Julian Cho Technical High School

Student Module 1
School Year: 2020 – 2021

SUBJECT MATHEMATICS

LEVEL SECOND FORM

DATE September 30, 2020

School Phone Numbers: 630-4159 & 671-4159

Develop a passion for learning. If you do, you will never cease to grow.
Anthony J. D’Angelo
 Module One
FORM (Consumer Arithmetic)

2 Julian Cho Technical High School Teaching Module

School Year: 2020 – 2021
Cover Page
Subject: Mathematics
Form: Form Two
Name: __________________________ Date: _______________________ Class: ________

Teacher Introduction: Special greetings to our students, we are:

Teacher Math Class Numeracy Class Homeroom Class

Delis Roches 1 Cus, 2 Aleman, 2 Cus
2 Cus, 2 Coc
Francisco Recinos 3 HM1, 3 Agric, 2 Nicholas
3 Gen, 3 Bus, 2 Nic
Delvin Sentino 2 Mensah, 2 Sampson 2 Sampson
Maria Cus 1Aleman , 2 Tut 1 Coc, 1 Aleman
Joseph Supaul 2 Lopez, 2 Morgan,1 Lopez 1 Cus 1 Lopez

Subject Introduction:
Mathematics is a precise and concise means of communicating patterns, relationships, ideas and values in a
quest for a deeper and better understanding of the world around us. It requires observation, representation,
investigation and comparison of patterns in social and physical phenomena. The Mathematics program of
study offered at this institution is designed to develop student’s Mathematical literate competencies such as
thinking and reasoning, Mathematical communication, problem posing and solving. Mathematics therefore
helps students with the skill set for the enhancement of their environment, as well as for the empowerment
of self and community, in order to be more competitive in an ever-changing world.

Teacher Expectations:
 Set up a learning space – try to reduce distractions
 Establish a routine – use the timetable provided by the school to complete task
 If you have any questions: - Call the school to set a time to talk to your teacher
 Make a check list to keep track of task completed

Topics: References:

 Introduction and key definitions 1. Mathematics a complete course with C.X.C.

 One quantity as a fraction of another questions volume 1, Raymond
 Fraction/percentage of a quantity Toolsie B.Sc., MACP
 Convert decimal to percent
 Profit and loss, Discount, 2. Juan, K. (2008) The Interactive Approach
 Hire purchase to Mathematics –Second Form. Fourth
edition

1
 Module One
FORM (Consumer Arithmetic)
1.1 Lesson 1 (Sub-topics: One quantity as a fraction of another
2 fraction/percentage of a quantity)
)
Rationale: As a student of mathematics, there is a need for you to have a full comprehension of key definitions and terminologies
associated with consumer arithmetic as part of introductory activities. This will give you the much needed motivation to study this
branch of mathematics. These terms are often used in real life situations for examples when shopping, budgeting, investing etc.
where you will be afforded a great opportunity to practice consumer arithmetic.
As a student just like any other students, you should always desire discount on items when shopping. If the discount on an item is
stated as 10%, you ought to be able to calculate how much is the discount and make sure you receive it. The same applies to bank
interest and commission.

Learning Objectives Notes / Explanation

Resources, Information,

After reading the handout and Conversions between real numbers

completing the practice Fractions and decimals Fractions are a short way of writing a division.
activities, you should be able
to:
2
This is why the division sign looks like a fraction.
i. State and explain the meanings of the 5
terminologies that are related to 3/8 means 3 ÷ 8.
consumer arithmetic given a set of words
(K & C). To change a fraction to a decimal, divide the numerator by the denominator:
30
ii. Distinguish between the numerator and =3 remainder 6
8
the denominator given a set of fractions
(C). To change a decimal to a fraction, write the decimal part as a fraction with the
iii. Given two quantities, calculate the place value of the last digit as denominator.
percentage relative to each other (A)
iv. Calculate the fraction if the numerator
and the denominator of the quantity are
given (A)
v. Given a quantity in percentage, break it
down into numerator and denominator
then convert it to a fraction (S). Decimals and percentages
Decimals are part of a whole one, whereas percentages are part of 100.

