(Test Bank) Contemporary Business Mathematics with Canadian Applications, Canadian Edition

Hummelbrunner,Coombs, 12

Math & Statistics

Test Bank

12th Edition

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Test Bank for Contemporary Business Mathematics with Canadian Applications, Canadian Edition, The downloadable file consists of 834 pages, and the total size of the file is 29.72 MB. Purchase now only for highly discounted price.

Author(s): Hummelbrunner, Coombs

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Study Note Preview

1 Copyright © 2021 Pearson Canada, Inc. Contemporary Business Mathematics, 12e (Hummelbrunner/Coombs) Chapter 1 Review of Arithmetic 1) Simplify: (28 - 4)/3 Answer: (28 - 4)/3 = 24/3 = 8 Diff: 1 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 2) Simplify: 8 + 6 ∗ 2 Answer: 8 + 12 = 20 Diff: 1 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 3) Simplify: 5(4 + 3) Answer: 5 ∗ 7 = 35 Diff: 1 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 4) Simplify: Answer: 5/20 = .25 Diff: 1 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 5) Simplify: Answer: 40/20 = 2 Diff: 1 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 6) Simplify: 9(8 - 5) + 5(6 + 4) Answer: 9 ∗ 3 + 5 ∗ 10 = 27 + 50 = 77 Diff: 1 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 7) Evaluate: Answer: 268/(4400 ∗ .4262295) = 268/1875.4098 = .1429021 Diff: 2 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 2 Copyright © 2021 Pearson Canada, Inc. 8) Evaluate and round to 3 decimal places: 125(6 + 0.35 ∗ 142/678) Answer: 125 ∗ (6 + 0.35 ∗ 0.2094395) = 125 ∗ (6 + 0.0733038) = 125 ∗ (6.0733038) = 759.163 Diff: 2 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 9) Evaluate: 400(1 + .10 ∗ 100/365) Answer: 400 ∗ (1 + .10 ∗ .2739726) = 400 ∗ (1 + .02739726) = 400 ∗ (1.02739726) = 410.959 Diff: 2 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 10) Evaluate and round to one decimal place: 9210(5 - 1.38 ∗ 169/420) Answer: 9210 ∗ (5 - 1.38 ∗ 0.40238095) = 9210 ∗ (5 - 0.5552857) = 9210(4.444714) = 40,935.8 Diff: 2 Type: SA Page Ref: 5-6 Topic: 1.1 Basics of Arithmetic Objective: 1-1: Simplify arithmetic expressions using the basic order of operations. 11) Evaluate: Answer: 2424/(1 + .2 ∗ .4547945) = 2424/(1 + .0909589) = 2424/1.0909589 = 2221.899 Diff: 2 Type: SA Page Ref: 6-11 Topic: 1.2 Fractions Objective: 1-2: Determine equivalent fractions, and convert fractions to decimals, decimals to percents, and vice versa. 12) Evaluate and round to three decimal places: Answer: 3140/(2 + 0.35 * 0.2123288) = 3140/(2 + 0.0743151) = 2910/2.074315068 = 1513.753 Diff: 2 Type: SA Page Ref: 7-13 Topic: 1.2 Fractions Objective: 1-2: Determine equivalent fractions, and convert fractions to decimals, decimals to percents, and vice versa. 13) Evaluate: Answer: 5000/(1 + .1 ∗ .5) = 5000/(1 + 0.05 ) = 5000/1.05 = 4761.90 Diff: 2 Type: SA Page Ref: 6-11 Topic: 1.2 Fractions Objective: 1-2: Determine equivalent fractions, and convert fractions to decimals, decimals to percents, and vice versa. 3 Copyright © 2021 Pearson Canada, Inc. 14) Spade Realty sold lots for $23 240 per hectare. What is the total sales value if the lot sizes, in hectares, were 2, 3, 4? Answer: 23240 ∗ ( + 3 + 4) = 23240 ∗ (2 10/20 + 3 5/20 + 4 4/20) = 23240 ∗ (9 19/20) = 23240 ∗ 9.95 = $231238 Diff: 2 Type: SA Page Ref: 6-11 Topic: 1.2 Fractions Objective: 1-2: Determine equivalent fractions, and convert fractions to decimals, decimals to percents, and vice versa. 15) Three mechanics worked 15, 14, 18 hours respectively. What was the total cost of labour if the mechanics were paid $14.75 per hour? Answer: Total Hours = 15 + 14 + 18 = 15.5 + 14.75 + 18.125 = 48.375 Total cost of labor = 48.375 ∗ 14.75 = $713.53 Diff: 2 Type: SA Page Ref: 6-11 Topic: 1.2 Fractions Objective: 1-2: Determine equivalent fractions, and convert fractions to decimals, decimals to percents, and vice versa. 16) Ana, Aamir and Charlotte worked 11, 14, and 22 hours respectively. What was the total cost of labour if they were paid $18.00 per hour? Answer: Total Hours = 11 + 14 + 22 = 11.75 + 14.65 + 22.80 = 49.20 Total cost of labor = 49.20 ∗ 18.00 = $885.60 Diff: 2 Type: SA Page Ref: 7-13 Topic: 1.2 Fractions Objective: 1-2: Determine equivalent fractions, and convert fractions to decimals, decimals to percents, and vice versa. 