Topic 1 Consumer Arithmetic (U1)

Question 1

What does percent mean?

Answer 1

Out of 100, shown as %

Question 2

How do you change something to a percentage?

Answer 2

Multiply by 100%

Question 3

What is a salary?

Answer 3

An annual set amount earned by professionals

Question 4

What is a wage?

Answer 4

An hourly rate which can include double time, overtime, and etc.

Question 5

What is a retainer?

Answer 5

Is an amount of money paid regardless of the total number or amount of sales.

Question 6

What is the GST?

Answer 6

10% of the pre-GST price

Question 7

What is the GST-inclusive price?

Answer 7

100% + 10%

= 110%

Question 8

What is the pre-GST price?

Answer 8

GST - inclusive price/ 1.1

Question 9

What is a tax deduction?

Answer 9

An amount of money deducted from your gross wages before the tax is calculated.

Question 10

What are tax deductions allowed for?

Answer 10

Equipment related to your job.

Question 11

How is taxable income calculated?

Answer 11

gross wage - tax deductions

Question 12

What is simple interest?

Answer 12

The amount of money paid or charged when investing or borrowing investment.

Question 13

What is the formula for simple interest?

Answer 13

I= Pni/100

Question 14

What do the letters stand for in the interest formulas?

Answer 14

I= Interest
n= number of periods (years)
P= Principal 
I= interest rate p.a
A= Account balance

Question 15

To find the total amount of simple interest, what formula is used?

Answer 15

A= P + I

Question 16

What is the formula to calculate the Principal?

Answer 16

P= 100 x I/ n x i

Question 17

What is the formula to calculate the time period?

Answer 17

n= 100 x I/ P x i

Question 18

What is the formula to calculate the interest rate?

Answer 18

i= 100 x I/ P x n

Question 19

What is the formula for compound interest?

Answer 19

A= P (1 + I/100)n

to the power of n

Question 20

How do you calculate the profit?

Answer 20

SP = CP

SP= Selling price
CP= Cost price

Question 21

How do you calculate the loss?

Answer 21

CP - SP

SP= Selling price
CP= Cost price

Question 22

How do you calculate the percentage profit

Answer 22

Profit OR loss/ CP x 100

SP= Selling price
CP= Cost price

Question 23

How do you calculate the markup?

Answer 23

SP= (100 + mu)% of CP

mu= markup

Question 24

How do you calculate the percentage markup?

Answer 24

mu/ CP x 100

mu= markup

Question 25

What is depreciation?

Answer 25

When products lose value over time (e.g. cars)

Question 26

What is appreciation?

Answer 26

The value of an item increases over time (e.g. antiques, gold)

Question 27

What is inflation?

Answer 27

When prices rise over a period of time

Question 28

What is CPI?

Why is it used?

Answer 28

(Consumer Price index)

To measure inflation across the economy.