What is the total cost before tax?
(b) What is the total cost after tax?
7. A video store is offering a “Buy Two and Get the Lower Priced Item at 75% Off” sale.
Kiana decides to purchase two DVDs. One DVD costs $21.99 and the other DVD costs
$17.99.
(a) What is the total cost before tax?
(b) What is the total cost after tax?
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8. A clothing store is having a 20% off everything sale. Candice decides to purchase a sweater,
a pair of pants, and a blouse. The regular prices of these items are listed below.
Sweater: $32.99
Pair of Pants: $39.99
Blouse: $24.99
(a) What is the total cost before tax?
(b) What is the total cost after tax?
9. A electronics store is having a 15% off everything sale. Dave decides to purchase a DVD, a
CD, and a video game. The regular prices of these items are listed below.
DVD: $15.99
CD: $12.99
Video Game: $29.99
(a) What is the total cost before tax?
(b) What is the total cost after tax?
10. Donnie wants to buy a laptop computer that had its price reduced twice. The computer
normally costs $759.99 but its price was first reduced by 15%. Two weeks later, the price
was reduced by 10% of the sale price.
(a) What is the latest sale price of the computer?
(b) If he purchases the computer after the price was reduced twice, what is the cost after tax?
11. A $249.99 video game system is reduced by 20%. Three weeks later, the price is reduced by
10% of the sale price. If you purchase the game system after the price was reduced twice,
what is the cost after tax?
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Answers:
1. (a) $30.39
(b) $34.34
2. (a) $24.00
(b) $27.12
3. (a) $33.99
(b) $38.41
4. Yes, he has $60 and the bill comes to $58.97.
5. No, she has $30 and the bill comes to $31.63.
6. (a) $76.49
(b) $86.43
7. (a) $26.49
(b) $29.93
8. (a) $78.38
(b) $88.57
9. (a) $50.12
(b) $56.64
10. (a) $581.39
(b) $656.97
11. $203.39
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Estimating the Total
Everyone, at some point in their life, has gone to a cashier with several items that you want to
buy and then discovered that you do not have enough money to pay for them. You end up
having to put one or two items back. It can be a little embarrassing. It is important to be able to
estimate the total bill when buying several items. This skill can help avoid these embarrassing
situations, and, more importantly, help you stick to your budget.
There isn’t one correct way or one correct answer when doing estimation. It is important to
understand that people can use different estimation techniques and still get very reasonable
estimates.
Example 1:
Donna is in a grocery store where she buys the following items.
Lettuce $1.99
Cereal $2.79
Hamburger Meat $3.45
Soup $1.69
Estimate Donna’s bill for these four items.
Answers:
Estimating grocery bills is a little easier than other bills because tax is not charged on
food. Three different estimates have been provided. All three are reasonable estimates.
Estimate 1: Round everything up to the nearest dollar.
2 + 3 + 4 + 2 = $11
Estimate 2: Round everything up or down to the nearest half dollar.
2 + 3 + 3.5 + 1.5 = $10
Estimate 3: Group items of similar value together.
Two items (lettuce and soup) cost about $2 each.
Two items (cereal and meat) cost about $3 each.
2 + 2 + 3 + 3 = $10
Example 2:
Akira is buying the following items at Zel-Mart.
Shampoo $3.49
DVD $7.99
Cat Food: $6.49
Estimate Akira’s bill for these three items.
Answers:
You will have to factor in the tax (HST: 13%) on these items. Three different estimates
have been provided. All three are reasonable estimates.
Estimate 1: Round up to the nearest dollar and then add 10% to cover the taxes.
4 + 8 + 7 = 19
10% of 19 is 1.9 (round to 2)
2 + 19 = $21
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Estimate 2: Round up to the nearest half dollar and then add 10% to cover the taxes.
3.5 + 8 + 6.5 = 18
10% of 18 is 1.8 (round to 2)
2 + 18 = $20
Estimate 3: Round up or down to the nearest dollar and then add 15% to cover the taxes.
3 + 8 + 6 = 17
15% of 17 is hard to work out, 15% of 20 is easier, 15% of 20 is 3
3 + 17 = $20
Questions:
Remember you don’t have to pay tax when purchasing food.
1. In each case, estimate the cost of buying the items. You may want to use a scrap piece of
paper when working out some of these estimates.
(a) watermelon $3.99 cranberry cocktail $1.89
_____
(b) muffins $3.29
chicken breasts $14.99
_____
(c) fruit bars $2.29
rib roast $11.45
_____
(d) coffee $4.88
pineapple $2.99
_____
(e)`bologna $0.98
pasta $1.69
_____
(f) apples $1.99
beans $1.99
bread $1.69
_____
(g) ice cream $4.99
carrots $1.49
crackers $2.29
_____
(h) celery $1.29
pickles $2.49
apple strudel $3.49
_____
(i) bacon $3.99
cucumber $0.89
gravy mix $1.19
_____
(j) cake mix $1.69
flour $4.99
soya sauce $2.69
_____
(k) hot dogs $3.49
tomato juice $1.99 apple pie $5.49
_____
(l) chips $2.59
cauliflower $1.79 waffles $2.99
_____
(m) pasta $1.69
pickles $2.49
bacon $3.99
bologna $0.98
_____
(n) coffee $4.88
celery $1.29
waffles $2.99
beans $1.99
_____
(o) cucumber $0.89
fruit bars $2.29
gravy mix $1.19
ice cream $4.99
_____
(p) rib roast $9.89
flour $4.99
muffins $3.29
carrots $1.49
_____
(q) pineapple $2.99
apples $1.99
bread $1.69
chips $2.59
_____
(r) gravy mix $1.19
crackers $2.29
hot dogs $3.49
apple pie $5.49
_____
(s) watermelon $3.99 ice cream $3.99
fruit bars $2.29
soya sauce $2.69
_____
(t) waffles $2.99
coffee $4.88
apple strudel $3.49
_____
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cake mix $1.69
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2. When Jeff is purchasing groceries, he wants to estimate the total cost. The only problem is
that there are so many items to buy that he can not keep track of the numbers in his head. To
deal with this, Jeff carries his grocery list and writes down the approximate price of each
item. If he does this, he can keep track of the total bill. Jeff’s grocery list is on the left hand
side of page. If he is buying more than one of the items, he indicates this by putting a
number after the item. The actual grocery store prices are on the right hand side of the page.
Place the approximate value of each item in the blank on the grocery list, and then estimate
the total. The first three items on the list have been completed.
Grocery List:
Lettuce
Celery
Cucumber (2)
Apples
Bread (2)
Hamburger Meat
Bacon
Baked Beans
Fruit Bars
Taco Mix (3)
Coffee
Tomato Juice (2)
Cheese
Total:
Actual Prices:
Apples
Bacon
Bread
Baked Beans
Celery
Cheese
Coffee
Cucumber
Fruit Bars
Hamburger Meat
Lettuce
Taco Mix
Tomato Juice
2
1
2
$1.99
$3.99
$1.69
$1.99
$1.29
$3.49
$4.88
$0.89
$2.29
$5.49
$1.99
$1.19
$1.99
3. Amy’s grocery list is on the left side of the page. In some cases she is buying more than one
of a particular item. The actual prices of the items are on the right side of the page. Estimate
Amy’s total bill.
Grocery List:
Actual Prices:
Cauliflower
Carrots (2)
Pineapple
Watermelon
Muffins
Apple Pie
Fruit Cocktail (3)
Pasta (2)
Pickles
Chicken Breasts
Apple Juice (2)
Ice Cream
Total:
Apple Juice
Apple Pie
Carrots
Cauliflower
Chicken Breasts
Fruit Cocktail
Ice Cream
Muffins
Pasta
Pickles
Pineapple
Watermelon
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$1.29
$5.49
$1.49
$1.79
$14.99
$2.99
$3.99
$3.29
$1.69
$2.49
$2.99
$3.99
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C. D. Pilmer
4. In each case, estimate the cost of buying the items. You may want to use a scrap piece of
paper when working out some of these estimates.
(a) DVD $7.99
______
(b) Socks $12.99
______
(c) Video Game $39.99
______
(d) Magazine $4.99
T-shirt $17.99
______
(e) Doll $8.99
Toaster $19.99
______
(f) Motor Oil $8.99
Wrench Set $39.99
______
(g) Book $24.99
Reading Light $14.99
______
(h) Light Bulbs $7.99 Dimmer Switch $21.99
______
(i) Fan $29.99
______
Blender $39.99
(j) Blue Jeans $34.99 Shirt $19.99
______
(k) Paint $32.99
Paint Rollers $5.99
______
(l) Necklace $49.99
Earrings $24.99
______
(m) Nails $5.99
Screws $7.99
Hammer $19.99
______
(n) Toy Car $4.99
Doll $12.99
Board Game $16.99
______
(o) Rake $24.99
Grass Seed $9.99
Fertilizer $16.99
______
(p) Dress $44.99
Scarf $14.99
Gloves $19.99
______
(q) Basket $7.99
Towel $9.99
Hamper $14.99
______
5. Kirsteen is purchasing gifts for her two children. She is trying to keep track of how much
money she is spending using her holiday gift list. Use the list to estimate Kirsteen’s total bill.