17) A retailer returned 300 defective items to the manufacturer and received a credit for the retail price of $0.75 less a discount of 1/3 of the retail price. What was the amount of the credit received by the retailer? Answer: Retail value = 300($0.75) = $225 Credit = (1-1/3 )∗ $225 = (2/3) ∗ $225 = $150 Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 4 Copyright © 2021 Pearson Canada, Inc. 18) Complete the following inventory sheet and find the total value. Item Quantity Cost per Unit Total 1 69 $.85 2 111 16 2/3 cents 3 155 $2.75 4 350 $1.66 Answer: 1161616161669 × 0.85 = $58.65 111 × 0.16 2/3 = 330 × 0.1666667 = 18.50 155 × 2.75 = 426.25 350 × 1.66 = 581.00 $1084.40 Diff: 1 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 19) Extend each of the following and determine the total. Quantity Unit Price 48 $2.45 48 $0.83 16 $2.12 60 $1.33 Answer: Quantity Unit Price Value 48 $2.45 $117.60 48 0.83 1/8 39.90 16 2.12 33.92 60 1.33 1/6 79.90 Total: $271.32 Diff: 1 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 5 Copyright © 2021 Pearson Canada, Inc. 20) Purchases of packs of printing paper during the last accounting period were as follows: Number of items Unit price 8 $13.00 4 $12.00 15 $10.00 10 $10.50 What was the weighted average price per item? Answer: Number of items Unit price Weighted value 8 × $13.00 = 104.00 4 × $12.00 = 48.00 15 × $10.00 = 150.00 10 × $10.50 = 105.00 Total: 37 407.00 Average price was 407/37 = $11.00 Diff: 2 Type: SA Page Ref: 17-24 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 21) Purchases of an inventory item during last month were as follows: Number of items Unit price 5 $5.00 10 $8.00 8 $6.00 15 $3.00 What was the weighted average price per item? Answer: Number of items Unit price Weighted value 5 × $5.00 = 25.00 10 × 8.00 = 80.00 8 × 6.00 = 48.00 15 × 3.00 = 45.00 Total: 38 198.00 Average price was 198/38 = $5.21 Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 6 Copyright © 2021 Pearson Canada, Inc. 22) Noriko's final mark for her Financial Mathematics course was based on four tests with different weightings. Test one counted for 10% of the final grade, test two for 20%, test three for 30% and test four for 40%. If Clara received 70% on test one, 85% on test two, 64% on test three and 72% on test four, calculate her final mark. Answer: = 70(0.1) + 85(0.2) + 64(0.3) + 72(0.4) = 7 + 17 + 19.2 + 28.8 = 72 Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 23) On a trip, a motorist purchased gasoline as follows: 66 litres at 69.0 cents per litre; 69 litres at 70.5 cents per litres; 80 litres at 71.5 cents per litre; and 57 litres at 74.5 cents per litre. a) What was the average number of litres per purchase? b) What was the average cost per litre? c) If the motorist averaged 9.75 km per litre, what was her average cost of gasoline per kilometre? Answer: a) 66 + 69 + 80 + 57 = 272 Average number of litres = 272 ÷ 4 = 68 b) Average cost per litre: Total cost = 66 × 69.0 = 45.54 69 × 70.5 = 48.645 80 × 71.5 = 57.20 57 × 74.5 = 42.465 193.85 cents Average cost = 193.86 ÷ 272 = 71.27 cents c) Average cost per km = 71.27 ÷ 9.75 = 7.3097436 cents Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 24) Dorian Frump invested $12 500 in a business on January 1. She withdrew $850 on April 3, reinvested $1920 on August 1, and withdrew $700 on September 1. What is Don's average monthly investment balance for the year? Answer: Weighted investment: January 1 — March 31: 12500 × 3/12 = 3125.0000 April 1 - July 31: 11650 × 4/12 = 3883.3333 August 1 - August 31: 13570 × 1/12 = 1130.8333 September 1 - December 31: 12870 × 4/12 = 4290.0000 Average investment balance = $12429.17 Diff: 2 Type: SA Page Ref: 17-24 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 7 Copyright © 2021 Pearson Canada, Inc. 25) Tommy Hughes invested $10 000 in a business on January 1. He withdrew $1000 on March 1, reinvested $5000 on July 1, and withdrew $4000 on October 1. What is Tommy's average monthly investment balance for the year? Answer: Weighted investment: January 1 - February 28: 10000 × 2/12 = 1666.6700 March 1 - June 30: 9000 × 4/12 = 3000.0000 August 1 - August 31: 14000 × 3/12 = 3500.0000 