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Mathematics in Practical Situations

1. The chart of foreign currency note rates is published in the newspaper.

A merchant has 1000 Malaysian ringgits, 1000 US dollars, 2000 Hong Kong dollars and
2000 Thai bahts. He wants to exchange these for Singapore dollars. (The bank is to buy
these currencies from him.) He then will use the proceeds to buy Japanese yen. (The bank
is to sell the yen to him.) How many yen can he buy?
2. (a) The rate of exchange varies from S$2.15 per euro on a particular day to S$2.13 per
euro the next day. How many Singapore dollars will a man save if he waits until the
next day to buy 10000 euros?
(b) If he does not want to save that amount, how many more euros can he buy?
3. A woman takes out a life insurance policy for $100000 on her 40th birthday. The premium
is $20 per $1000 of the amount of policy per year. How much has she paid altogether in
premiums when she is 70 years old and not yet celebrated her 71st birthday?
4. A salesman receives a 2% commission on the orders under $10 and a 4% commission on
the orders over $10. If he obtains 20 orders of $8 each and 10 orders of $25 each, what
will be his average percentage commission on the total amount of the orders?
5. 1000 copies of a book are printed at a total cost of $3500 and 750 copies are sold at $5
per copy. Find the payment to the author if
(a) he receives 45% of the total profit on the books sold,
(b) he receives 40% of the selling price of each book sold minus the cost of printing of
the unsold copies.
6. A debt is to be repaid in two equal instalments, one at the end of two years and the other
at the end of three years. If the instalments are $500 each, and the compound interest is
charged at 5% per annum, find the total amount of money borrowed.
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7. A invested $1000 in a bank at a 3% simple interest per annum. B invested in another bank
at a 3% compound interest per annum. At the end of five years, both received the same
amount of interest. How much did B invest?
8. The list price of an article is $220. The retailer is allowed a trade discount of 25%. He
charges $250 for the article but allows a discount of 10%. What is his net profit?
9. (a) A merchant receives a profit of 10% on the price of an article which is sold at $6. One
sixth of his income is tax-free and the rest is charged at a rate of 22%. Find the net
amount he receives after tax for 1000 articles sold.
(b) How many such articles must he sell to gain a net income of at least $4000?
10. The standard rate of income tax is 2% in a certain country. 1/10 of a mans income is
tax deductable. The cost of living is deducted and this is considered to be $2500 per
person for both husband and wife, and $500 for each child. Also the first $500 of a mans
taxable income is only charged with of the standard rate. How much income tax has to
be paid by a man with a wife and 4 children if he receives a salary of $10000 a year?
End of Practice

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