Holiday Gift List:
Actual Prices:
Diecast Car (5)
Book (4)
Action Figure (2)
Video Game
Board Game
DVD (2)
T-shirt (2)
Total Before Tax:
Tax:
Total After Tax:
Action Figure
Board Game
Book
Diecast Car
DVD
T-shirt
Video Game
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$7.99
$14.99
$3.99
$0.99
$9.99
$14.99
$29.99
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C. D. Pilmer
6. Jake has to do some body work on his car before the next vehicle inspection. He’s gone to
Canadian Auto to pick up the following items.
(a) Use Jake’s list to estimate the total bill.
List:
Actual Prices:
Body Filler
Sandpaper (6)
Grinding Wheel
Fiberglass Fabric
Resin and Hardener
Primer Paint
Paint (3)
Total Before Tax:
Tax:
Total After Tax:
Body Filler
Fiberglass Fabric
Grinding Wheel
Paint
Primer Paint
Resin and Hardener
Sandpaper
$12.99
$16.99
$4.99
$3.99
$4.99
$14.99
$1.29
(b) Work out the actual price (including tax) using a calculator. How close is your estimate
to the actual price?
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Answers:
Answers will vary. A range of reasonable estimates has been provided in many cases. If your
answer is within that range, then you estimate is reasonable.
1. (a) $6
(b) $18 to $18.50
(c) $13 to $14
(d) $8
(e) $2.50 to $3
(f) $5.50 to $6
(g) $8.50 to $9.50
(h) $7 to $8
(i) $6
(j) $9 to $10
(k) $10 to $12
(l) $7 to $8
(m) $9 to $10
(n) $11 to $11.50
(o) $9 to $9.50
(p) $19 to $20
(q) $9 to $10
(r) $12 to $13
(s) $12.50 to $13.50
(t) $13 to $14
2. Total: $37.50 to $42.50
Two possible solutions have been provided. The first one is a low, yet reasonable, estimate.
The second one is a high, yet reasonable, estimate. Remember there are many more
acceptable answers.
Grocery List:
Lettuce
Celery
Cucumber (2)
Apples
Bread (2)
Hamburger Meat
Bacon
Baked Beans
Fruit Bars
Taco Mix (3)
Coffee
Tomato Juice (2)
Cheese
Total:
Grocery List:
2
1
2
2
3
5
4
2
2
3
4.50
4
3
$37.50
Lettuce
Celery
Cucumber (2)
Apples
Bread (2)
Hamburger Meat
Bacon
Baked Beans
Fruit Bars
Taco Mix (3)
Coffee
Tomato Juice (2)
Cheese
Total:
2
1
2
2
4
6
4
2
2.50
4
5
4
4
$42.50
3. Total: $54.50 to $59.50
For questions 4, 5 and 6, the tax has to be factored in.
4. (a) $9 to $10
(b) $14 to $15
(c) $44 to $46
(d) $25 to $27
(e) $32 to $34
(f) $54 to $57
(g) $44 to $46
(h) $33 to $35
(i) $77 to $81
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(j) $60 to $64
(k) $45 to $47
(l) $82 to $87
(m) $37 to $40
(n) $38 to $41
(o) $57 to $60
(p) $88 to $92
(q) $36 to $38
5. Total After Tax: $140 to $152
6. (a) Total After Tax: $78 to $88
(b) Actual Total After Tax
List:
Body Filler
Sandpaper (6)
Grinding Wheel
Fiberglass Fabric
Resin and Hardener
Primer Paint
Paint (3)
Total Before Tax:
Tax:
Total After Tax:
$12.99
$7.74
$4.99
$16.99
$14.99
$4.99
$11.97
$74.66
$9.71
$84.37
The actual total ($84.37) is close to the low estimate ($78) and the high estimate ($88).
Your estimate should be fairly close to the actual total. Being a few dollars above or
below the actual value is perfectly acceptable.
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Tips
When you go out to a restaurant for a meal, you are expected to tip the waiter or waitress for
good service. Typically people tip between 15% (good service) and 20% (exceptional service).
In this lesson you will learn how to work out a tip in your head. It should be noted that there is
more than one way to work out a tip in your head and therefore not everyone is going to come up
with the same answer. There will be a range of values that will be considered acceptable.
Example 1:
Kevin was dining with his daughter at Papa Dave’s Family Restaurant. His bill came to $37.32.
He was very pleased with the service and wants to leave a 20% tip. How much should he leave
as a tip?
Answer:
Three acceptable answers have been presented.
First Answer:
Round up to the nearest ten dollars. ($37.32 rounds up to $40)
If 10% of 40 is 4, then 20% of 40 would have to be twice as big.
The tip would be $8.
Second Answer: Round to the nearest dollar. ($37.32 rounds to $37)
If 10% of 37 is 3.70, then 20% of 37 would be twice as big.
The tip would be $7.40.
Third Answer:
Round down to the nearest five dollars. ($37.32 rounds to $35)
If 10% of 35 is 3.50, then 20% of 35 would be twice as big.
The tip would be $7.00.
Example 2:
Nashi and her partner went out for dinner. The meal and service was reasonably good so they
decided to leave a 15% tip. If their bill came to $62.80, how much should they leave as a tip?
Answer:
Three acceptable answers have been presented.
First Answer:
Round down to nearest ten dollars. ($62.80 rounds down to $60)
If 10% of 60 is 6 and 20% of 60 is 12, then 15% of 60 would have
to be half way between 6 and 12.
The tip would be $9.
Second Answer: Round up to the nearest five dollars. ($62.80 rounds up to $65)
If 10% of 65 is 6.50, then 5% would be 3.25. That means 15% of
65 would be 9.75. Round that down to 9.50.
The tip would be $9.50.
Third Answer:
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Round up to the nearest ten dollars. ($62.80 rounds up to $70)
If 10% of 70 is 7 and 20% of 60 is 4, then 15% of 60 would have
to be half way between 7 and 14. That gives you an answer.
Round 10.50 down because we rounded up at the start.
The tip would be $10.
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Questions:
1. Approximate a 15% and 20% tip for each of bills. Remember that there a range of
acceptable answers. Two sample questions (*) have already been completed.
Bill for Meal
15% Tip
20% Tip
(*)
$31.57
$4.50
$6
(*)
$88.03
$14
$18
(a)
$29.87
(b)
$21.04
(c)
$41.23
(d)
$11.35
(e)
$50.67
(f)
$71.56
(g)
$59.45
(h)
$25.72
(i)
$34.87
(j)
$15.67
(k)
$44.21
(l)
$63.97
(m)
$86.03
(n)
$22.56
(o)
$38.05
(p)
$43.07
(q)
$33.21
(r)
$58.06
2. Lisa got a bill of $34.05 when she went out to dinner. How much will she spend in total if
you include a 20% tip?
3. Patrick and Kamala went out to dinner and their bill came to $48.75. How much will they
spend in total if you include a 15% tip?
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Answers:
In each case there are a range of acceptable answers.
1.
Bill for Meal
15% Tip
20% Tip
(a)
$29.87
$4 to $5
$5.50 to $6
(b)
$21.04
$3 to $3.75
$4 to $4.50
(c)
$41.23
$6 to $7
$8 to $9
(d)
$11.35
$1.50 to $2
$2 to $2.50
(e)
$50.67
$7 to $8
$10 to $11
(f)
$71.56
$10 to $11
$14 to $15
(g)
$59.45
$8.50 to $9.50
$11.50 to $12
(h)
$25.72
$3.50 to $4.50
$5 to $5.50
(i)
$34.87
$4.50 to $5.50
$6.50 to $7.50
(j)
$15.67
$2 to $3
$3 to $3.50
(k)
$44.21
$6 to $7
$8 to $9
(l)
$63.97
$9 to $10
$12 to $13
(m)
$86.03
$12.50 to $14
$16.50 to $18
(n)
$22.56
$3 to $3.75
$4 to $5
(o)
$38.05
$5 to $6
$7 to $8
(p)
$43.07
$6 to $7
$8 to $9
(q)
$33.21
$4.50 to $5.50
$6 to $7
(r)
$58.06
$8 to $9
$11 to $12
2. $40 to $41.50
3. $55 to $56.50
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Unit Price
When you walk into a grocery store, you might have noticed that there are two prices listed on
the shelf. The shelf tag shows the total price and price per unit (unit price) for the item. The unit
price is usually in small print.
Martha’s Paper Plates
Martha’s Paper Plates
Family Pack: 20 plates
Party Pack: 50 plates
Unit Price:
Your Price:
Unit Price:
Your Price:
$0.05 per item
99¢
$0.04 per item
$1.89
With the above examples, the plates in the Party Pack appear to be a better buy because they
only cost 4¢ per plate. The plates in the Family Pack cost more at 5¢ per plate.
The unit price is found using the following formula.
Unit Price =
Price
Measure or Count
If you look at the calculation below, you can see how this formula was used to work out the unit
price for the Family Pack and Party Pack of Martha’s Paper Plates.
Price
Measure or Count
0.99
Unit Price =
20
Unit Price = $0.05 per plate
Price
Measure or Count
1.89
Unit Price =
50
Unit Price = $0.04 per plate
Unit Price =
Unit Price =
In some cases, stores advertise using the unit price. The value of meats and vegetables are often
expressed using the unit price.
