Earning and managing money
Syllabus topic — FM1 Earning and managing money
Calculate payments from a salary
Calculate wages using hourly rate, overtime rates and allowances
Calculate annual leave loading and bonuses
Calculate earnings based on commission, piecework and royalties
Determine deductions and calculate net pay
Evaluate a prepared budget
1.1 Salary and wages
Salary
1.1
Salary is a payment for a year’s work which is then divided into equal monthly, fortnightly or weekly payments. People who are paid a salary include teachers and nurses.
Advantages
•
Permanent employment
•
Superannuation, sick and holiday pay
Disadvantages
•
No overtime for extra work
•
Hours are fixed
Converting salary to weeks, fortnights and months
1 year = 52 weeks
Example 1
Write the quantity to be found.
Divide the salary by the number of fortnights in a year or 26.
Evaluate and write using correct units.
Write your answer in words.
Fortnightly pay = 65 208 ÷ 26
= $2508.00
Mitchell is paid $2508 per fortnight. Wages
Wage is a payment for work calculated on an hourly basis. People who are paid a wage include shop assistants, factory workers and mechanics.
Advantages
•
Permanent employment
•
Superannuation, sick and holiday pay
•
Overtime payments for extra work
Example 2
Disadvantages
•
No incentive to work hard each hour
•
Hours are fixed
Calculating a wage
Jasmine is paid at a rate of $1098 for a 40-hour week. a How much does Jasmine earn per hour? b What wages will Jasmine receive for a week where she works 38 hours?
Solution
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Write the quantity to be found.
Divide the amount by the number of hours worked. Evaluate and give answer correct to two decimal places.
Write the quantity to be found.
Multiply the rate by the number of hours worked. Evaluate and write using correct units.
Write your answer in words.
Salary
A payment for a year’s work, which is then divided into equal monthly, fortnightly or weekly payments.
a
Wage per hour = 1098 ÷ 40
= $27.45
Jasmine earns $27.45 per hour.
b
Wage for 38 hours = 27.45 × 38
= $1043.10
Jasmine receives $1043.10 for the week.
Wage
A payment for a week’s work and is calculated on an hourly basis.
Emily earns a salary of $92 648. Write, to the nearest dollar, her salary as amounts per: a week. b fortnight. c month.
2
The annual salary for 4 people is shown in the table below. Calculate their weekly and fortnightly payments. (Answer correct to the nearest dollar.)
Name
Salary
a
Abbey
$57 640
b
Blake
$78 484
c
Chloe
$107 800
d
David
$44 240
Week
Fortnight
3
What is Zachary’s fortnightly income if he earns a salary of $43 056?
4
Find the annual salary for the following people. a Amber earns $580 per week. b Tyler earns $1520 per fortnight. c Samuel earns $3268 per month. d Ava earns $2418 per week.
5
Harrison is a civil engineer and who earns a salary of $1500 per week. a How much does he receive per fortnight? b How much does he receive per year?
6
What is Yasmeen’s annual salary if her salary per fortnight is $1610?
7
Dylan receives a weekly salary payment of $1560. What is his annual salary?
8
Stephanie is paid $1898 per fortnight and Tahlia $3821 per month. Calculate each person’s equivalent annual income. Who earns the most per week and by how much?
