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PERFORM FINANCIAL CALCULATIONSFNSACC303A

Workbook Solutions

Workbook Solutions_FNSACC303A_v2 of 19

PERFORM FINANCIAL CALCULATIONS

Contents

Part 1: Review Basic Arithmetic & Algebra 3

Part 2: Percentage Calculations in Accounting & Bookkeeping 13

Part 3: Simple Interest 16

Part 4: Compound Interest 17

Part 5: Income Tax 18


Part 1 – Review basic Arithmetic and Algebra

Activity 11 Using the correct order of operations answer the following:

(a) 8 – 4 + 2 = 6

(b) 13 + 5 – 6 + 3 = 15

(c) 7 x 2 – 4 = 10

(d) 18 ÷ 9 x 5 = 10

(e) 24 ÷ 2 ÷ 3 x 5 = 20

(f) 9 + 5 x 2 = 19

(g) 18 ÷ 3 – 1 x 4 = 2

(h) 10 – 12 ÷ 4 + 5 x 3 = 22

(i) 9 x (12 – 4) + 3 = 75

(j) (5 + 2) x (8 – 8) = 0

2 For the following questions, are the answers correct? If not, what is the correct answer?

(a) 24 ÷ 6 + 6 ÷ 2 = 7; correct

(b) 72 ÷ 8 – 1 x 6 = 48; incorrect = 3

(c) 5 + 2 x 1 – 7 = 0; correct

(d) 16 ÷ 8 – 1 = 1; correct

(e) 9 + 8 x 0 – 6 = 11; incorrect = 3


8

Activity 2

Solve the following:

(a)12+4

= 2

(b)15 − 1

= 73 − 1

(c)5 × 2 + 5 = 5

11 − 8

(d)

(e)

9 + 1 × 5 − 8 = 63 × 2 − 5

40 − (2 × 8) = 4(3 × 3) − 3

Activity 3

1 A group of 143 students met to see a hockey match. Four buses, each holding32 passengers, took most of the students. The rest went by train. How many students went by train?

=143 - (32 x 4) = 15

2 Sue and Paul are planning to marry. They have a quote from a caterer for $24per head. Sue has estimated that there will be at least 44 people from her side of the family and Paul wants to invite a further 38 people.

(i) How many people will be attending Paul and Sue’s wedding?

= 44 + 38 = 82 Guests

(ii) Calculate the cost of catering for Sue and Paul’s wedding.

24 x 82 = $1,968


= 3/6

= 8/12

= 12/15

= 10/16

= 3/18

Activity 4Convert these fractions to their equivalent fractions by filling in the missing numbers:

(a)1

=2 6 = 3/6 (f)

34

= 12

= 12/16

(b) 2 =

83 = 8/12 (g)

79

= 42

= 42/54

(c)4

= = 12/15 (h)2

= = 6/215 15 7 21

(d)5

= 10

8

(e)1

=6 18

= 10/16

= 3/18

(i)9

= 45

10

(j)5

=12 60

= 45/50

= 25/60

Activity 5Convert these fractions to their equivalent fractions by filling in the missing numbers:

(a)25

= 1

50

(b)11

=33 3

(c)12

= 3

16

(d)12

=30 5

(e)14

= 2

49

= 1/2

= 1/3

= 3/4

= 2/5

= 2/7

(f)16

=36 9

(g)70

= 7

100

(h)9

= 3

24

(i)6

=36 6

(j)33

= 1

99

= 4/9

= 7/10

= 3/8

= 1/6

= 1/3


Activity 6Write each of these fractions in their simplest terms.