Percentages are 100 times bigger than the equivalent decimal.

 the notes carefully.
Read
So, to change a decimal to a percentage, multiply by 100 (by moving the digits
1. Highlight important two places to the left).
information. Go over the
examples carefully. e.g 10.4 = 40% e.g 2 0.575 = 57.5%
2. Complete all activities 1 to 4. To change a percentage to a decimal, divide by 100 (by moving the digits two
Return #4 to the teacher places to the right).
3. Review your notes and working A fraction means division.
out. 80% = 0.80 = 0.8 (1 d.p) Key Points • A percentage can be
4. For more practice, do the extra written as a common fraction with
24% = 0.24 (2 d.p) a
exercises. denominator of 100.
5. Feel free to use other Math • Always give fractional answers
in their lowest terms.
2 Resource Textbook.
 Module One
FORM (Consumer Arithmetic)
Lesson 1

2
Notes / Explanation

Key Points
Fractions and percentages
To change a fraction to a
percentage, first change it to Notes / Explanation
a decimal (by dividing) and
then to a percentage (by 0.555 X 100
multiplying by 100).

To change a percentage to a fraction, write the percentage as a fraction of 100.

Expressing one quantity as a fraction or percentage of another

2
As well as meaning division, a fraction also means ‘out of’, so 5 means 2 out of 5.
12 2
So $12 as a fraction of $30 is 30 = 5
12 2
As a percentage, 30 = 5 = 2 ÷ 5 = 0.4 = 40%

To calculate a fraction or a percentage of a quantity

Multiplication means ‘lots of’. Three lots of $15 = 3 × $15 = $45. When dealing with fractions, we just
say ‘two-thirds of $18’ instead of ‘two-thirds lots of $18’. In this sense, ‘of’ means multiply. So to find
2 2 18 2 6 12
2/3 of $18, calculate: 3
× 18 = 3 × 1
=1×1= 1
= $12

And 40% of 12 kg = 0.4 × 12 = 4.8 kg

To calculate the whole from a fraction or percentage

2 1
e.g #1 Michael saves 5 of his wages. He saves $64. So 5 of his wages is $64 ÷ 2 = $32.

His wages are 5 × $32 = $160.

e.g #2Marie pays a 5% deposit of $650 for a car. So 1% = $650 ÷ 5 = $130.

The car costs 100 × $130 = 13 000

3
 Module One
FORM (Consumer Arithmetic)
Lesson 1

123

4
 Module One
FORM (Consumer Arithmetic)
Lesson 1

2 Practice Activity #1-Percentage and definition

Percentage means out of _ _ _.

Below are squares with 100 parts. Complete the statements that follow.

. 1.

40% have red dots

red

a) _ _ % have blue dots.

b) 10 % have __________
blue dots.

green

green 2.

27% have green dots

red
a) _ _ % have red dots.

black
b) 20 % have __________
dots.

brown _ _% have orange dots.

5
 Module One
FORM (Consumer Arithmetic)

2 Lesson 1: Practice Activity #2-Fraction, decimal, percentage of a given quantity

Multiple Choice: Select the correct answer and show your working out on the lines
provided under explanation.

1
.

2
.

3
.

Activity#3: Fraction/percentage of a given quantity

The Caribbean has a population of about 40 million.

About 3 million of these live in Jamaica.

•1. What percentage of the Caribbean population lives in Jamaica?

• 2. Research the population of some other Caribbean islands and find out what percentage
of the total live on these islands. (optional)

6
 Module One
FORM (Consumer Arithmetic)

2 Lesson 1 Teacher: __________

Name: __________________ Class: __________ Date:_______

Activity #4 Home Work #1: Multiple Choice: Select the correct answer and show your working out on the
lines provided under explanation. (Total 10pts) TO BE RETURNED TO YOUR TEACHER

7
 Module One
FORM (Consumer Arithmetic)
Lesson 1

2 Teacher: ___________________

Class work #1- TO BE RETURNED TO YOUR TEACHER

Name: ________________________ Class: _____________ Date:______________

Problem Solving: Show all necessary working out. ( Total 15pts)

1. Calculate the following quantities

A) 15% of 70 = B) 85% means _____ out of 100

C) 52% as a fraction = D) 4/5= _________%

2. Calculate the following percentages. Give your answers correct to 2 d.p.

A) 30 people signed up for a swimming competition, but only 17 turned up. What percentage of the
people who signed up came on the day?

B) James had a hole in his pocket. He put 5 marbles into his pocket but lost 2 on his way to school.
What percentage of his marbles did he lose?

C) Susana was given $45 by her Grandma. She gave $5 of this money away to charity. What percentage
of her money does she have left?