Lean Ground Beef: $3.99 per pound or $8.80 per kilogram
Green Peppers: $1.49 per pound or $3.29 per kilogram
With some packaged foods, the unit price is expressed in terms of 100g or 100ml of the product.
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No Name BBQ Chips
Momma’s Canned Soups
270 g
284 ml
Unit Price:
Your Price:
Unit Price:
Your Price:
$0.92 per 100g
$2.49
$0.33 per 100 ml
95¢
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Example 1:
No Name BBQ Chips are sold in two sizes.
270 g bag for $2.49
515 g bag for $3.99
(a) Calculate the unit price per gram for each bag size.
(b) Calculate the unit price per 100 grams for each bag size.
(c) Which bag size is the best buy?
(d) Do you think that everyone buying No Name BBQ Chips should purchase the bag size you
selected in question (c)? Explain.
Answers:
(a) 270 g Bag
515 g Bag
2.49
270
Unit Price = $0.00922/g
3.99
515
Unit Price = $0.00775/g
Unit Price =
Unit Price =
(b) Multiply each answer in (a) by 100 to change from ‘dollars per gram’ to ‘dollars per 100
grams.’
270 g Bag
515 g Bag
0.00922 × 100 = 0.922
0.00775 × 100 = 0.775
Round to 0.92
Round to 0.78
Unit Price = $0.92 per 100 g
Unit Price = $0.78 per 100 g
(c) The 515 g bag is a better buy because it has a lower unit price.
(d) Even though the 515 g bag is a better buy, it may not be the best purchase for everyone.
For example, if you live alone and try to eat healthy, having a large bag of potato chips
may not be wise move. If you have strong willpower then you could avoid the chips but
they might go stale before you have a chance to finish the bag. If your willpower is
lacking, you may want to eat the whole bag over a very short period time. This would
mess up your plans to try to eat healthy. The big bag is the best buy but is not always the
best choice for everyone.
Example 2:
You can buy twelve rolls of double ply toilet paper for $6.99 or buy four rolls of single ply toilet
paper for $1.99. Determine the unit prices and then determine which one is a better buy.
Answer:
(Double Ply Toilet Paper)
Price
Unit Price =
Measure or Count
6.99
Unit Price =
12
Unit Price = $0.58 per roll
(Single Ply Toilet Paper)
Price
Unit Price =
Measure or Count
1.99
Unit Price =
4
Unit Price = $0.50 cents per roll
Although the single ply toilet paper has the lower unit price, you might not feel that it is a
better buy. You may feel that two ply toilet paper is worth a few extra cents a roll. In
this case, there isn’t a clear answer as to which one is a better buy.
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Sometimes foods packed in the "giant" or "family" size may seem like the best buy. You may
think that buying one large container will not cost as much as two or three smaller packages. But
larger containers do not always end up costing you less than smaller ones. It is important to look
at the unit price.
Foods that cost less per unit are not always the better buy. For example, a food with a lower unit
price may not be the same nutritional value. You may need to also check the nutritional facts on
the food label before making a decision. There is also the issue that bigger is not always better.
When it comes to food, it is possible purchasing large amounts and not being able to consume
them fast enough can result in spoiling. Although the understanding the unit price is important
when making purchases, it is not the only thing that you have to consider.
Questions:
1. A package of eight hot dog buns costs $1.89. Find the unit price.
2. A 32 ounce can of spaghetti sauce costs $2.29. Find the unit price.
3. Twelve cans of a particular soft drink costs $4.49. What is the price per can?
4. Complete the last column of the table. Include the appropriate units of measure. A sample
question (*) has been completed for you.
(*)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
NSSAL
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Item(s)
Potatoes
Tea
Eggs
Tomato Juice
Flour
Toilet Paper
Microwave Popcorn
Dry Dog Food
Grape Jam
Gym Passes
Apple Juice
Wood Screws
DVDs
Price
$5.49
$3.99
$2.49
$1.99
$5.29
$2.29
$5.49
$4.99
$1.89
$49.99
$1.69
$3.29
$12.99
Measure or Count
4.54 kilograms
72 bags
12 eggs
1.36 litres
2.5 kilograms
4 rolls
12 bags
2.27 kilograms
18 ounces
8 passes
1.36 litres
20 screws
3 DVDs
50
Unit Price
$1.21 per kilogram
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C. D. Pilmer
5. A 300 ml bottle of shampoo costs $3.29.
(a) Calculate the unit price per millilitre.
(b) Calculate the unit price per 100 millilitre.
6. Complete the last two columns in the chart. A sample question (*) has been completed for
you.
(*)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Item(s)
Price
Measure
Cheese Slices
Bread
Crackers
Macaroni
Corn Flakes
Peanut Butter
Coffee
Hot Dogs
$2.89
$2.49
$2.39
$1.69
$3.99
$2.79
$3.99
$2.69
250 grams
675 grams
450 grams
500 grams
675 grams
500 grams
300 grams
450 grams
Unit Price per
Gram
$0.0116 per gram
Unit Price per 100
Grams
$1.16 per 100 grams
7. Masato is buying mint tea bags. The brand he prefers is sold in boxes of 16 bags for $1.29,
48 bags for $2.89, and 100 bags for $4.69. Based only on the unit price, which size is the
best buy for Masato?
8. Tammy is looking for the best buy on a particular brand of cat food. The food is sold in 2.27
kg bags for $3.49, 4.54 kg bags for $6.89, and 11.35 kg bags for $15.99.
(a) Based only on the unit price, which size is the best buy for Tammy?
(b) Describe a situation where the best buy for Tammy would not be the cat food with the
lowest unit price.
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9. Swimming passes are sold in books of five for $12.50, books of ten for $22.50, and books of
twenty-five for $47.50.
(a) Based only on the unit price, which book of passes is the best buy?
(b) Describe a situation where the best buy on swim passes would not be the book of passes
with the lowest unit price.
10. Go to your local grocery store and find the price and unit price of three similar products.
Record the information below.
11. Give an example in your own life where you did not buy an item with the lowest unit price.
Why did you choose to do this?
12. Before you buy a large package size of a particular product, you should think about:
(a) the number of people in your house who will use the product
(b) if you have enough space to store the product
(c) if the larger size costs less per unit than smaller sizes
(d) all of the above
13. When you are trying to determine what is the best buy for a particular product, you should
consider:
(a) the unit price of the product
(b) the quality of the product
(c) how much of the product do you really need
(d) all of the above
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Answers:
1. $0.24 per bun
2. $0.07 per ounce
3. $0.37 per can
4. (a)
(c)
(e)
(g)
(i)
(k)
$0.06 per bag
$1.46 per litre
$0.57 per roll
$2.20 per kilogram
$6.25 per pass
$0.16 per screw
(b)
(d)
(f)
(h)
(j)
(l)
5. (a) $0.0110 per ml
6. (a)
(b)
(c)
(d)
(e)
(f)
(g)
$0.21 per egg
$2.12 per kilogram
$0.46 per bag
$0.11 per ounce
$1.24 per litre
$4.33 per DVD
(b) $1.10 per 100 ml
$0.00369 per gram, $0.37 per 100 grams
$0.00531 per gram, $0.53 per 100 grams
$0.00338 per gram, $0.34 per 100 grams
$0.00591 per gram, $0.59 per 100 grams
$0.00558 per gram, $0.56 per 100 grams
$0.0133 per gram, $1.33 per 100 grams
$0.00598 per gram, $0.60 per 100 grams
7. 16 bags: $0.08 per bag
48 bags: $0.06 per bag
100 bags: $0.05 per bag (best buy)
8 (a) 2.27 kg bag: $1.54 per kg
4.54 kg bag: $1.52 per kg
11.35 kg bag: $1.41 per bag (best buy)
(b) Answers will vary.
9. (a) Book of Five: $2.50 per pass
Book of Ten: $2.25 per pass
Book of Twenty-five: $1.90 per pass
(b) Answers will vary.
10. Answers will vary.
11. Answers will vary.
12. answer: (d)
13. answer: (d)
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Budgets
A budget is an organized plan for spending money. In order to create a reasonable budget, you
must know your:
1. sources of income (e.g. paycheck, tips, employment insurance checks, pension checks,
old age security checks, …)
2. fixed expenses (expenses that for the most part do not change from month to month, e.g.
rent, mortgage payments, car payments, …)
3. variable expenses (expenses that change from month to month, e.g. phone bill, clothing
expenses, …)
Gross income is commonly defined as the amount of a person's income before deductions
are made. Net income is a person’s income after deductions (Income Tax deductions,
Canada Pension Plan deductions, Employment Insurance deductions,…)
Example 1:
Veronica has an annual gross income of $30 000. Her net income is 80% of her gross income.
Determine Veronica’s monthly net income.
Answer:
•
•
Find her annual net income. This is done by taking 80% of her annual gross income.
0.80 × 30 000 = $24 000
Find her monthly net income. This done by taking the annual net income and
dividing it by 12.
24 000 ÷ 12 = $2000
Veronica’s monthly net income is $2000.
