Consumer Arithmetic

Front

What is consumer arithmetic?

Back

Consumer arithmetic involves the mathematical calculations used in everyday financial transactions, such as budgeting, calculating discounts, and understanding pay.

Front

How do you calculate sales commission?

Back

Sales commission is calculated by multiplying the total sales amount by the commission rate. For example, for $4,500 at a 5% rate, the commission is $4,500 x 0.05 = $225.

Front

What is gross pay?

Back

Gross pay is the total amount of earnings before any deductions, such as taxes or retirement contributions.

Front

What is overtime pay?

Back

Overtime pay is the additional money earned for hours worked beyond the regular work schedule, typically at a higher rate.

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount rate. For example, a 10% discount on $240 is $240 x 0.10 = $24.

Front

What is net pay?

Back

Net pay is the amount of money an employee takes home after all deductions have been made from gross pay.

Front

What does 'time-and-a-half' mean?

Back

Time-and-a-half refers to the pay rate for overtime hours, which is 1.5 times the regular hourly wage.

Front

If Alice worked 52 hours at $9.35 per hour for the first 40 hours, how much does she earn for those hours?

Back

Alice earns $9.35 x 40 = $374.00 for the first 40 hours.

Front

How much does Alice earn for the additional 12 hours at time-and-a-half?

Back

For the additional 12 hours, Alice earns $9.35 x 1.5 x 12 = $168.30.

Front

What is the total pay for Alice's 52 hours of work?

Back

Alice's total pay is $374.00 (first 40 hours) + $168.30 (overtime) = $542.30.