8
 Module One
FORM (Consumer Arithmetic)

2 Lesson 1
SUMMARY

1. To change a fraction to a decimal, divide the numerator by the denominator.

2. To change a decimal to a fraction, divide the decimal part by the place value of the last figure,
and simplify, e.g. 0.32 = 32/ 100 = 8/ 25
3. To change a decimal to a percentage, move the digits 2 places to the left to multiply by 100, e.g.
0.625 = 62.5%
4. To change a percentage to a decimal, move the digits two places to the right to divide by 100,
e.g. 38% = 0.38
5. To change a fraction to a percentage, change it to a decimal and then to a percentage.
6. To change a percentage to a fraction, write the percentage as a fraction of 100 and simplify, e.g.
45% = 45 /100 = 9/25

Extra practice: Reference: Interactive approach to Mathematics page 57-59 exercise 4a to 4f odd
numbers.

Answers/Solutions to activities:
50
Activity #1: 1)a) 100 ∗ 100 =50%,

b) 10% of 100 dots= 10/100* 100= 10 dots.

There are 10 green dots, so the answer is green

23
2) 100 ∗ 100 =23%,

b) 20% of 100 dots= 20/100* 100= 20 dots.

There are 20 dots that are black so the answer is black

2
Activity #2: 1) 300 x 1.2= 300 x 1 10 = 300x 22/10=300 x 6/5
3
3 = 3 ÷ 4 =4√3=0.75
2) 300 ∗ 4 = 300 x 0.75 4

45 45
3) 45% of 220=100 ∗ 220 = 220 x 0.45 = 0.45 𝑜𝑟 100 √45=0.45
100

Activity #3: 1) 3 mil/40 mil x100=7.5% 2) Varies according to island selected

Extra practice: Check your answer on page 270 in the Interactive Approach book form 2.

9
 Module One
FORM (Consumer Arithmetic)

Activity 2 1.2Lesson 2 (Sub-topics: Convert numbers from decimal to percent

Profit and loss, and Discount)

Rationale: Your ability to convert decimal to percentage and vice-versa comes in handy when you simply want to
convert your subject grades to percentage for example 6/12 = 0,5 = 50%. Similarly, this branch of mathematics is also
applicable to calculating bank interest and commission. Knowledge and application of fraction and percentage will help
you to easily navigate the complex terrain of work and business after schooling. In the near future, you and other
graduates from all levels of institution of learning will start to rely more and more on entrepreneurial skills to support
yourselves and your family. Buying and selling depend on the ability to understand how numbers work. Calculation of profit
and loss will enable you to profitably manage your own business and shop where they give discount on goods and
services.
Practice Tips
Notes / Explanation
Learning Objectives: 1. Read the notes
carefully. Key Points
Multiply by 100 to convert a number
After reading the
handout and completing 2. Highlight from decimal to percent then add
the practice activities, you important a percent sign %.
should be able to: information.
1. Converting from a decimal to
3. Complete all a percentage is done by multiplying
i. Describe the relationship activities the decimal value by 100 and adding %.
between fractions, decimals
4. Review your notes2. Example: 0.10 becomes 0.10 x 100 =
and percent in a discussion (C
and working out. 10%
& Affective).
5. For more practice,3. Example: 0.675 becomes 0.675 x 100 =
ii. Convert a fraction to a
do the extra 67.5%
percent given the equivalent
exercises
fractions (C).
iii. Predict the next percent given
Lesson 2
a sequence of decimals (A).
iv. Apply fraction-to- percent
conversion procedure to
complete assigned work (A)
v. Solve problems about cost
price, selling price, profit, loss
markup, margin and discount,
given a description of a
business transaction (A & S)
vi. Visit a local grocery store to
discuss about objective above
with the shop keeper (P).
(Optional)

10
 Module One
FORM (Consumer Arithmetic)

Notes / Explanation
If
Keya person
Pointssells an object for more than they paid for it, they make a profit. If they sell for less
than they paid for it, they make a loss. Profit and loss are often expressed as a percentage of
the original cost of object.
Profit and loss
The cost price plus the
profit gives the selling
price.
The cost price minus
the loss gives the
selling price.
Profit and loss are
expressed as
percentages of the cost
price.

