FINANCE AND ARITHMETIC MTH-1101-3 Scored Activity 1 Mark: Date corrected: Corrector s signature: Student s Identification Name: Address: Email: Telephone No.: Date sent:
MTH-1101-3 FINANCE AND ARITHMETIC This scored activity was produced by the Société de formation à distance des commissions scolaires du Québec. Project Coordinator: Author: Illustration: Content Revision: Pedagogical Revision Translation: Proofreading: Desktop Publishing: Graphical Layout: Ronald Côté (SOFAD) André Dumas Marc Tellier Gilles Gacon Alain Bombardier Louise Lachapelle Claudia de Fulviis Claudia de Fulviis Serge Mercier Alain Lemay Despite the following statement, SOFAD authorizes adult education centres using the related learning guide to reproduce this scored activity. (SOFAD) All rights for translation and adaptation, in whole or in part, reserved for all countries. Any reproduction by mechanical or electronic means, including micro-reproduction, is forbidden without the written permission of a duly authorized representative of the Société de formation à distance des commissions scolaires du Québec (SOFAD). 2 SOFAD
SCORED ACTIVITY 1 Scored Activity 1 deals with learning situations 1 and 2 of the guide entitled Finance and Arithmetic. Once you have completed this activity, send it to your tutor together with any related documents. Most education centres reuire that you obtain an average of 60% or more in order to write the official examination. Instructions Fill in the Student s Identification section. Carefully read each uestion before answering it. Write your answers in the appropriate spaces and give complete solutions, as applicable. The weighting for each uestion is indicated to the left of each number, in parentheses. You may use a calculator. Note: As much as possible, show your calculations in detail. SOFAD 3
MTH-1101-3 FINANCE AND ARITHMETIC Scored Activity 1 Points 1. Michel works 40 hours a week for $18.75 an hour. For a long time, he has dreamed of going to the Magdalen Islands. To be able to do this, he must save about $2000.00 over a period of one year. In this activity, you are reuired to analyze Michel s financial situation to determine whether he can make his dream come true. Examine the following information before answering the uestions. Source deductions Description % QPP Quebec Pension Plan EI Employment Insurance QPIP Quebec Parental Insurance Plan RPP Registered Pension Plan 4.95% 1.36% 0.537% 3.25% Union dues 0.4% RRSP Registered Retirement Savings Plan 2.0% Tax rate - Quebec: 16% - Federal: 15% 4 SOFAD
SCORED ACTIVITY 1 a) Fill in Michel s weekly pay slip by following the steps below. EMPLOYER Inc. Employee Michel Dupont 100 Main St. Montreal, Quebec J9Q 1A0 Pay period Week of 2010-11-01 Number of hours Hourly rate Gross salary Net salary Taxable salary 40 $18.75 DEDUCTIONS QPP Union dues QPIP RPP EI Provincial tax RRSP Federal tax b) Calculate the gross weekly salary. c) Calculate the Quebec Pension Plan (QPP) contribution. Note: Before calculating the amount of the deduction, subtract the annual exemption of $3500 from the gross salary. d) Calculate the Employment Insurance (EI) premium. e) Calculate the Quebec Parental Insurance Plan (QPIP) premium. SOFAD 5
MTH-1101-3 FINANCE AND ARITHMETIC f) Calculate the Registered Retirement Savings Plan (RRSP) contribution. g) Calculate the union dues. h) Calculate the Registered Pension Plan (RPP) contribution. i) Calculate the taxable income. Write the seuence of operations. j) Calculate the source deduction for the Quebec tax. k) Calculate the source deduction for the federal tax. l) Calculate the net weekly salary. 6 SOFAD
SCORED ACTIVITY 1 m) Calculate the net annual salary. Round the result to the nearest thousand. (2) n) What percentage of the gross salary goes to deductions? (10) o) What is the total weekly amount of deductions (employer s share and employee s share) remitted by the company to the two governments? Employee s share based on gross salary Employer s share based on employee s gross salary QPP 4.95% 4.95% QPIP 0.537% 0.708% EI 1.36% 1.4 times the employee s amount SOFAD 7
MTH-1101-3 FINANCE AND ARITHMETIC 2. The following table shows Michel s monthly and weekly expenses. Michel s monthly and weekly expenses Expenses Amounts ($) Rent (monthly) 690.00 Tenant s insurance (monthly) 18.63 Electricity (monthly) 68.86 Telephone, Cable, Internet (monthly) 92.32 Transportation (monthly) 97.00 Groceries (weekly) 110.00 Personal expenses (weekly) 40.00 (7) a) Calculate Michel s total annual expenses in the table below. Round the result to the nearest hundred. Michel s annual expenses Expenses Annual amount ($) Rent Tenant s insurance Electricity Telephone, Cable, Internet Transportation Groceries Personal expenses Total 8 SOFAD