(a)4

12

(b)3

15

(c)2128

(d)2540

(e)2160

(f)65

100

= 1/3

= 1/5

= 3/4

= 5/8

= 7/20

= 13/20

Activity 7

Find the values of:

(a)3

+ 1

= 19/20 (c)4

− 3 = 1/20

4 5 5 4

(b)2

+ 3

= 31/35 (d)7

− 2 = 5/24

7 5 8 3


Activity 8Find the value of:

(a) 1 3

+ 1

= 2 1/4 (e) 1 2

− 1

= 1 1/64 2 3 2

(b) 2 2

+ 3

= 3 3/20 (f) 2 3

− 1 1

= 1 7/205 4 5 4

(c) 3 3

+ 1 1

= 4 23/40 (g) 5 3

− 3 4

= 1 23/408 5 8 5

(d) 4 3

+ 2 1

= 6 17/205 4

Activity 9

(a)2

× 6

= 4/7 (f)3

÷ 1

= 2 1/43 7 4 3

(b)3

× 2

= 3/10 (g)7

÷ 3

= 1 1/64 5 8 4

(c) 1 1

× 2

= 1 (h) 5 ÷ 1 1

= 3 1/32 3 2

(d) 2 1

× 1 1

=33/8

(i) 3 1

÷ 2 1

= 1 11/28

4 2 4 3

(e)Workbook Solutions_FNSACC303A_v2 of 19

6 1

× 1 2 = 8 13/15

3 5


Activity 10

Write these fractions as decimal numbers:

(a)310

(b)9

100

(c)7

1000

(d)5

10 000

(e)1310

= 0.3

= 0.09

= 0.007

= 0.0005

= 1.3

(f)101100

(g)14100

(h)1541000

(i)120100

(j)21

1000

= 1.01

= 0.14

= 0.154

= 1.2

= 0.021

Activity 11

Convert the following fractions to decimals:

(a)25

(b)9

16

(c)78

(d) 2 18

(e) 1 7

10

= 0.4

= 0.5625

= 0.875

= 2.125

= 1.7

(f)3750

(g) 2 12

(h) 5 38

(i) 3 34

(j) 9 3

16

= 0.74

= 2.5

= 5.375

= 3.75

= 9.1875


Activity 12

Write these decimals as fractions.

(a) 0.7 = 7/10 (f) 5.001 = 5 1/1000

(b) 0.99 = 99/100 (g) 0.009 = 9/1000

(c) 0.01 = 1/100 (h) 3.9 = 3 9/10

(d) 0.573 = 573/1000 (i) 0.31 = 31/100

(e) 2.11 = 2 11/100 (j) 5.113 = 5 113/1000

Activity 13

Convert these decimals to fractions and simplify, if necessary.

(a) 0.6 = 3/5 (d) 1.2 = 1 1/5

(b) 0.25 = 1/4 (e) 5.46 = 5 23/50

(c) 0.625 = 5/8 (f) 2.585 = 2 117/200

Activity 14

Calculate the following. Use a number line if you find that it helps you.

(a) +3 + (+4) = 7

(b) –3 + (+8) = 5

(c) –12 + (+8) = -4

(d) –6 + (+2) + (+5) = 1


Activity 15

Calculate the following:

1 (a) 8 – (–2) = 8 + 2 = 10

(b) 6 – (–8) = 14

(c) –2 – (–9) = –2 + 9 = 7

(d) +2 – (–2) = 4

(e) (–6) – (–3) = -3

(f)

(g)

(h)

(–5) – (–5) = 0

0 – (–3) = 3

11 – (–7) – (–1) = 18+1 = 19

2 (a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

5 + 6 = 11

(–2) – (+7) = -9

– 2 – (+3) = -5

– 5 – 6 + 3 = -8

0 – (–5) = 5

+4 + (–9) = -5

8 – 5 + 6 – 2 = 7

12 – (–10) = 22

3 (a) At Thredbo the temperature was –7°C and then rose by 10°C. What is the new temperature? = 3 degrees celcius

(b) What is the difference in temperature between 38°C and –9°C? = 47 degrees

4 How many years were there between:

(a) 1215 AD and 1994 AD? = 779

(b) 55 BC and 1215 AD? = 1270

5 If your bank balance was –$42 and you deposited a cheque for $97, what would your new balance be? = $55


Activity 16

Work out these products:

(a) (–2)

(b) (–3)

(+8) = -16

(–3) = 9

(c) 3

(d) 6

4 = 12

(–5) = -30

(e) 2 2 (–3) = -12

(f) (–4) 5 (–5) = 100

(g) (–4) 11 = -44

(h) 3 (–8) (+2) = -48


(e

(f

(g

(h

(

(

(

(

(

-8 6

Activity 17

Work out the value of:

(a) −18 ÷ 3 = -6 ) 14 ÷ (+2) = 7

(b)25

= -5−5)

−44 = 4−11

(c) +30 ÷ (−6) = -5 ) −28 ÷ (−7) = 4

(d) −32 =

+4)

12 =

2

Activity 18

Calculate the following:

(a) 4 − 6 = 1−2

f)−5 × (+6)

= 53 × (−2)

(b)−6 × 6

= -9−2 × (−2)g)

−8 + (−12)4−3 + (−2)

(c)−3 + 9

= 2+3

h)3 × (−4) + (−3)

= 5−1 − 2

(d)−6 × (−6)

= 96 + (−2)i)

−3 + (−15) = 32 × (−3)

(e)−2 + (−8)

= -2+5j)

+6 + (−8) + (−14) = 22 × [−3 + (−1)]


4

4 5

8

Part 2: Percentage Calculations in Accounting & Bookkeeping

Activity 11 Change these percentages to fractions in their simplest form (cancelled down):

(a) 80% = 4/5 (b) 74% = 37/50

(c) 12.5% = 5/4 (d) 175% = 7/4

(e) 387.5% = 775/200 = 31/8 (f) 0.16% = 4/25

2 Change these percentages to decimals.

(a) 60% = 0.6 (b) 37.5% = 0.375

(c) 213% = 2.13 (d) 0.45% = 0.0045

Activity 2Convert the following to percentages.

1 1

= 25% 2 1

= 20%

3 7

= 87.5% 4 3 3

= 375%

5 0.7 = 70% 6 1.8 = 180%

7 2.075 = 207.5% 8 5.6775 = 567.75%


Activity 31 Find:

(a) 50% of $300 = 150 (b) 25% of $180 = 45

(c) 15% of 600 mm = 90 (d) 27% of 60 kg =16.2

(e) 140% of 8 litres = 11.2 (f) 12.5% of $80 = 10

2 What percentage is:

(a) 15cm of 120 cm? = 12.5%

(b) $20 of $25? = 80%

(c) 30 mins of 2 ½ hrs ? (Hint: Convert both measurements to mins) 30/150 = 20%

(d) $21.25 of $85? = 25%

Activity 41 At a ‘20% off’ sale, Susan bought a pair of slippers that normally retail for $25.

What discount did she get, and how much did she have to pay for the slippers?

Discount = 20% x 25 = 5 new price is 25 – 5 = 20

2 A store has a ‘45% off clearance’ sale on all electrical items. Jason bought a juicer (normal price $29) and a microwave oven (normal price $161). What was the total price he paid at the sale?

$104.50

3 A used car salesman receives 2.5% commission on all the cars he sells. He sold one car for $8 500, another for $11 000, and another for $23 500. What was his total commission?

2.5% x (8500+11000+23500) = 2.5% x 43000 = 1075

4 An art auction house retains 8% of all money gained at auction. A ‘Dobell’ was sold for$240 000. What was the commission?

8% x 240000 = 19200

5 A washing machine man came to fix my washer. The cost was $112 labour, and $28 parts. How much GST must be added?

10% x (112 + 28) = 10% x 140 = 14


6 A store offers a ‘20% off’ sale on all items. What is the discount on a $315 TV and a $42 picture frame?

20% x 315 = 63 and 20% x 42 = 8.4 ..... 63 + 8.4 = 71.4

7 At a ‘15% off’ sale, Dale bought an electric chainsaw, which normally retails for $140.What discount did he get, and how much did he have to pay for the saw?