September 1 - December 31: 10000 × 3/12 = 2500.0000 Average investment balance = $10666.67 Diff: 2 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 26) The following information is shown in your investment account for last year. The balance on January 1 was $7600.00. A withdrawal of $420.00 was made on March 1. A deposit of $1690.00 was made on May 1 and another deposit of $130.00 was made on October 1. What was the average monthly balance for the year in your account? Answer: Date Balance Months Weighted value January 1 7600 2 15 200 March 1 7180 2 14 360 May 1 8870 5 44 350 October 1 8740 3 26 220 Total: 12 100 130 Average monthly balance = 100130/12 = $8344.17 Diff: 2 Type: SA Page Ref: 17-24 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages. 27) Kevin Ash earns a semi-monthly salary of $1023.40 and works a regular workweek of 40 hours. a) What is Kevin's hourly rate of pay? b) If Kevin's gross earnings in one pay period were $1390.47, for how many hours of overtime was he paid at time and one-half of his regular pay? Answer: a) Semimonthly pay = $1023.40 Yearly salary = $24 561.60 Weekly gross pay = 24561.60 ÷ 52 = $472.34 Hourly rate = 472.34 ÷ 40 = $11.81 b) Gross pay = 1390.47 Regular pay = - 1023.40 Overtime pay = 367.07 Number of overtime hours = (367.07 ÷ 1.5) ÷ 11.81 = 20.72 hrs. Diff: 3 Type: SA Page Ref: 24-32 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 8 Copyright © 2021 Pearson Canada, Inc. 28) R.J. earns $11.70 an hour, with time-and-a-half for hours worked over 36 a week. His clock hours for a week are 10.5, 7.5, 11, 13, and 9.75. Determine his gross earnings for a week. Answer: Total hours = 10.5 + 7.5 + 11 + 13 + 9.75 = 51.75 Regular weekly earnings = 36 × $11.70 = $421.20 Overtime earnings = (51.75 - 36) × $11.70 × 1.5 = $276.41 Gross = Regular time + Overtime = $421.20 + $276.41 = $697.61 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 29) Florence Lamb is paid a commission of 10 3/4% on her net sales and is authorized to draw up to $900.00 a month. What is the amount due to Florence at the end of a month in which she drew $820.00, had sales of $14 660.00, and sales returns of $331.20? Answer: Gross sales = $14660.00 Less: returns = 331.20 Net sales = 14328.80 Gross commission = 14328.80 × .1075 = 1540.35 Less: drawings 820.00 Amount due $720.35 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 30) A sales representative selling computer parts receives a commission of 3.5% on net sales up to $15 000.00, 7% on the next $6000.00, and 9% on any further sales. If his sales for a month were $34 250.00 and sales returns were $1055.00, what was his commission for the month? Answer: Gross sales = $34250.00 Less: returns = 1055.00 Net sales = $33195.00 Commission: = .035 × 15000.00 = $525.00 = .07 × 6000.00 = 420.00 = .09 × 12195.00 = 1097.55 Total commission = $2042.55 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 9 Copyright © 2021 Pearson Canada, Inc. 31) A salesperson had gross earnings of $943.25 for last week on gross sales of $8320.00. If returns and allowances were 5.5% of gross sales, what is his rate of commission based on net sales? Answer: Net sales = (1 - .055) * 8320 = 7862.40 Commission rate = = 11.997% Diff: 3 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 32) A salesperson is paid a weekly salary of $350.00 or a commission of 14.5% of his sales, whichever is the greater. What is his earnings for a week in which his sales were a) $2480.00? b) $3780.00? Answer: a) Salary = $350.00 Commission = .145 ∗ 2480.00 = $359.60 Gross earnings = $709.60 b) Salary = $350.00 Commission = .145 ∗ 3780.00 = $548.10 Gross earnings = $898.10 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 33) Beth's annual salary is $42 120.00. Her regular work-week is 36 hours and she is paid semi-monthly. a) Calculate her gross pay period b) Calculate her hourly rate of pay c) Calculate her gross pay for a period in which she works 12 hours of overtime at time and one-half regular pay. Answer: a) = $1755.00 b) = $22.50 c) Overtime = 12 × 22.50 × 1.5 = $405.00 Gross pay = 1755.00 + 405.00 = $2160.00 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 10 Copyright © 2021 Pearson Canada, Inc. 34) Scott Rae had gross earnings of $554.30 for last week. Scott earns