Lesson 2

11
 Module One
FORM (Consumer Arithmetic)
Example 1 Profit

Harry2
Profit buys a chair for $250 and wants
Example 2 Discount- Shops sometimes offer a
discount; this is a percentage that they take off the
to sell it to make a 15% profit. price, For example in a sale:
His profit is 15% of $250 = 0.15 × 250 Profit Oliver sees some shoes in the sale.
= $37.50, They normally cost $70, but there is a
20% discount. The discount is 20% of
so he must sell it for $250 + $37.50 =
$70, or 0.2 × $70 = $14, so the shoes
Example 3 loss
$287.50
cost $70 − $14 = $56.
Profit
Discount is $14

Discounted price is $56

Reverse percentages Percentage changes (profit, loss, discount, tax) are always based
on the original amount.
Worked Example 4
Alison sees a handbag in a sale. She wants to know how much it cost
originally. She cannot work it out by finding 25% of $60, because $60 is the
sale price, and the 25% has already been taken off the original price. She
realizes that, if 25% has been taken off, she has paid 75%, or 0.75.

So original price × 0.75 = $60 SALE 25%

Working back, $60 ÷ 0.75 = $80 OFF! NOW
ONLY $60
The original price was $80

Use this technique whenever you have to work back to the original price.

Worked Example 5: If a toy costs $3.68 including VAT at 15%, you are paying 100% +
15% VAT = 115% or 1.15

Original price × 1.15 = price including VAT

So price including VAT ÷ 1.15 = original price

$3.68 ÷ 1.15 = $3.20

12
 Module One
FORM (Consumer Arithmetic)

2 Lesson 2

Activity #1
Melissa buys an article and aims to make a profit of 20%.
Unfortunately, she cannot sell it, so she puts it in a sale with 20% off.
Explain to her why she makes a loss of 4%.

Explanation:

Activity#2: Profit and loss worksheet

Complete the table below.

Cost Price Selling Price Profit Loss %Profit %Loss

e.g $ 500.00 $ 650.00 $150.00 -- 30.00% --

$ 1,000.00 $ 1,200.00

e.g $ 800.00 $ 700.00 -- ($100) -- 12.50%

$ 9,000.00 $ 8,550.00

$ 3,300.00 $ 5,016.00

$ 60,000.00 $ 55,200.00

13
 Module One
FORM (Consumer Arithmetic)

2 Lesson 2

Activity #3: Discount worksheet

Complete the table below by calculating the discount and selling price on each of the
following marked price.
Marked Price Discount Amount of Discount Selling Price
e.g
a) $ 100.00 12% $12.00 $88.00

b) $ 75.00 20%

c) $ 60.00 25%

d) $ 72.80 15%

e) $ 150.00 8%

Activity #4: Practice work on original price, discounted price and tax.

Multiple Choice: Circle the correct answer for the following questions.

1. Naomi buys a basketball for $12. If there is an 8% tax, how much does she pay in all?
A) $.96 B) $12.08 C) $11.04 D) $12.96

2.. Marion buys a sweatshirt for $25.99. If there is a 7.5% tax, how much does he pay in all?
A) $26 x .075 + $26 B) $26 x .075 C) $26 x 7.5 D) $26 x 7.5 + $26

3. Simeon buys some food for $6. If there is a 20% tax, how much does he pay in all?
A) $18 B) $4.80 C) $7.20 D) $1.20

4. A pair of shoes originally costs $45. If there is a 30% off discount, how much do you pay?
A) $31.50 B) $13.50 C) $58.50 D) $43.65
5. A stereo originally costs $400. If there is a 50% off discount, then another 20% off that price, how much
do you pay?
A) $120 B) $200 C) $160 D) $240

6. A salesman buys a stove from a manufacture. The salesman sells the stove for $1825.00 at a profit of
25%.

a) What amount did the salesman pay the manufacturer for the stove?

b) if the salesman gives 5% discount for cash, what amount does a customer pay for the stove?

14
 Module One
FORM (Consumer Arithmetic)
Lesson 2

2
Activity #5: Quiz #1- TO BE RETURNED TO YOUR TEACHER Teacher: _________________

Name: ______________________ Class: __________________ Date:__________

Multiple choice: Circle the correct answer. (@3 pts each)

(1) If 600 tube-lights are bought at the rate of $20 each, and 480 are sold at rate of $30 each. Find
the overall profit/loss. a. 15% profit b. 20% profit c. 30% profit d. 25% profit
(2) Sarah purchased 240 CDs for her shop at $8 each. During transportation 48 CDs got damaged,
and she sold remaining CDs at price of $12 each. Find overall profit/loss in %.
a. 20% profit b. 25% profit c. 15% profit d. 10% profit