Discount = 15% x 140 = 21 new price = 140 – 21 = 119 OR 85% x 140 = 119

8 A store has 12.5% off all women’s clothes. Saffron bought a top (normal price $45) and a skirt (normal price $35). What was the total price she paid?

(100% - 12.5%) x (45+35) = 87.5% x 80 = 70

9 Charlotte bought jeans, normally priced at $85, on sale for just $63.75. What was the percentage discount?

25%

10 A used caravan salesman receives 5% commission on all the vans he sells. He sold one van for $12 500, and another for $14 000. What was his total commission?

5%x(12500 = 14000) = 5% x 26500 = 1325

11 A real estate agent charges 1.8% commission on a house sale. What is the commission on a house which sold for $650 000?

1.8% x 650,000 = 11,700

12 What GST is charged on a refrigerator priced at $800?

800 divided by 11 = $72.73

13 I bought items costing for $45, $67, and $11. What total GST did I pay?

(45+67+11) divided by 11 = 123 divided by 11 = 11.18


Part 3 Simple Interest

Activity 1

1. You have a bank deposit earning simple interest @ 6% per year that has grown to $3570 after three years.

(a) Calculate the amount of the original deposit. (P) = 3025

(b) Calculate the amount of interest earned over the three years. (I) = 544.58

2. Alice earns $1500 interest over five years on a deposit of $9000.

Calculate the simple interest rate that was applied (R). = 3.33%pa

3. If a $6500 deposit grows to $8700 at a simple interest rate of 4.5 % per year, what period of time has this taken? (T) = 7.5 years

4. Investment: Deposit $5000 @ 4% per year simple interest. How much do you have at the end of five years? (A) = 6000

5. This is a loan repayment: (Lr)

Principal: $5000

Interest rate:

4% per year simple interest

Term: 5 years with monthly instalments/repayments

Instalments: to be calculated = $100 per month


Part 4 Compound Interest

Activity 1

1. You deposit $3,000 at the beginning of Year 1 earning compound interest of 3% per year with a term of 2 years. What is the future value?FVIF = 1.0609 x $3000 = $3182.78

2. You have inherited $12,000 and have decided to invest it in a term deposit for 5 years at an interest rate of 10%. How much will you have on maturity?FVIF = 1.6105 x $12,000 = $19326

3. You hope to have $40,000 in 2 years time for a car. The current interest rate is 8%. How much do you need to invest today?PVIF = 0.8573 x $40,000 = $34292

4. You are saving for a house and need a $150,000 deposit in 3 years time. The current interest rate is 3%. How much do you need to put into your bank account today?PVIF = 0.9151 x $150,000 = $137,265


Part 5 Income Tax

Activity 11. Roads Traffic Authority

2. Department of Education

3. Health

4. State Grants to Not For Profit Organisations

5. Centrelink

Activity 2a) 15% ($32 900 – $6 000) = $4 035

b) $54 550 + 45%($190 000-$180 000) = $54 550 + $4 500 = $59 050

c) 15%(26 000-6 000) = $3 000

Activity 3ATO website www.ato.gov.au/individuals

a) 15% ($15 500 – $6 000) = $1 425

b) $17 850 + 38%($175 100-$80 000) = $17 850 + $36 138 = $53 988

c) 15%(6 100-6 000) = $15

Activity 4ATO website www.ato.gov.au/businesses/content

a) $108

b) $0 (Note: Used to be less than $320 no tax was payable on holiday leave loading.)

c) $102

Activity 5ATO website www.ato.gov.au/content/downloads

a) $357

b) $3


http://www.ato.gov.au/content/downloads

http://www.ato.gov.au/businesses/content

http://www.ato.gov.au/individuals

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