SCORED ACTIVITY 1 b) What percentage of Michel s net salary goes towards rent? Round the result to the nearest unit. c) What approximate fraction of Michel s expenses goes towards food? Express the fraction using integers. d) Unless he has unexpected expenses, is Michel able to take his dream trip? State why. (3) 3. Mireille pays her taxes late and risks paying a penalty of 8.5%, or $364.28 more. How much are her taxes? Round to the nearest hundredth. (3) 4. Is the following euality correct? Why? 266 665 = 2 5 (3) 5. Given that 4 4 kilograms (kg) of salt are eually divided into 8 boxes, how much salt is in one 5 box? Write your answer as an irreducible fraction and as a decimal. SOFAD 9
MTH-1101-3 FINANCE AND ARITHMETIC (3) 6. Arrange the following fractions in decreasing order. Use the concept of the GCD in your solution. 5 8, 5 2, 7 10, 4 5, 17 20, 3 4 (3) 7. Do the following operation. Simplify if needed. 1 3 5 4 3 10 5 2 3 5 6 70 3 + + 8 + = (3) 8. Do the following division. Simplify if needed. = 4 2 5 3 3 10 (3) 9. Do the following multiplication. Simplify if needed. 42 5 = 5 5 6 2 4 7 11 42 14 33 21 54 (3) 10. Which is longer: three-uarters of two-thirds of an hour or two-thirds of three-uarters of an hour? 10 SOFAD
SCORED ACTIVITY 1 11. A train travels at a constant speed for 1 hour and covers 100 kilometres. At what speed must it travel in order to cover this distance in 50 minutes? (5) a) Complete the following table. Speed (km/h) Time (min) 100 80 60 50 40 (5) b) What type of proportionality relationship is involved: direct or inverse? 12. A type of bronze has the following composition: 83% copper, 15% tin, 1.5% zinc and 0.5% lead. This bronze is used to make a part weighing 20 kilograms (kg). (8) a) How much of each metal must be melted, given that the machining loss is estimated to be 2 of the initial weight of each metal? If possible, round the results to the nearest 7 thousandth. (4) b) Express the loss as a percentage. Round the result to the nearest tenth. (5) 13. An amount of money is shared among three people. The first receives 1 of the amount, the 4 second, 2 and the third, $200.00. What is the total amount that was shared? 3 SOFAD 11
MTH-1101-3 FINANCE AND ARITHMETIC 14. A merchant buys 2000 plastic bottles at $4.80 a dozen. He resells them for $70.00 per 100 bottles, taxes included. (4) a) What is his gross proft, given that 20 of the bottles were damaged? (4) b) Write the merchant s gross profit in percentage form, and round the result to the nearest tenth. (6) c) Write the merchant s net profit in percentage form. 12 SOFAD
SCORED ACTIVITY 1 Review of Operational Competencies What is an operational competency? An operational competency is not related to any specific subject, but can be used in all subjects. For example, the competency Adopts effective work methods is acuired to different degrees in all subjects, and not in any subject in particular. However, it is closely related to the subject-specific competencies (mathematics, science, English, history, etc.) since it is used to develop them to varying extents even though you may not be aware of this. There are several operational competencies. The following two are developed in this course: To communicate and to reason logically. To communicate In light of the learning situations you have just completed, indicate your ability to interpret and convey the following information. Subject of communication Information Yes In part No Symbolic language - Identifying abbreviations such as EI, QPIP, QPP - Meaning of GST and QST - Meaning of % Vocabulary - Distinguishing between gross salary and net salary - Meaning of source deduction - Meaning of rate - Meaning of tax rate - Meaning of percentage - Distinguishing among fractions, mixed numbers and fractional expressions - Meaning of cross product - Meaning of euivalent fraction Calculations - Adding decimals - Subtracting decimals - Multiplying decimals - Dividing decimals - Percentage of a number and a fraction - Adding fractions - Subtracting fractions - Multiplying fractions - Dividing fractions - Determining euivalent fractions - Applying the cross product - Identifying a direct proportion - Identifying an inverse proportion SOFAD 13
MTH-1101-3 FINANCE AND ARITHMETIC Production - Making a monthly budget To reason logically In light of the learning situations you have just completed, indicate your ability to perform the following operations. Operations Yes In part No - Using negative numbers in real-life situations - Using percentages in real-life situations - Placing amounts into the correct categories (income and expenses) - Checking the plausibility of calculations - Selecting the appropriate information before doing a calculation - Determining the magnitude of a fraction in relation to other fractions - Estimating the magnitude of a result by rounding it before calculating its exact value 14 SOFAD
Student s uestions
Tutor s comments 1927-07 May 2013