(3) A shopkeeper gives 10% discount on all items. If discounted price of a DVD player is $ 14400,
find the original price of the DVD player. a. $ 17600 b. $ 12800 c. $14400 d. $ 16000

(4) A jacket originally costs $79. If there is a 35% off discount, how much do you pay?
a. $79.35 B) $51.35 C) $106.65 D) $27.65

(5) Pants cost $20. If they are on sale for 20%, and then 30% off of that sales price, what is the final
cost?
A) $10 B) $12.20 C) $11.20 D) $20

(6) A movie costs $20. It is on sale for 25% off. If there is a 6% tax, what is the final price?
A) $15.75 B) $21 C) $4.20 D) $15

Problem solving: Show all working out. @ 4pts each

7. Jeffrey buys an article for $60 and sells it for $81. What is his percentage profit?

8. Chris buys an article for $60. He then adds on 20% for his profit, and then has to add on 15%
VAT. What is the selling price?

15
 Module One
FORM (Consumer Arithmetic)

2
Lesson 2

Summary and key points:

1. Profit, loss, discount and tax are all calculated as percentages.

2. Losses and discounts produce a final value lower than the original; profit and taxes result in a higher
final value.
3. When working back to find the original amount, add or subtract the percentage to 100%, convert to
a decimal and divide.

Solution to Activities:

Activity#1: Cost price + Profit= Selling price, therefore 100% is the cost price and profit of 20% is added
to get 120% as the selling price. If a 20% of the selling price is off, then it is calculated as follows: 20% of
120= 20/100 x 120= 24%

Hence the new selling price is 120%- 24%= 96%

Loss % is: Cost price- selling price, 100%-96%= 4%

Activity#2

$ $ % %
Cost Price Selling Price Profit Loss %Profit %Loss
$ 500.00 $ 650.00 $150 30.00%
$ 1,000.00 $ 1,200.00 $200 20.00%
$ 800.00 $ 700.00 ($100) -12.50%
$ 9,000.00 $ 8,550.00 ($450) -5.00%
$ 3,300.00 $ 5,016.00 $1,716 52.00%
$ 60,000.00 $ 55,200.00 ($4,800) -8.00%

Activity #3

Calculate the discount and selling price on each of the following

Marked Price Discount Amount of Discount Selling Price
a) $ 100.00 12% $ 12.00 $ 88.00
b) $ 75.00 20% $ 15.00 $ 60.00
c) $ 60.00 25% $ 15.00 $ 45.00
d) $ 72.80 15% $ 10.92 $ 61.88
e) $ 150.00 8% $ 12.00 $ 138.00

16
 Module One
FORM (Consumer Arithmetic)

Activity#4: 1. D 2. A 3. C 4. A 5. C 6.a) $1,460 b) 1733.75

7.5
2.Tax percentage =
1. Price without tax = $12 100

108 = .075
Price inclusive of tax = $12 × 100
So, 26 × 0.75 + 26 will give tax inclusive of the
= $12 × 1.08
price
= $12.96
4. (i)30% of the selling price
3.Price without tax = $6
120 .30 × $45
Price inclusive of tax = $6 × 100
= $13.50
= $6 × 1.20
= $ 7.20
(ii) cash price = selling price – discount
price
5.(i) discount of stereo= 50% of the
selling price = $45 - $13.50
= .50 × $400 = $31.50
= $200
100
(ii) 20% of the discounted price (new 6. (a) selling price × 125
selling price) 400-200=200
$1,825 × 0.8
.20 × $200
Cost price= $1,460
= $40
(iii) selling price – discount
(b) discount of stove = 5% of the selling
$200 - $ 40 price
= $160 = .05 × 1825
= $91.25

Cash price=selling price – discount price

= $1,825 - $91.25
= $ 1,733.75
17
 Module One
FORM (Consumer Arithmetic)

2
1.2 Lesson 3(Sub-topics: Hire Purchase, The Down
payment, The Outstanding Balance, The Interest Charge

Rationale: You)as a student of mathematic need to be able to calculate or discover the hidden fees when purchasing
Activity items whether at a variety shop or purchasing big items such as a car from a dealership. Hire purchase is a branch of
consumer and commerce arithmetic that enables a person to pay installmentally at a special high rate (with an interest).
You need this aspect of mathematics to make big life decision such as purchasing a car, building a home or operating a
small business. This module enables you to apply arithmetical skills that involve percentages, fractions, decimals, profit
and loss and hire purchase, to real life situations.