Example 2:
Anne has an annual gross income of $23 500. Her husband, Derek, has an annual gross income
of $21 900. They would like to rent an apartment that costs $940 a month plus $130 a month for
heat and electricity. If monthly shelter costs should not be more than 32% of monthly gross
income, should Anne and Derek consider renting this particular apartment?
Answer:
•
•
•
•
NSSAL
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Work out the total annual gross income.
23 500 + 21 900 = $45 400
Work out the total monthly gross income. This is done by taking the total annual
gross income and dividing it by 12.
45 400 ÷ 12 = $3783.33
Take 32% of the total monthly gross income
0.32 × 3783.33 = $1210.67
Compare the total shelter costs to the value worked out in the last step.
Total Shelter Costs per Month = 940 + 130
= $1070
Since $1070 is less than $1210.67, Anne and Derek can afford to rent this
particular apartment.
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Example 3:
Bashir moved west and is temporarily living with his grandparents. He does pay them a small
amount for rent and has to maintain the used car he purchased a few months ago. He is trying to
save some money so that he can attend college in a year. You have been supplied with his
monthly net income and expenses over a four month period.
Monthly Net Income: $1940
Expense Category
Rent
Car Payment
Car Insurance
Gas Money
Car Repair/Maintenance
Cell Phone
Clothing
Entertainment
College Savings
Other
Jan.
$250
$415
$135
$180
$0
$28
$120
$90
$500
$40
Feb.
$250
$415
$135
$160
$380
$41
$60
$80
$500
$50
Mar.
$250
$415
$135
$200
$40
$36
$75
$110
$500
$0
Apr.
$250
$415
$135
$180
$0
$52
$50
$100
$500
$30
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Which of these expenses are fixed expenses?
Which of these expenses are variable expenses?
Calculate Bashir’s total expenses for each of the four months.
What were Bashir’s average monthly expenses in that four month period?
In which month did Bashir have difficulty covering all his expenses?
How much money should Bashir budget each month to cover all of his expenses?
What were Bashir’s average monthly car repairs/maintenance expenses in that four
month period?
(h) Create a budget for Bashir.
Answers:
(a) fixed expenses: rent, car payment, car insurance, college savings
(b) variable expenses: gas money, car repair/maintenance, cell phone, clothing,
entertainment, other
(c) Total Expenses:
January: $1758
February: $2071
March: $1761
April: $1712
1758 + 2071 + 1761 + 1712
(d) Average Expenses =
4
= $1825.50
(e) Bashir had problems covering his expenses in February. His expenses ($2071) were
greater that his monthly net income ($1940) during that month.
(f) If his average expenses are $1825.50, he should probably budget that amount each
month.
0 + 380 + 40 + 0
(g) Average Car Repair/Maintenance Expenses =
4
= $105 per month
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(h) The last column is the budget column. Each of the values is found by averaging the
expenses in each of the expense categories. Answers were rounded to the nearest dollar.
Expense Category
Rent
Car Payment
Car Insurance
Gas Money
Car Repair/Maintenance
Cell Phone
Clothing
Entertainment
College Savings
Other
Jan.
$250
$415
$135
$180
$0
$28
$120
$90
$500
$40
Feb.
$250
$415
$135
$160
$380
$41
$60
$80
$500
$50
Mar.
$250
$415
$135
$200
$40
$36
$75
$110
$500
$0
Apr.
$250
$415
$135
$180
$0
$52
$50
$100
$500
$30
Budget
$250
$415
$135
$180
$105
$39
$76
$95
$500
$30
It should be noted with questions like (h), there are a variety of correct answers. For
example, some people like to round up to the nearest ten dollars in each of the expense
categories. Other people may feel that the data collected over the four months may not
give you a good idea of what the expenses truly are over the whole year. For example,
the average car repair/maintenance expense per month may be far more than $105. If a
person feels this way, they may want to budget $150 or more for car repairs/maintenance.
Remember that a budget is a best guess of future income and expenses, based on data and
personal experience.
Questions:
1. Determine the total monthly net income in each case. Round answers to the nearest dollar.
(a) Montez has a monthly net income of $1470, and his girlfriend has a monthly net income
of $1585.
_____________
(b) Lei has a monthly gross income of $2240. Her net income is approximately 75% of her
gross income.
_____________
(c) Monica has an annual net income of $36 000.
_____________
(d) Ryan’s annual gross income is $32 000. His net income is 80% of his gross income.
_____________
(e) Tanya’s annual net income is $21 000. She also receives $325 a month in child support.
_____________
(f) Shelly’s annual gross income is $37 600. Her net income is 75% of her gross income.
She also receives $300 a month in child support.
_____________
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2. Monthly shelter costs should not be more than 32% of monthly gross income. Angela’s
annual gross income is $18 000 and her partner’s is $16 500. Can they afford to rent an
apartment that costs $750 a month (with heat and water) if the electric bill is $85 a month?
Explain.
3. Monthly shelter costs should not be more than 32% of monthly gross income. Kiana makes
$26 800 a year (gross income) from her job and receives $3120 a year in child support. Can
she afford to rent an apartment that costs $650 a month (with heat and water) if the electric
bill is $95 a month? Explain.
4. The following chart categorizes Asra’s expenses over a three month period.
Expense Category
April
May
June
Rent (Shared Accommodations)
$450
$450
$450
Public Transportation
$60
$55
$60
Phone
$42
$38
$22
Food
$180
$160
$200
Clothing
$60
$20
$130
Cable/Internet
$42
$42
$42
Entertainment
$120
$50
$75
Electric Bill
$60
$60
$60
Life Insurance
$32
$32
$32
(a) Which of these expenses are largely fixed expenses?
(b) Which of these expenses are largely variable expenses?
(c) Calculate Arsa’s total expenses for each of the three months.
April: _________
May: __________
June: _________
(d) What were Arsa’s average monthly expenses in that three month period?
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(e) If Arsa has to reduce her spending by $100 per month, where would you advise her to
make the cuts?
(f) If Arsa’s net income for the year is $24 000, can she afford to have these expenses?
5. The following chart shows Jacob’s expenses over a four month period.
Expense Category
Mortgage (includes
property tax)
Condo Fees
Car Payments
Car Insurance
Gas Money for Car
Car Repairs/Maintenance
Phone
Food
Clothing
Cable/Internet
Entertainment
Electric Bill
Home Insurance
Life Insurance
Feb.
$790
March
$790
April
$790
May
$790
$170
$315
$92
$100
$0
$32
$180
$60
$62
$120
$135
$27
$42
$170
$315
$92
$110
$350
$40
$160
$0
$62
$50
$126
$27
$42
$170
$315
$92
$140
$0
$52
$200
$130
$62
$75
$107
$27
$42
$170
$315
$92
$160
$30
$56
$210
$65
$62
$40
$92
$27
$42
(a) Which of these expenses are largely fixed expenses?
(b) Which of these expenses are largely variable expenses?
(c) Calculate Jacob’s total expenses for each month.
February: ___________
March:
April:
___________
May:
___________
___________
(d) How much money should Jacob budget each month to cover his expenses?
____________
(e) What did Jacob’s variable expenses total in the May?
____________
(f) How much did it cost Jacob to operate the car in March? How much did it cost in April?
Why is there such a big difference?
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(g) Complete a monthly budget for Jacob by filling in the last column. (Answers will vary.)
Expense Category
Mortgage (includes tax)
Condo Fees
Car Payments
Car Insurance
Gas Money for Car
Car Repairs/Maintenance
Phone
Food
Clothing
Cable/Internet
Entertainment
Electric Bill
Home Insurance
Life Insurance
Feb.
$790
$170
$315
$92
$100
$0
$32
$180
$60
$62
$120
$135
$27
$42
Mar.
$790
$170
$315
$92
$110
$350
$40
$160
$0
$62
$50
$126
$27
$42
April
$790
$170
$315
$92
$140
$0
$52
$200
$130
$62
$75
$107
$27
$42
May
$790
$170
$315
$92
$160
$30
$56
$210
$65
$62
$40
$92
$27
$42
Budget
Total:
(h) How much do you think Jacob should budget to own and operate a car? Explain how you
arrived at this answer. (Answers may vary slightly.)
6. What is impulse buying? How might a budget stop you from buying on impulse?
7. What additional expenses would a single woman living in a bungalow in the suburbs have
compared to a single woman renting an apartment in walking distance of her work?
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8. With the equal billing option, a customer pays the same amount each month for heating oil
and/or electricity. Even though these expenses would normally be higher during the winter
months, the utility company predicts the average payment per month based on how much oil
and/or electricity the customer used in the previous year. Do you use this payment option?
Why or why not? Do you find that your payment choice easy to budget?
9. Patrick paints homes for a living and has an annual net income of $30 000. His present
monthly expenses are listed in the table below.
Monthly Net Income:
Pay from Job: $2500
(30 000 ÷ 12)
Fixed Expenses
Mortgage Payments (Duplex)
Home Insurance
Cable
Electricity (Equal Billing)
Phone (with Long Distance Plan)
Variable Expenses
Food
Clothing
Entertainment
Home Maintenance
Other
Total Monthly Expenses
$690
$50
$40
$200
$35
$280
$80
$120
$100
$50
$1645
If Patrick buys a used car, he will have to make monthly car loan payments of $260. He
would then have to factor in insurance ($90 per month), gasoline ($160 per month) and
maintenance costs. Do you think Patrick should purchase the car? Explain.
