Consumer Arithmetic 2

More Wages and Overtime, Percentage and

Currency Conversion
More Wages and Overtime Questions
1. A man’s basic wage for a 38 hour week is $159.60. In a certain week he
earned $191.10 by working overtime. If he worked 5 hours overtime what is
the overtime rate?

2. A man’s basic hourly rate is $8.64. Overtime is paid at time and a quarter. If
the basic week is 40 hours, how many hour of overtime must be worked in
order to earn $ 410.40 for the week?
More Percentage Questions
1. An increase of 10% in salaries makes the wage bill for a factory $55 000,

(a) What was the wage bill before the increase?

(b) What is the amount of the increase?

2. A man sells a car for $4250, losing 15% of what he paid for the car. How
much did the car cost him?
Currencies
A currency is a system of money in general use in a particular country.

The units of currency vary. The dollar ($) is a popular unit used by several countries.
initials are used to identify the country, such as TT$ for Trinidad and Tobago. Some
other units are the euro (€), the pound sterling (£) and the peso (p).

Currencies can be bought and sold like any other

commodity such as sugar or coffee. The ‘price’
of a currency is given by the exchange rate.
For example, the exchange rate Exchange rates vary
JM$ = €0.01113 tells us that 1 from day to day unless
Jamaican dollar will ‘buy’ 0.01113 euros. they have been fixed by
governments.
Understanding the Principle of Converting Currency
Suppose you were told that $1 could purchase 32 sweets. Assuming that all the
sweets are the same, how many/much:

a. sweets could you purchase with $7?

b. money would you need to purchase 112 sweets?

a. Since $1 purchases 32 sweets, then $7 purchase 32 x 7 = 224 sweets

b. Since each group of 32 sweets costs $1, then finding how many times
Note: 112 = 32 + 32 + 32 + 16
32 can divide 112, will tell us how much money we need. That is,
. $1 + $1 + $1 + $0.50
112 ÷ 32 = 3.5 = $ 3.50
.
Therefore, you would need $3.50 to purchase 112 sweets.

This is basically the principle of converting currency

Using Rates to Convert Currency
Example 1:

If BDS $1.98 = US $1, find, to the nearest cent, the

value in Barbados money of US $1200.

What do we do ?
Using Rates to Convert Currency
Example 1 cont’d

Rate : BDS $1.98 = US $1

What we want to find: US $1200 in Barbados money

If US $1 = BDS $1.98
US $1200 = BDS $(1.98 × 1200)
Start with what you = BDS $2376
know on the
left-hand side (LHS)
and place what you
want on the RHS
Using Rates to Convert Currency
Example 2:

If £ 0.33 = BDS $1, find, to the nearest cent, the value in

Barbados money of £ 77.

What do we do ?
Using Rates to Convert Currency
Example 2 cont’d

Rate : £ 0.33 = BDS $1

What we want to find: £ 77 in Barbados money

Now, remember that each £ 0.33 gives us BDS $ 1, so if we find how many times
£ 0.33 can divide £ 77, we will find how many BDS $ we have.

Then, £ 77 = BDS $ (77÷0.33 = 7700÷33 = 700÷3)

= BDS $ 233.33
Currencies

Have you noticed the

difference between those two
examples?
If BDS $1.98 = US $1, find, to the nearest If £ 0.33 = BDS $1, find, to the nearest
cent, the value in Barbados money of US cent, the value in Barbados money of
$1200. £ 77.

In this example, we ARE GIVEN what US In this example, we are NOT GIVEN
$ 1 is in BDS $, so it is easy to find what £ 1 is in BDS, so we have to
US $1200 by multiplying 1.98 x 1200 divide 77 by 0.33
Convert the following
1. Rate: 1 peso = TT $ 0.13

How do we find?
(a) 13 pesos in TT $.... (0.13 x 13 = TT $1.69)
(b) TT$ 2.60 in pesos…. (2.60 ÷ 0.13 20 pesos)

2. Rate: 1 Euro = TT $ 7

How do we find?
(a) 120 Euros in TT $.... ( 7 x 120 = TT $840)
(b) 1.75 TT$ in euros…. (1.75 ÷ 7 = 0.25 euros)
NB. Always divide by the value given in the rate
Questions on Converting Currency
1. If US $1 = JM $150, find the following to the nearest cent where necessary:

a. The value in Jamaican dollars of US $12.

b. The value in US $ of JM $2325

2. A British tourist changes traveller’s cheques for £ 75 into Jamaican money.

The exchange rates are £ 0.70 = US $1 and JM $ 44.92 = US $1. How much
Jamaican money does he receive?
(Hint: Convert £ to US $ and then convert US$ to JM $)
Additional Questions on Converting Currency
1. Given that US $1 = EC $2.70 (Eastern Caribbean Dollar). Calculate:
(a) The number of Eastern Caribbean Dollars equivalent to US $85.
(b) The number of US $ equivalent EC $40.50

2. A holidaymaker from the UK changes a traveller’s cheque for £ 100 into

Barbados dollars at £ 0.35 = BDS $1. He spends BDS $250 and changes the
remainder into pounds at a rate of £ 0.33 = BDS $1. Find the amount he
receives.

Next slide for one more question ! :)

Additional Questions on Converting Currency
3. A Canadian tourist changes CAN $500 into Barbados dollars at a rate of CAN
$0.67 = BDS $1. She spends, in Barbados, BDS $400. She then travels to
Jamaica where she changes her Barbados money into Jamaican money, the
exchange being JM $22.46 = BDS $1. Find:

(a) How much Barbados money does she receive?

(b) How much Jamaican money does she get?
(c) She spend JM $200 and changes the remainder into Canadian money at a
rate of $0.034 = JM $1. How much Canadian does she get?