Learning objectives Practice Tips Notes / Explanation

1.Read the notes Key Points

From the given statement. Identify
After reading the handout and
carefully. the cost of the object if paid
completing the practice activities,
wholesome.
you should be able to: 2.Highlight
4. A Deposit must be made. It would
 Identify hire purchase important
usually be around 10% of the total
transactions and terminologies information.
cost of the item.
(K).
 Detect missing values given a 3.Complete all 5. The Number of Months will be given.
activities Along with the Monthly Instalments to
table of hire purchase
be paid every month.
transactions (A).
4.Review your notes 6. The sum of the above calculations will
 Correctly interpret hire purchase
and working out. provide the Total Hire Purchase
agreement (E).
5.For more practice, Price. e.g
 Calculate and value of goods that
are repossessed and profit upon do the extra exercises
the re-sale of such goods (A)
 Evaluate the profit on hire
purchase of goods of small
values (E).
 Solve problems about hire
purchase using the skills acquired
in this lesson (A).

Resources
Calculator, Typing
Sheet, Pen, Pencil,
Worksheet, Paper
Money, Markers,

18
 Module One
FORM (Consumer Arithmetic)

2
Lesson3

Key Terms

A hire purchase, also known as an installment plan, is an arrangement whereby a

customer agrees to a contract to acquire an asset by paying an initial installment (e.g., 40%
of the total) and repays the balance of the price of the asset plus interest over a period of
time.
A seller is an individual, or entity, who exchanges any good or service in return for
payment. In the financial markets, a seller is a person or entity who is offering a security
they hold to be purchased by someone else. In the options market, a seller is also called a
writer.
A Buyer is (Commerce) a person who buys; purchaser; customer.
Instalment is a sum of money due as one of several equal payments for something, spread
over an agreed period of time.

Notes / Explanation/ Handouts

Key Points system is a system in which the goods are delivered to the purchaser at the
Hire Purchase
time of agreement before the payment of instalments.

However, the title of the goods is transferred after the payment of all instalments as per the
hire purchase agreement.

It is a special system of purchase and sale of goods. Under this system the purchaser pays the
price of goods in instalments.
CONDITIONS OF HIRE PURCHASE AGREEMENT

 Hire purchase is a transaction where the goods are sold by vendor to

the purchaser under the following conditions:
 The goods will be delivered to the purchaser at the time of the
agreement
 The purchaser has a right to use the goods delivered
 The price of the goods will be paid in the instalments.
 Every instalment will be treated to be the hire charges of the goods
which is being used by the purchaser.
 If all the instalments are paid as per the terms of agreement, the title
of the goods is transferred by the vendor to the purchaser.
 If there is default in the payment of any of the instalments, the vendor
will take away the goods from the possession of the purchaser without
refunding him any amount received earlier in the form of instalments.

19
 Module One
FORM (Consumer Arithmetic)

2 Lesson 3

Example 1 Deposit Example 2 Hire Purchase - Harry has to pay 12

monthly instalments of $30. How much is the total
Profit buys a chair for $300, but is
Harry
cost of the chair on hire purchase?
asked to make a deposit of 20%. How
much is the deposit? Deposited Amount is $60.

His deposit is (20/100)*$300 = $60 Monthly Installments * Number of

months = Amount repaid
so he must sell it for $250 + $37.50 =
$287.50 12*$30 = $360.00

Total = Amount repaid + Deposit

$360.00+$60.00 = $420.00

Example 3:
A laptop can be bought on hire purchase making a down payment (deposit) of
$1,360 and 14 monthly payments of $442 each.
Calculate the hire purchase:

HP= Down payment + (monthly installment × number of months)

= $1,360 + ( $442 × 14 )
= $1,360 + $6,188
= $7,548
Or
HP= Down payment + amount payable
= $1,360 + $6,188
= $7,548
Therefore, amount payable is the outstanding balance plus interest which is the
same amount as the monthly installment x the number of months.
Amount payable= monthly installment × number of months
Or outstanding balance + interest charged