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10. Emma, an office administrator, has a gross income of $28 000. Her net income is about 80%
of her gross income. She is a single mother with a three year old child and pays $300 per
month for child care. She does not own a car and rents an apartment for $650 a month. The
rent includes heat and hot water. Create a monthly budget for Emma in the form of a table.
(Answers will vary.)
Monthly Net Income
Pay from Job:
Child Support:
______________
______________
Fixed Expenses
Variable Expenses
Total Monthly Expenses
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Answers:
1. (a) $3055
(b) $1680
(c) $3000
(d) $2133
(e) $2075
(f) $2650
2. They can afford the apartment. Their shelter costs should not be more than $920. The
shelter costs in this case are $835.
3. She can afford the apartment. Her shelter costs should not be more than $798. The shelter
costs in this case are $745.
4. (a) fixed expenses: rent, public transport, cable/internet, electric bill, life insurance
(b) variable expenses: phone, food, clothing, entertainment
(c) April: $1046
May: $907
June: $1071
(d) $1000
(e) reduce expenses related to the phone, clothing and entertainment
(f) She can afford these expenses. Her monthly net income is $2000 and her expenses are
approximately $1000 per month.
5. (a) fixed expenses: mortgage, condo fees, car payment, car insurance, cable/internet, home
insurance, life insurance
(b) variable expenses: gas money, car repairs/maintenance, phone, food, clothing,
entertainment, electric bill
(c) February: $2125
April: $2202
March: $2334
May: $2151
(d) Answers can vary slightly.
2125 + 2334 + 2202 + 2151
= $2203
One Possible Solution:
4
Any answer between $2250 and $2150 is probably quite reasonable.
(e) $653
(f) March: $867
April: $547
The difference is due to the large repair/maintenance bill in March.
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(g) Answers will vary slightly. Two possible answers have been provided.
Expense Category
Budget 1
Budget 2
Mortgage (includes tax)
$790
$790
Condo Fees
$170
$170
Car Payments
$315
$315
Car Insurance
$92
$92
Gas Money for Car
$128
$130
Car Repairs/Maintenance
$95
$100
Phone
$45
$50
Food
$188
$200
Clothing
$64
$70
Cable/Internet
$62
$62
Entertainment
$71
$70
Electric Bill
$115
$110
Home Insurance
$27
$27
Life Insurance
$42
$42
Total:
$2204
Total:
$2228
Any total between $2250 and $2150 is probably quite reasonable.
(h) Answers will vary slightly.
One Possible Solution: 315 + 92 + 128 + 95 = $630
Any answer between $650 and $600 is probably quite reasonable.
6. Impulse buying occurs when someone purchases an item quickly without carefully thinking
about the purchase. When making a purchase in this manner, the person may not consider if:
• they truly need the item,
• the item is priced reasonably,
• they can afford the item when one considers the other monthly expenses, or
• this purchase can be postponed until a later date.
If someone has created a budget, they have attempted to plan and think about potential
purchases. That person is less likely to engage in impulse buying because they understand
how straying from the budget can create long term problems.
7. Additional Expenses: car payment, car insurance, gas money, car repairs/maintenance,
mortgage, home insurance, home repair/maintenance, higher heating costs
8. Answers will vary because this question is asking for your opinion.
9. If you add $100 for car repair and maintenance, the total car costs come to $610. That means
his monthly expenses would total $2255. That only leaves him with an extra $245 a month.
He would be living paycheck-to-paycheck if he bought the car. He shouldn’t buy it.
10. Answers will vary.
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Designing a Budget
In this activity, you are going to design a budget for yourself, a friend or a family member. You
will have to determine your monthly net income, fixed expenses, and variable expenses.
Possible Income Sources:
Paycheque from Job, Tips, Employment Insurance, Child
Support, Disability Cheque, Social Assistance, Alimony,…
Possible Fixed Expenses:
Mortgage, Rent, Condo Fees, Property Taxes, House
Insurance, Car Insurance, Life Insurance, Car Loan, Heating
Bill (Equal Payments), Electrical Bill (Equal Payments), Cable,
Internet, Child Support Payments, Savings,…
Possible Variable Expenses: Home Repair/Maintenance, Entertainment, Clothing, Gifts,
Gas Money, Car Repair/Maintenance, Public Transportation,
Heating Bill, Electrical Bill, Phone, Credit Card Payments,…
Monthly Net Income Source
Total:
Fixed Expenses
Variable Expenses
Total:
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Layaway Purchases
When you buy things we tend to rely on cash, debit cards, or credit cards. When purchasing
more expensive items (e.g. electronics, furniture, jewelry,…) it can be difficult to raise the cash
in a short period of time. Relying on credit cards with these types of purchases is not always a
good bet. If you can’t pay off the balance on the credit card quickly, you can end up paying too
much in interest. In these cases, you may want to consider other payment options.
One such payment option is a layaway purchase. With this type of payment option, a buyer
puts down a deposit, often a percent of the total price (taxes included). The remaining amount is
paid when the item is picked up. No additional fees are charged to the buyer.
Example:
Rajani wants to purchase a necklace and matching earrings for her sister. Her sister’s birthday is
in five months time so she figures that it would be best to purchase them using the store’s
layaway plan. She is going to pay 15% down and the remainder in four months. The jewelry
costs $179 plus GST (13%).
(a) What is the total cost, including taxes?
(b) How much of a deposit did she put down?
(c) How much does she have to pay when she picks up the jewelry?
Answers:
(a) Take 13% of 179.
0.13 × 179 = 23.27
Add the tax to the ticketed price.
23.27 + 179 = $202.27
The total cost, including taxes is $202.27.
(b) Take 15% of $202.27
0.15 × 202.27 = $34.04
Rajani’s deposit will be $34.04.
(c) Subtract the deposit from the total cost.
202.27 - 34.04 = $168.23
Rajani will have to pay $168.23 when she picks up the jewelry.
Questions:
1. Robert wants to purchase a new game console for his son. Since this particular game console
is in high demand during the Christmas shopping season, he wants to purchase it in July but
pay for most of it in November. He decides to use the store’s layaway payment plan. He
will have to put 20% down in July. He will pay the remainder when he picks up the game
console in November. The console cost $289.99 before taxes.
(a) What is the cost of the game console after taxes?
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(b) How much of a deposit does he put down?
(c) How much does Robert have to pay in November when he picks up the console?
2. Janice has been looking for a particular watch that she saw in a magazine. She finds it in a
local department store but it costs more than she expected. It costs $129.99 before taxes.
She is worried that this particular watch will be sold-out before she can afford to buy it. She
decides to use the store’s layaway program. She will have to put 10% down and lay away
the watch for three months.
(a) What is the cost of the watch after taxes?
(b) How much of a deposit does she put down?
(c) How much does Janice have to pay when she picks up the watch?
3. Deangelo is going to buy a armchair (cost: $249.99 before taxes) using the store’s layaway
plan. He has to put 15% down and pay the remainder when picks up the chair in three
months time.
(a) How much of a deposit does Deangelo have to put down?
(b) How much does he have to pay when he picks up the armchair?
4. (a) What are the advantages of using the layaway payment option?
(b) What are the disadvantages of using the layaway payment option?
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Answers:
1. (a) $327.69
(b) $65.54
(c) $262.15
2. (a) $146.89
(b) $14.69
(c) $132.20
3. (a) $42.37
(b) $240.12
4. (a) -
no fees
no interest
allows you spread the purchase of an expensive item over several months
since you don’t immediately get the item, you are encouraged to save the money to
insure that you receive it
(b) - if you need this item immediately, then the layaway payment option is not suitable
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Rent-To-Own
When you buy things we tend to rely on cash, debit cards, or credit cards. When purchasing
more expensive items (e.g. electronics, furniture, jewelry,…) it can be difficult to raise the cash
in a short period of time. Relying on credit cards for these types of purchases is not always a
good bet. If you can’t pay off the balance on the credit card quickly, you can end up paying too
much in interest. In these cases, you may want to consider other payment options but we are
confident that most would not choose the rent-to-own option once they have completed this
activity sheet.
With the rent-to-own option, the consumer agrees to pay a monthly or weekly rental fee for a
specific rental period. If the item is rented for this full rental period, then the consumer will own
the item. Rent-to-own transactions can be appealing because they allow for low weekly or
monthly payments, no credit checks, cancellation of the transaction at any time, and immediate
use of the item.
Example:
Barb decided to purchase a new video game console for her son using rent-to-own. The $449.99
unit (before taxes) could be hers for twelve monthly payments of $80.
(a) If Barb decided to pay immediately for the console without using the rent-to-own option,
what would be the total cash price, including taxes?
(b) If she rented the console for the full twelve months, how much would she have paid in total?
(c) How much more did she pay using the rent-to-own option rather than paying with cash?
Answers:
(a) Take 13% of 449.99.
0.13 × 449.99 = 58.50
Add the tax to the ticketed price.
58.50 + 449.99 = $508.49
The total cash price, including taxes would be $508.49.
(b) 12 months at $80 per month
12 × 80 = $960
The total rental cost would be $960.