a base salary of $350.00 on a weekly quota of $4 500.00. If his sales for the week were $6124.00, what is his commission rate? Answer: Gross earnings = $554.30 Less: base salary = 350.00 Commission: = $204.30 Sales for week = $6124.00 Quota = 4500.00 Commission sales = $1624.00 Rate of commission = = 12.58% Diff: 3 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 35) A.J. is paid an annual salary of $41 840.00. She is paid monthly on a 40-hour work week. What is the gross pay for a pay period in which she works 9 hours overtime at time-and-a-half regular pay? Answer: Weekly pay = = 804.6154 Hourly pay = = $20.1154 Regular monthly earnings = = 3486.67 Overtime earnings = 20.1154 × 9 ∗ 1.5 = 271.56 Gross = Regular time + Overtime = 3486.66 + 271.56 = $3758.22 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 36) Corrine Davis had gross earnings of $937.50 for the week. If she receives a base salary of $664.00 on a quota of $7800.00 and a commission of 6.75% on sales exceeding the quota, what were Corrine's sales for the week? Answer: Gross earnings = 937.50 Less: base salary = 664.00 Commission: 273.50 Commission sales = = 4051.85 Sales for week = $(7800 + 4051.85) = $11 851.85 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 11 Copyright © 2021 Pearson Canada, Inc. 37) Abigail receives a commission of 4.5% on the first $1250.00 of sales during a week. On the next $4500.00 she receives a commission of 11.5%. On any additional sales, the commission rate is 13.75%. Find her gross earnings for a week during which her sales amount to $14 200.00. Answer: Commission on first $1250.00 is 0.045 × 1250.00 = 56.25 Commission on next $4500.00 is 0.115 × 4500.00 = 517.50 Commission on remainder = 0.1375 × 8450 = 1161.875 After rounding to the nearest cent, gross earnings are $1293.63. Diff: 2 Type: SA Page Ref: 24-32 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 38) Last week Dana worked 46 hours. For the regular workweek of 40 hours she is paid $12.40 per hour, and for every hour over 40 hours she is paid at time and one-half regular pay. How much did she earn last week? Answer: For the first 40 hours = 40(12.40) = 496.00 For the next 6 hours = 6(12.40 + 6.20) = 111.60 The total = 496.00 + 111.60 = $607.60 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 39) Kim Farrena earns $17.60 per hour. Overtime from Monday to Friday is paid at time and one-half regular pay for any hours over 7 1/2 per day. Overtime on weekends is paid at double the regular rate of pay. Last week Kim worked regular hours on Monday, Wednesday, and Friday, 8.5 hours on Tuesday, 11.75 hours on Thursday, and 5 hours on Saturday. Determine Kim's gross wages by each of the two methods. Answer: Method A Regular hours = 37.5 × 17.60 = 660.00 Overtime pay = 5.25 × 17.60 × 1.50 = 138.60 5 × 17.60 × 2 = 176.00 Gross earnings = $974.60 Method B At regular rate: 47.75 × 17.60 = 840.40 Overtime premium: 5.25 × 17.60 × 0.50 = 46.20 Overtime premium 5 × 17.60 × 1 = 88.00 Gross earnings = $974.60 Diff: 3 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 12 Copyright © 2021 Pearson Canada, Inc. 40) C.O. is paid a semi-monthly salary of $1 250.00. If his regular work week is 35 hours, what is his hourly rate of pay? Answer: Annual salary = 1250.00 × 24 = 30000.00 Weekly pay = = 576.92 Hourly rate = = $16.48 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 41) C.O. is paid a semi-monthly salary of 2 754.30. If his regular work week is 42 hours, what is his hourly rate of pay? Answer: Annual salary = 2754.30 × 24 = 66103.20 Weekly pay = = 1271.22 Hourly rate = = $30.27 Diff: 2 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 42) An employee receives a gross pay of $750.73 for 47.25 hours of work. What is the hourly rate of pay if a regular work week is 37.5 hours and overtime is paid at time-and-a-half the regular rate of pay? Answer: Let the regular rate of pay be y. Regular weekly pay = 37.5y Overtime pay = (9.75 × 1.5)y = 14.625y Total pay = 37.5y + 14.625y = 750.7 52.125y = 750.73 y = 14.40 The regular rate of pay is $14.40 Diff: 3 Type: SA Page Ref: 23-29 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 13 Copyright © 2021 Pearson Canada, Inc. 43) Ali checked his pay stub on his employee portal and it showed