20
 Module One
FORM (Consumer Arithmetic)

2
Lesson 3

EXAMPLE 4:
The marked price of a car is $49,500. A person can pay a deposit of 30%
and interest at 12% per annum is charged on the outstanding balance. The
total amount payable is to be paid in 2 ½ years. Calculate:
a. The amount of each monthly installment
Ans= $1,501.50
b. The hire purchase of the price of the car
Ans= $59,895
a(i)Each monthly installment
Deposit = x% of the cash price
30
= × $49,500
100
= $14,850
(ii)Outstanding balance = cash price - deposit
= $49,500 - $14.850
= $34,650
(iv)amount payable = outstanding balance + interest
= $34,650 + $10,395
= $45.045
𝑎𝑚𝑜𝑢𝑛𝑡 𝑝𝑎𝑦𝑎𝑏𝑙𝑒
(v)each monthly installment =
# 𝑜𝑓 𝑒𝑎𝑐ℎ 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑖𝑛𝑠𝑡𝑎𝑙𝑙𝑚𝑒𝑛𝑡

$45,045
=
30

= $1,501.50 is monthly installment

b) Hire purchase of car = deposit + amount payable
= $14,850 + $45,045
Hire purchase price = $ 59,895

21
 Module One
FORM (Consumer Arithmetic)

2
Lesson 3

EXAMPLE 5

22
 Module One
FORM (Consumer Arithmetic)

Lesson 3

The Terms Used

(i) Cash price = price of asset paid at once

(ii) Hire purchase price = cash price + interest
(iii) Installment = schedule payment during required period
(iv) Deposit = down payment / initial payment
(v) Interest charged = extra cost paid on outstanding balance (unpaid amount)
(vi) The buyer/user = a person who agreed to buy or to accept good(s)
from the dealer based on hire purchase agreement
(vii) The dealer = a person who sells good(s) based on hire purchase agreement

Activity#1: Practice the following questions on Hire Purchase.

23
 Module One
FORM (Consumer Arithmetic)

2
Lesson 3

Activity #3: REVIEW QUESTIONS

Activity# 2: Problem solving on Hire Purchase

1.) A video game set can be bought on hire purchase by making a deposit of $190 and 12
monthly installments of $171 each.
A) Calculate the hire purchase cost of the video game set.

2.) A housewife purchased a video recorder with a cash price of $2,700 under hire purchase
terms. She paid down payment of 20% of the cash price and interest at 18% per annum
on the outstanding balance is charged. The amount payment is paid in 12 equals
monthly installments.
a. The hire purchase price
b. The amount of each monthly installment

Chapter 5 part 1: Consumer Arithmetic -CSEC Multiple Choice Questions

For each of these questions/statements, choose the option (A, B, C or D) that is TRUE.

1. A store charges 6% VAT on all sales. What is the total cost of a shirt marked at $30?

(A) $28.20 (B) $31.80 (C) $33.84 (D) $36.00

2. Jake buys a shirt marked at $80. He receives a 10 per cent discount. How much does he pay for the shirt?

(A) $54 (B) $70 (C) $72 (D) $74

3. The cost price of an article is $40 and the profit is 20 per cent of the cost price. What is the selling price
of the article?

(A) $40.20 (B) $48.00 (C) $50.00 (D) $60.00

4. After a 10% discount, an article is sold for $360. The price before the discount was?

(A) $ 36 (B) $324 (C) $392 (D) $400

5. The marked price of a stove was $520. A worker bought the stove on hire-purchase by making a down
payment of $100, and twelve monthly payments of $40 each. How much could she have saved if she had
bought the stove for the marked price?

(A) $ 40 (B) $ 60 (C) $100 (D) $140

Extra Practice: Exercise 5j page 189

Volume 1 –Mathematics, A Complete Course with CXC Questions.

24
 Module One
FORM (Consumer Arithmetic)

2
Summary:

1. Paying by hire purchase will mean that you pay significantly more for the item than paying by cash. An
item is purchased by paying a deposit (down payment) and then a specified number of regular
instalments. The title of the goods is transferred after the payment of all instalments as per the hire
purchase agreement.