(c) 960 - 508.49 = $451.51
She paid $451.51 more using the rent-to-own option.
Questions:
1. Thomas wants to purchase a digital camera using a rent-to-own option. The $1099 camera
(before taxes) could be his for 90 weekly payments of $23.
(a) If Thomas decided to pay immediately for the camera without using the rent-to-own
option, what would be the total cash price, including taxes?
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(b) If he rented the camera for the full 90 weeks, how much would he have paid in total?
(c) How much more did he pay using the rent-to-own option rather than paying with cash?
(d) After completing question (c), do you think it is reasonable to charge that much more
using the rent-to-own rather than paying with cash? Explain.
2. Tylena decides to purchase a laptop computer using a rent-to-own option. The $899
computer (before taxes) could be hers for 12 monthly payments of $125.
(a) If Tylena decided to pay immediately for the laptop without using the rent-to-own option,
what would be the total cash price, including taxes?
(b) If she rented the laptop for the full twelve months, how much would she have paid in
total?
(c) How much more did she pay using the rent-to-own option rather than paying with cash?
(d) After completing question (c), do you think it is reasonable to charge that much more
using the rent-to-own rather than paying with cash? Explain.
3. A $499 video camera can be rented from a rent-to own agency for 60 weekly payments of
$14. How much more would you pay using the rent-to-own option rather than paying with
cash?
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4. Examine the two payment options (rent-to-own and credit card) for the same television.
Rent-to-Own Plan for a $250 TV:
Amount financed: $250
Weekly payment: $13
Number of weeks: 78 [18 months]
Finance charge: $764
Total of Payments: $1,014
Annual Percentage Rate: 265%
Department Store Sale of the same $250 TV using a credit card:
Amount financed 282.50 ($250 + 13% tax)
Monthly payment $18.27
Number of months 18
Total of Payments $328.86
Annual Percentage Rate 19.8%
(a) How much more expensive is it to buy the television using rent-to-own compared to
using a credit card?
(b) How many of these televisions could you buy using a credit card compared to the one
television you can get using the rent-to-own option?
5. A close friend has just moved to Calgary. He has emailed you and informs you that he is
thinking of getting a 32 inch flat screen television using a rent-to-own agency. He can get
the $799 television for 18 monthly payments of $75. Write an email to your friend advising
him on this matter. Be convincing.
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Answers:
1. (a)
(b)
(c)
(d)
$1241.87
$2070
$828.13
unreasonable
2. (a)
(b)
(c)
(d)
$1015.87
$1500
$484.13
unreasonable
3. $276.13
4. (a) $685.14
(b) 3
5. Answers will vary.
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Installment Plans
When you buy things we tend to rely on cash, debit cards, or credit cards. When purchasing
more expensive items (e.g. electronics, furniture, jewelry,…) it can be difficult to raise the cash
in a short period of time. Relying on credit cards with these types of purchases is not always a
good bet. If you can’t pay off the balance on the credit card quickly, you can end up paying too
much in interest. In these cases, you may want to consider other payment options.
With installment plans you initially pay the taxes on the item and an administration fee. The
remaining money is paid with equal monthly payments. You are not charged interest, however if
you make a late payment then you are charged interest on that payment. One of the benefits of
an installment plan is that you are permitted to take the item home as soon as you’ve paid the
initial administration fee and taxes.
Example 1:
Brian is going to buy a new bed mattress using a store’s installment plan. He is going to
purchase a mattress that costs $799 plus tax. He will have to pay a $45 administration fee and
the taxes at the time of purchase. Later he will make 12 equal monthly payments.
(a) If he purchased the mattress with cash, determine the total cost, including tax (HST: 13%).
(b) How much will he have to initially pay when he agrees to the installment plan?
(c) What is the amount of each monthly payment?
(d) How much does Brian finally pay for the mattress? Does this seem reasonable?
Answers:
(a) Take 13% of $799.
0.13 × 799 = 103.87
Add the tax to the ticketed price.
103.87 + 799 = $902.87
If Brian paid with cash, the total cost, including taxes, would be $902.87
(b) He has to pay the administration fee ($45) and the taxes ($103.87).
45 + 103.87 = $148.87
Brian initially has to pay $148.87.
(c) He still owes $799 which will be paid back in 12 equal payments.
799 ÷ 12 = $66.58
The monthly payments will be $66.58.
(d) The total cost includes the sales price ($799), the taxes ($103.87), and the administration
fee ($45).
799 + 103.87 + 45 = 947.87
Brian ends up paying $947.87. This is only $45 more than paying with cash. This seems
reasonable.
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Example 2:
You are interested in buying a $2199 dining room set using a store’s installment plan.
(a) How much tax will be charged on this purchase?
(b) If the store requires an initial payment of $325.87, how much are you paying as an
administration fee?
(c) If you have monthly payments of $122.17, are you making payments for 12 or 18 months?
(d) How much will you end up paying for the dining room set if you are using the store’s
installment plan?
Answers:
(a) Take 13% of $2199.
0.13 × 2199 = 285.87
The tax on the dining room set is $285.87.
(b) The initial payment is made up of the taxes and administration fee. If you subtract the
taxes from the initial payment, you will be left with the administration fee.
325.87 - 285.87 = 40
The administration fee is $40.
(c) After the initial payment, you still have to pay $2199. If we take $2199 and divide it by
$122.17, you can figure out how many monthly payments you have to make.
2199 ÷ 122.17 = 18
The monthly payments will be made for 18 months.
(d) The total cost includes the sales price ($2199), the taxes ($285.87), and the administration
fee ($40).
2199 + 285.87 + 40 = 2524.87
You end up paying $2524.87 for the dining room set.
Questions:
1. Tracy is going to buy a sofa that costs $899 before taxes. She is going to purchase it using
the store’s installment plan. The plan’s administration fee is $39. She plans on making 12
equal monthly payments.
(a) How much will she have to pay when she initially picks up the sofa?
(b) How much are her monthly payments?
(c) How much does she end up paying for the sofa on the installment plan?
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2. Akira is going to purchase a leather jacket on an installment plan. The plan has an
administration fee of $30 and requires the customer to pay off the purchase using 12 equal
monthly payments. The jacket costs $269 before taxes.
(a) How much will she have to pay when she initially picks up the jacket?
(b) How much are her monthly payments?
(c) How much does she end up paying for the jacket on the installment plan?
3. A local electronics store offers an installment plan so that people can purchase entertainment
systems (i.e. flat screen television, television stand, surround-sound system). The system is
paid off with through 18 equal monthly payments. The administration fee is $49. Praveen is
going to buy a $1999 entertainment system (before taxes) using the installment plan.
(a) How much will he have to pay when he initially picks up the system?
(b) How much are his monthly payments?
(c) If he purchased the system with cash, determine the total cost, including tax.
(d) How much more did Praveen have to pay on the installment plan compared to paying
cash? Does this seem reasonable?
4. Andrew is interested in buying a $1299 computer using a store’s installment plan.
(a) How much tax will be charged on this purchase?
(b) If the store requires an initial payment of $218.87, how much will Andrew pay as an
administration fee?
(c) If Andrew has monthly payments of $108.25, then is he making payments for 12 or 18
months?
(d) How much will Andrew end up paying for the computer if he is using the store’s
installment plan?
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5. Monique is interested in buying a $749 stove using a department store’s installment plan.
(a) How much tax will be charged on this purchase?
(b) If the store requires an initial payment of $127.37, how much will Monique pay as an
administration fee?
(c) If Monique has monthly payments of $41.61, then how long will it take to pay off the
purchase?
6. Andre is going to use a store’s installment plan to purchase a $1449 bedroom set.
(a) How much tax will be charged on this purchase?
(b) If the store requires an initial payment of $223.37, how much will Andrew pay as an
administration fee?
(c) How much will Andre end up paying for the bedroom set if he is using the store’s
installment plan?
(d) If Andre has to make 18 equal monthly payments to pay off the purchase, then how much
are his monthly payments?
7. A matching dryer and washing machine combination sells for $1349, before taxes. Jeff
purchases the combination and initially pays a $49 administration fee and taxes at the time of
purchase. To pay off the purchase, he has to make 20 equal monthly payments of $67.45.
(a) If he had paid cash for the washer/dryer combination, what would the total price,
including taxes, have been?
(b) How much does Jeff have to pay at the time of purchase using the installment plan?
(c) What is the total cost of paying using the installment plan?
(d) How much more does it cost to pay using the installment plan?
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8. A matching refrigerator stove dishwasher combination sells for $1849, before taxes. Pamela
purchases the combination and initially pays a $39 administration fee and taxes at the time of
purchase. To pay off the purchase, she has to make 18 equal monthly payments of $102.72.
(a) If she had paid cash for the combination, what would the total price, including taxes, have
been?
(b) How much does Pamela have to pay at the time of purchase using the installment plan?
(c) What is the total cost of paying using the installment plan?
(d) How much more does it cost to pay using the installment plan?
9. Assuming that someone makes their monthly payments on time, generally how much more
does it cost to use an installment plan compared to paying with cash?
10. (a) What are the advantages to using an installment plan?
(b) What are the disadvantages to using an installment plan?