gross earnings of $596.00 for 51 hours of work. What is his hourly rate of pay if the regular workweek is 40 hours and overtime is paid at time and one-half the regular rate of pay? Answer: Total hours = 51 Regular hours = 40 Overtime hours = 11 At time-and-a-half, overtime hours are equivalent to 11 × 1.5 = 16.5 regular hours Rate of pay = 596/56.5 = $10.55 Diff: 3 Type: SA Page Ref: 24-32 Topic: 1.5 Applications - Payroll Objective: 1-4: Determine gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions. 44) Barb's Home Income Tax business operates only during tax season. Last season Barb grossed $38 790 including GST. During that season she spent $9500 before GST on her paper and supply purchases. How much does Barb owe Revenue Canada for GST? Answer: Barb's revenue of $38 790 includes 5% GST. GST taxable revenue = = 36 942.86 GST collected = 5% of 36 942.86 = 1 847.14 GST paid = 5% of 9 500 = 475.00 Barb owes Revenue Canada $1847.14 - $475 = $1372.14 Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 45) "Save the tax" is a popular advertising tactic. How much would you save on the purchase of a sweater with a list price of $52.00 in a Manitoba store during a "Save the PST" promotion? Answer: Savings on PST = 7% of $52.00 = 0.07(52.00) = $3.64 Diff: 1 Type: SA Page Ref: 32-36 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 14 Copyright © 2021 Pearson Canada, Inc. 46) A retail chain sells snowboards for $855.00 plus GST and PST. What is the price difference for consumers in London, Ontario, and Lethbridge, Alberta? Answer: Total cost in London Retail price = $855.00 HST = 13% of $855.00 = 0.13(855) $111.15 Total cost in London = $966.15 Total cost in Lethbridge Retail price = $855.00 GST = 5% of $855.00 = 0.05(855) $42.75 PST nil Total cost in Lethbridge $897.75 Difference = PST $68.40 Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 47) Emily's residence is assessed by the local taxation department at $249 500.00. Calculate the property taxes paid on this property if the existing mill rate is 15. Answer: 249500 × = $3742.50 Diff: 1 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 48) Calculate the property tax on a property located in the City of Brampton and assessed at $326 500 if the current tax rate is 1.05351%. Answer: Property tax = $326 500 × 1.05351/100 = $3439.71 Diff: 1 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 49) Sean's residence is assessed by the local taxation department at $160 000. Calculate the property taxes paid on this property if the existing mill rate is 20. Answer: 160 000 × = $3200.00 Diff: 1 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 50) The town of Pandora assesses property at market value. How much will the owner of a house valued at owe in taxes if this year's mill rate has been set at 21.386? Answer: Property tax = 32500 = $6950.45 Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 15 Copyright © 2021 Pearson Canada, Inc. 51) A town has an assessed residential property value of $350 000 000. The town council must meet the following expenditures: Education: $11 050 000 General Purposes: $2 100 000 Recreation: $270 000 Public works: $670 000 Police and fire protection: $857 500 a) Suppose 70% of the expenditures are charged against residential real estate. Calculate the total property taxes that must be raised. b) What is the mill rate? c) What is the property tax on a property assessed at $235 000? Answer: a) Total expenditure = $(11050000 + 2100000 + 270000 + 670000 + 958500) = 14947500 Total residential property tax = 0.70(14947500) = $10463250 b) Residential mill rate = (1000) = 29.895 c) Property tax = $235000 = $7025.33 Diff: 2 Type: SA Page Ref: 30-33 Topic: 1.6 Applications - Taxes Objective: 1-5: Through problem solving, compute GST, HST, PST, sales taxes, and property taxes. 52) Extend and total the following invoice. Quantity Description Unit Price Amount 77 Item A $0.65 ________ 208 Item B $83 ________ 621 Item C $1.19 ________ 414 Item D $1.95 ________ Total ________ Answer: 77 × 0.65 = $50.05 208 × 0.83 = 173.16 621 × 1.19 = 738.99 414 × 1.95 = 807.30 $1769.50 Diff: 1 Type: SA Page Ref: 16-21 Topic: 1.4 Applications - Averages Objective: 1-3: Through problem solving, compute simple arithmetic and weighted averages.