2. The formula: Hire purchase= Down payment + (Monthly Installment x number of months)
or

Hire purchase= Down payment + outstanding balance + interest

or
Hire purchase= Down payment + amount payable

3. Down payment-also known as small deposit is an initial payment when something is being
bought on credit.
4. Monthly Installments-a fixed payment amount paid by the buyer each month for a specified
number of years.
5. Outstanding balance= the cash priced or marked price – down payment or deposit.
6. Amount payable is the outstanding balance plus interest

25
 Module One
FORM (Consumer Arithmetic)

2 Lesson 3

Answers/Solutions to the Activities:

Activity #1

Activity#2: 1. $2,242 2. (a) $3,088.80 (b) $212.40

1.Hire purchase= down payment + monthly installment × # of months
= $190 + $171 × 12
= $190 + $2,052
= $2,242
2. a.
(i) Deposit = x% of the cash price
20
= 100
× $2,700

= $540
(ii) outstanding balance = cash price – deposit
= $2,700 - $540
= $2,160
(iii) interest = x% of the outstanding balance
18
= 100 × $2,160

= $388.80

26
 Module One
FORM (Consumer Arithmetic)

2
(iv) amount payable = outstanding balance + interest
= $2,160 + $388.80
= $2,548.80
(v) hire purchase= deposit + amount payable
= $540 + $2548.80
= $3088.80

b. the amount of each installment

𝑎𝑚𝑜𝑢𝑛𝑡 𝑝𝑎𝑦𝑎𝑏𝑙𝑒
= #𝑜𝑓 𝑒𝑎𝑐ℎ 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑖𝑛𝑠𝑡𝑎𝑙𝑙𝑚𝑒𝑛𝑡

$2,548.80
= 12

= $212.40

Activity #3: Review questions

1. B 2. C 3. B 4. D 5. B

1.Exclusive of VAT= $30

106
The price of the shirt inclusive of VAT= $30 × 100

= .30 × 106
= $31.80 (b)
2. (i)discount on the shirt = 10% of the selling price
10
=100 × $80

= $8
(ii)Discounted price = selling price – the discount
= $80 - $8
= $72 (c)

27
 Module One
FORM (Consumer Arithmetic)

2
3.(i)profit = 20% of the cost price
20
=100 × 40

= $8
(ii)Selling price= cost price + profit
= $40 + $8
= $48 (b)

100
4. marked price= the discounted price × 90
100
= $360 × 90

= $4 × 100
= $400 (d)

5.(i)hire purchase= down payment + monthly installment × # of months

= $100 + $40 × 12
= $100 + $480
= $580
(ii) hire purchase price – marked price
$580 - $520
= $60(b) is how much she would’ve saved

Extra exercise: 5j on page 189. Check your answer on page 674 in theVolume 1 –
Mathematics, A Complete Course with CXC Questions.

28
 Module One
FORM (Consumer Arithmetic)

2 Lesson 3 Teacher: ___________

Name: ______________________ Class: ____________ Date:______________

Class work #2: Module summary questions. TO BE RETURNED TO YOUR TEACHER
Section 1: Multiple choice questions @ 2pts

29
 Module One
FORM (Consumer Arithmetic)

Section II: Problem solving: Show all working out

6.a) Write a 30% as a fraction in its lowest terms @1pt

b) Write 0.45 as a percentage @1pt

c) Write 57.5% as a decimal and as a fraction in its lowest terms. @2pts

7. Which is greater, and by how much:

a) 1.35% of $45 or b) 3/ 8 of $40? @2pts

Hence, _____________________ is greater by____________________.

8.A school has 350 students. 56% of them are girls. 28 girls are left-handed. What fraction of the
girls are left-handed? @2pts

30
 Module One
FORM (Consumer Arithmetic)

9. Jeffrey bought a sofa on hire purchase that cost $5,000 dollars. He made a 25% deposit of the
cost price. The rest was paid in $400 instalments for the following 12 months.
a.) What is the deposited amount? @1pt

b.) How much was paid after 6 months of instalments? @2pts

c.) What was the total amount paid back after 12 months? @2pts

d.) How much could Jeffrey had saved if he purchased the couch immediately instead of hire
purchase? @2

10. A freezer can be bought on hire purchase for a deposit of $70 and 6 monthly payments of
$19.

A) How much will it cost? @3pts

B) This is 15% more than the original cash price. What is the original cash price? @2pts

31
 Module One
FORM (Consumer Arithmetic)

Parent/Guardian Verification of Child/ren Work Form

Instructions: Parents/Guardians are asked to fill in the form below with accurate information
and return with assessments to be graded.

I, ___________________________, hereby verify that my child, _______________________,

(Parent/Guardian’s Name) (Child’s Name)
completed all required assessments given in this module and have returned them for grading.

Parent/Guardian Signature Date

____________________________ __________________________

Also, please provide the following information:

1. Address: ___________________________________________________________________
______________________________________________________________________________

2. Phone Number: _________________________________________________

3. Email (if any): ___________________________________________________________

32