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Answers:
1. (a) $155.87
(b) $74.91
(c) $1054.87
2. (a) $64.97
(b) $22.42
(c) $333.97
3. (a)
(b)
(c)
(d)
$308.87
$111.06
$2258.87
$49, seems reasonable
4. (a) $168.87
(b) $50
(c) 12 months
(d) $1517.87
5. (a) $97.37
(b) $30
(c) 18 months
6. (a)
(b)
(c)
(d)
$188.37
$35
$1672.37
$80.50
7. (a) $1524.37
(b) $224.37
(c) $1573.37
(d) $49
8. (a)
(b)
(c)
(d)
$2089.37
$279.37
$2128.37
$39
9. cost of the administration fee
10. (a) minimal fee, receive item immediately, reasonable monthly payments, no interest if
monthly payments are made on time
(b) must budget for payments, interest will be charged for late payments
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No Payments for One Year
When you buy things we tend to rely on cash, debit cards, or credit cards. When purchasing
more expensive items (e.g. electronics, furniture, jewelry,…) it can be difficult to raise the cash
in a short period of time. Relying on credit cards with these types of purchases is not always a
good bet. If you can’t pay off the balance on the credit card quickly, you can end up paying too
much in interest. In these cases, you may want to consider other payment options.
Many furniture and appliance stores offer no payments for 6 months, 1 year, 18 months, or 2
years. These no payment for a specified time options are very appealing because you
immediately receive the item and only initially pay the taxes and an administration fee. You
have to pay the remainder of the money before a specified time. No interest is charged if you
pay before this time. If, however, you don’t pay before the date, they charge you interest (at a
high rate) from the time of the purchase. For example, if you buy an item with a no payment for
two years option and don’t pay fully until 2 years and 1 day after the purchase date, then you are
required to pay 2 years of interest. Paying it off late is very costly. This is a big problem for a
lot of people.
Think about the following before you consider the no payments for a specified time option. If
you can’t afford to fully pay for the item on the purchase date, how likely is it that you will be
able to pay for it fully in 6 months, 1 year, 18 months, or 2 years time?
Example:
Marcus wants to purchase a $799 computer (before taxes) using the no payment for 1 year
option. The store informs him that there is $39 administration fee for using this option and that
he will receive a bill for $1022.72 if he doesn’t pay it off before the year is up.
(a) If someone purchased the same computer using cash, how much would he/she have to pay?
(b) How much would Marcus have to pay on the purchase date?
(c) If Marcus pays everything off before the one year is up, how much more expensive was it to
use the no payment for 1 year option compared to a cash purchase? Does this seem
reasonable?
(d) If Marcus pays everything off after the one year is up, how much more expensive was it to
use the no payment for I year option compared to a cash purchase? Does this seem
reasonable?
Answers:
(a) Take 13% of 799
0.13 × 799 = $103.87
Add the tax to the ticketed price.
103.87 + 799 = $902.87
If someone uses cash, he/she will pay $902.87 for the computer.
(b) He has to pay the tax and the administration fee.
103.87 + 39 = 142.87
Marcus will have to pay $142.87 on the purchase date.
(c) He has to pay an additional $39. This seems to be a reasonable charge.
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(d) Take the total paid (initial payment and the final bill) and subtract the cash price.
(142.87 + 1022.72) - 902.97 = 262.62
He has to pay an additional $262.62. That seems pretty high.
Questions:
1. Tanya is going to purchase a bedroom set using the no payment for 2 years option. The set
costs $1699 before taxes. The store informs her that there is $49.95 administration fee for
using this option and that she will receive a bill for $2783.64 if she doesn’t pay it off before
the two years is up.
(a) If someone purchased the same bedroom set using cash, how much would he/she have to
pay?
(b) How much would Tanya have to pay on the purchase date?
(c) How much will Tanya pay in total if she pays everything off before the two years is up?
(d) If Tanya pays everything off before the two years is up, how much more expensive was it
to use the no payment for 2 years option compared to a cash purchase?
(e) How much will Tanya pay in total if she pays everything off after the two years is up?
(f) If Tanya pays everything off after the two years is up, how much more expensive was it
to use the no payment for 2 years option compared to a cash purchase?
2. Himani wants to purchase a $699 flat screen television (before taxes) using a store’s no
payment for 1 year purchasing option. She will have to pay a $39.95 administration fee
when using this option. If she does not pay it off within the year, she will receive a bill for
$894.72.
(a) If someone purchased the same television using cash, how much would he/she have to
pay?
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(b) How much would Himani have to pay on the purchase date?
(c) How much will Himani pay in total if she pays everything off before the one year is up?
(d) If Himani pays everything off before the one year is up, how much more expensive was it
to use the no payment for one year option compared to a cash purchase?
(e) How much will Himani pay in total if she pays everything off after the one year is up?
(f) If Himani pays everything off after the one year is up, how much more expensive was it
to use the no payment for one year option compared to a cash purchase?
3. Paul purchases a $999 computer (before taxes) using an electronics store’s no payment for 18
months purchasing option. If he doe not pay it off within the 18 months, he will receive a
bill for $1446.71. The administration fee for this purchasing option is $44.99.
(a) What is the total amount paid at the time of purchase?
(b) What is the total cost if the item is paid off before the 18 months is up?
(c) What is the total cost if the item is paid off after the 18 months is up?
4. Chris purchases a $849 leather sofa (before taxes) using a store’s no payment for 6 months
purchasing option. If he doe not pay it off within the 6 months, he will receive a bill for
$960.53. The administration fee for this purchasing option is $37.99.
(a) What is the total amount paid at the time of purchase?
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(b) What is the total cost if the item is paid off before the 6 months is up?
(c) What is the total cost if the item is paid off after the 6 months is up?
5. What are your feelings about the no payment for a specified time option? Would you use
this payment option?
6. Do you think stores really want you to pay the item off before the specified time? Explain.
7. When you consider some of the new payment options you have been exposed to (layaways,
rent-to-own, installment, no payments for a specified time), which is the best for you and
which is the worst? Explain your reasoning.
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Answers:
1. (a)
(b)
(c)
(d)
(e)
(f)
$1919.87
$270.82
$1969.82
$49.95
$3054.46
$1134.59
2. (a)
(b)
(c)
(d)
(e)
(f)
$789.87
$130.82
$829.82
$39.95
$1025.54
$235.67
3. (a) $174.86
(b) $1173.86
(c) $1621.57
4. (a) $148.36
(b) $997.36
(c) $1109.19
5. Answers will vary.
6. Answers will vary.
7. Answers will vary.
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Putting It Together
Sometimes it is difficult to save for big-ticket items especially if you need them immediately.
You have learned about a variety of payment options (layaways, rent-to-own, installment plans,
and no payments for a specified time). This activity sheet is designed so that you can review
these payment options.
Questions:
1. Ryan is going to buy a living room set that costs $1499 before taxes. He is going to purchase
it using the store’s installment plan. The plan’s administration fee is $39.95. He plans on
making 18 equal monthly payments.
(a) How much will he have to pay when he initially picks up the living room set?
(b) How much are his monthly payments?
(c) How much does he end up paying for the living room set on the installment plan?
(d) If he had initially made the full purchase using cash, what would be the total cost?
2. Hillary purchases a $549 kitchen table and chairs (before taxes) using the store’s no payment
for one year purchasing option. If she doe not pay it off within the one year, she will receive
a bill for $702.72. The administration fee for this purchasing option is $39.95.
(a) What is the total amount paid at the time of purchase?
(b) What is the total cost if the item is paid off before the one year is up?
(c) What is the total cost if the item is paid off after the one year is up?
(d) If she had initially made the full purchase using cash, what would be the total cost?
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3. Nasrin needs to purchase a washing machine. She’s going to use a rent-to-own agency. The
$529 machine (before taxes) could be hers for 12 monthly payments of $82.
(a) If Nasrin decided to pay immediately for the washer without using the rent-to-own
option, what would be the total cash price, including taxes?
(b) If she rented the washer for the full twelve months, how much would she have paid in
total?
(c) How much more did she pay using the rent-to-own option rather than paying with cash?
4. Suzette finds a necklace that she really loves. It costs $169.99 before taxes. She is worried
that this particular necklace will be sold before she can afford to buy it. She decides to use
the store’s layaway program. She will have to put 20% down and lay away the necklace for
four months.
(a) What is the cost of the necklace after taxes?
(b) How much of a deposit does she put down?
(c) How much does Suzette have to pay when she picks up the necklace?
5. Manish is interested in buying a $439 dishwasher using a department store’s installment plan.
(a) How much tax will be charged on this purchase?
(b) If the store requires an initial payment of $97.02, how much will Manish pay as an
administration fee?
(c) If Manish has monthly payments of $24.39, then how long will it take to pay off the
purchase?
(d) How much did Manish pay in total for dishwasher using the installment plan?
(e) If he had initially made the full purchase using cash, what would be the total cost?
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6. Paulette purchases a $2299 bedroom set (before taxes) using a store’s no payment for two
years purchasing option. If she doe not pay it off within the two years months, she will
receive a bill for $3766.68. The administration fee for this purchasing option is $49.95.
(a) What is the total amount paid at the time of purchase?
(b) What is the total cost if the item is paid off before the two years is up?
(c) What is the total cost if the item is paid off after the two years is up?
(d) If she had initially made the full purchase using cash, what would be the total cost?
7. A $249 video camera can be rented from a rent-to own agency for 12 monthly payments of
$44.88. How much more would you pay using the rent-to-own option rather than paying
with cash?
8. Kendrick wants to buy a leather jacket. It costs $269.95 before taxes. He decides to use the
store’s layaway program. He will have to put 15% down and lay away the jacket for three
months.
(a) What is the cost of the jacket after taxes?
(b) How much of a deposit does he put down?
(c) How much does Kendrick have to pay when he picks up the jacket?
(d) Did the layaway plan cost him any more money than if he had originally made the full
purchase with cash?
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Answers:
1. (a)
(b)
(c)
(d)
$234.82
$83.28
$1733.82
$1693.87
2. (a)
(b)
(c)
(d)
$111.32
$660.32
$814.04
$620.37
3. (a) $597.77
(b) $984.00
(c) $386.23
4. (a) $192.09
(b) $38.42
(c) $153.67
5. (a)
(b)
(c)
(d)
(e)
$57.07
$39.95
18 months
$536.02
$496.07
6. (a)
(b)
(c)
(d)
$348.82
$2647.82
$4115.50
$2597.87
7. $289.56
8. (a)
(b)
(c)
(d)
$305.04
$45.76
$259.28
no
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Understanding Your Passbook
It is important to be able to read your passbook to understand where your money is going. It is
one way to monitor whether you (and your partner) are following the budget that you laid out.
The passbook is a record of your deposits and withdrawals. Specific codes are used to describe
the types of deposits and withdrawals that you used. These codes are usually found on the inside
back cover of the passbook. A few of the more common codes are listed below. You will need
these codes to complete the questions that follow.
Symbol:
ABM - Automated Banking Machine
CHQ - Cheque
DEP - Deposit
INS - Insurance
INT - Interest
LNP - Loan Payment
MTG - Mortgage Payment
ODI - Overdraft Interest
PAY - Payroll Deposit
PSP - Point of Sale Purchase (Debit Card)
RSP - RSP Contribution (RRSP, RESP)
SC - Service Charge
SDB - Security Deposit Box Rental
WD - Withdrawal
You may find that the codes used in your own passbook are different from the ones used here.
That’s because different banks use different codes.
Questions:
1. Examine the last page in Tom’s passbook.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
NSSAL
©2008
Date
Item
OCT 14
PAY
OCT 15
ABM
OCT 16
PSP
SOBEYS
OCT 17
PSP
OCT 21
PSP
OCT 22
DEP
OCT 24
PSP
OCT 29
PAY
OCT 29
ABM
OCT 30
CHQ
OCT 31
SC
Withdrawal Description
Deposit Description
Balance
HRM
1453.26
704.90
60.00
1393.26
127.46
1265.80
HOME HARDWARE
25.81
1239.99
SOBEYS
45.02
ZELLERS - DART.
CHQ#145
1194.97
CASH
120.00
HRM
704.90
35.97
1314.97
1279.00
1983.90
80.00
1903.90
470.00
1433.90
4.65
1429.25
On what dates was Tom paid?
What type of transaction did Tom make on October 24?
What was the balance at the end of the month?
How much did Tom have to pay in service charges?
Which of the withdrawals likely represents his share of his
apartment rental?
How much did he spent at Zellers between the 14th and 31st?
How many times between Oct 14 and Oct 31, did Tom use
his debit card to make a purchase?
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C. D. Pilmer
(h)
(i)
(j)
(k)
(l)
A friend owed Tom some money. The friend paid him back
in cash. Tom put the money in his account. When did he
deposit the money?
Based on the passbook, does Tom own a car?
How much money was in the account on October 20?
How much did Tom spent on groceries between October 14
and October 31?
How much cash did Tom take from the account between
October 14 and October 31?
2. Examine the last page in Tylena’s passbook.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
NSSAL
©2008
Date
Item
Withdrawal Description
AUG 9
PSP
CORA’S BEDFORD
13.41
Deposit Description
AUG 11
PAY
AUG 11
PSP
IRVING MAINWAY
40.00
Balance
2153.76
IWK
936.50
3090.26
3050.26
AUG 11
ABM
AUG 13
CHQ
80.00
2970.26
AUG 14
PSP
ROOTS HALIFAX
56.72
3013.54
AUG 17
PSP
BEDFORD ESSO
45.00
2968.54
AUG 17
RSP
SCOTIA RRSP
AUG 25
PAY
AUG 28
INS
IA PACIFIC
123.15
AUG 28
LNS
TOYOTA LOANS
417.34
3214.55
AUG 31
SC
4.50
3210.05
CHQ#453
100.00
150.00
3070.26
2818.54
IWK
936.50
3755.04
3631.89
On what dates was Tylena paid?
What type of transaction did she make on August 28?
What type of transaction did she make on August 9?
How much does she contribute to her registered retirement
savings plan each month??
How much did Tylena have to pay in service charges?
What are her monthly payments on her car loan?
She received a cheque for her birthday and deposited it in
her account. How much was the cheque worth?
How did Tylena pay for her gas purchase at the Bedford
Esso?
Based on her passbook, does Tylena live at home with her
parents or does she have her own place?
On what date did she withdraw money from the automated
banking machine?
How much did she spent using her debit card between
August 9 and August 31?
How much money was in her account on August 26?
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C. D. Pilmer
3. Examine the last two pages in Omar’s passbook.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
NSSAL
©2008
Date
Item
APR 31
SC
Withdrawal Description
Deposit Description
MAY 2
PSP
MAY 4
PAY
MAY 6
PSP
MAY 9
DEP
MAY 11
ABM
MAY 12
PSP
MAY 13
MAY 13
MAY 14
DEP
MAY 17
PSP
MAY 18
PAY
Date
Item
MAY 18
ABM
MAY 19
PSP
SUPERSTORE
MAY 19
PSP
WILSON’S GAS
MAY 21
INS
MUTUAL
38.25
MAY 23
DEP
MAY 24
INS
WAWANESA
98.42
3608.20
MAY 25
CHQ
CHQ#125
42.56
3565.64
MAY 25
CHQ
CHQ#126
165.00
3400.64
MAY 27
MTG
#451278
868.63
2532.01
MAY 28
LNS
TD LOANS
267.45
2264.56
MAY 31
SC
JUN 1
PAY
8.50
TRURO ESSO
45.00
2111.41
HRSB
SUPERSTORE
Balance
2156.41
987.32
198.83
3098.73
2899.90
CASH
120.00
3019.90
140.00
2879.90
WILSON”S GAS
55.00
2824.90
PSP
CANADIAN TIRE
37.23
2787.67
RSP
RESP
70.00
2717.67
CASH
260.00
HRSB
987.32
MACPHEE PONTIAC 98.65
Withdrawal Description
2977.67
2879.02
Deposit Description
3866.34
Balance
60.00
3806.34
211.47
3594.87
50.00
3544.87
3506.62
CASH
200.00
6.50
3706.62
2258.06
HRSB
987.32
3245.38
How much money was in the account by the end of April?
What type of transaction occurred on May 9?
MacPhee Pontiac serviced Omar’s car. How much did he pay?
Omar works for the Halifax Regional School Board. How much
money did he receive from them in May?
Omar works on the weekends for a friend who pays him cash.
Based on the passbook, how much money did he make in total
working for his friend?
Omar has a car loan with the Toronto Dominion Bank. On what
date was his loan payment made?
What type of transaction was made on May 21?
How much money was spent on groceries during the month of
May?
How many times during a month does Omar make a mortgage
payment?
How much money is in the account on May 26?
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C. D. Pilmer
4. Miranda is concerned that someone may have duplicated her debit card and stolen her PIN.
She had her passbook updated.
Date
Item
Withdrawal Description
NOV 12
PSP
PONDEROSA
Deposit Description
Balance
NOV 13
PAY
NSCC
1464.40
NOV 15
ABM
400.00
NOV 16
ABM
400.00
664.40
NOV 17
ABM
400.00
264.40
NOV 19
PSP
FOOTLOCKER
76.72
187.68
NOV 19
PSP
OLD TRIANGLE
38.76
148.92
36.48
632.88
831.52
1064.40
(a) Should she be concerned? How did you reach this conclusion?
(b) What would you advice her to do?
NSSAL
©2008
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C. D. Pilmer
Answers:
1. (a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
Oct. 14 and Oct. 29
Point of Sale Purchase
$1429.25
$4.65
Cheque on Oct. 30
$35.97
4
Oct. 22
no
$1239.99
$172.48
$140.00
2. (a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
Aug. 11 and Aug. 25
Loan Payment
Point of Sale Purchase
$150.00
$4.50
$417.34
$100
$45.00
She lives with her parents.
Aug. 11
$155.13
$3755.04
3. (a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
$2156.41
Deposit
$98.65
$1974.64
$580.00
May 28
Insurance Payment
$410.30
once a month
$3400.64
4. (a) She should be concerned. There are three withdrawals of $400 that occur three days in a
row.
(b) She should immediately contact her bank. They will stop all electronic and teller
withdrawals until they can issue her a new card and she can select a new PIN.
NSSAL
©2008
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C. D. Pilmer