PREMIER CURRICULUM SERIES Based on the Sunshine State Standards for Secondary Education, established by the State of Florida, Department of Education CONSUMER MATHEMATICS Author: Leon Kriston Copyright 2009 Revision Date:12/2009 INSTRUCTIONS Welcome to your Continental Academy course. As you read through the text book you will see that it is made up of the individual lessons listed in the Course Outline. Each lesson is divided into various sub-topics. As you read through the material you will see certain important sentences and phrases that are highlighted in yellow (printing black & white appears as grey highlight.) Bold, blue print is used to emphasize topics such as names or historical events (it appears Bold when printed in black and white.) Important Information in tables and charts is highlighted for emphasis. At the end of each lesson are practice questions with answers. You will progress through this course one lesson at a time, at your own pace. First, study the lesson thoroughly. (You can print the entire text book or one lesson at a time to assist you in the study process.) Then, complete the lesson reviews printed at the end of the lesson and carefully check your answers. When you are ready, complete the 10-question lesson assignment at the www.ContinentalAcademy.net web site. (Remember, when you begin a lesson assignment, you may skip a question, but you must complete the 10 question lesson assignment in its entirety.) You will find notes online entitled “Things to Remember”, in the Textbook/Supplement portal which can be printed for your convenience. All lesson assignments are open-book. Continue working on the lessons at your own pace until you have finished all lesson assignments for this course. When you have completed and passed all lesson assignments for this course, complete the End of Course Examination on-line. Once you pass this exam, the average of your grades for all your lesson assignments for this course will determine your final course grade. If you need help understanding any part of the lesson, practice questions, or this procedure: Click on the “Send a Message to the Guidance Department” link at the top of the right side of the home page Type your question in the field provided Then, click on the “Send” button You will receive a response within ONE BUSINESS DAY CONSUMER MATH About the Author… Leon Kriston is a true Midwesterner. He was a Chicago suburb resident whose education was also received in the mid west. He has a B.S. in Mathematics from Purdue University and a J.D. degree from Illinois Institute of Technology / Chicago-Kent College of Law. Mr. Kriston taught for 30+ years at Bloom Township High School, where he became a Dean. He also taught both Mathematics and Law courses at Prairie State and South Suburban colleges. While he did all this, Mr. Kriston managed a career in the practice of Real Estate Law. He then retired and moved to South Florida where he currently resides and tutors math students. Mathematics: Consumer Math by Leon Kriston Copyright 2008 Home School of America, Inc. ALL RIGHTS RESERVED For the Continental Academy Premiere Curriculum Series Course: 1205370 Published by Continental Academy 3241 Executive Way Miramar, FL 33025 3 CONSUMER MATH 4 CONSUMER MATH TABLE OF CONTENTS LESSON 1: JOB-RELATED MATHEMATICS....................................................................7 Hourly Pay/ Overtime Pay......................................................................................................... Weekly Pay/ Time Card............................................................................................................. Salary / Commission.................................................................................................................. LESSON 2: PERSONAL INCOME/TAXES.........................................................................15 Federal Tax ................................................................................................................................ Review ....................................................................................................................................... State Tax .................................................................................................................................... Social Security/ Medicare Taxes ............................................................................................... Health Insurance ........................................................................................................................ LESSON 3: RETIREMENT...................................................................................................25 Answers to Practice Problems ................................................................................................... LESSON 4: BUDGETING......................................................................................................29 Recording Expenditures............................................................................................................. Budget/Budgeting ...................................................................................................................... LESSON 5: PURCHASE AND SALE OF GOODS AND SERVICES ..............................33 Sales Tax.................................................................................................................................... Unit Price ................................................................................................................................... Markdowns / Markups............................................................................................................... LESSON 6: COST OF CREDIT ............................................................................................41 Charge Accounts........................................................................................................................ Finance Charges......................................................................................................................... Loans.......................................................................................................................................... LESSON 7: BANKING SERVICES......................................................................................49 Checking Accounts.................................................................................................................... Savings Accounts....................................................................................................................... LESSON 8: INVESTMENTS .................................................................................................63 Certificate of Deposit................................................................................................................. Stocks/ Stock Dividends ............................................................................................................ Bonds ......................................................................................................................................... LESSON 9: INSURANCE ......................................................................................................75 Health/Long Term Care............................................................................................................. Term Life Insurance................................................................................................................... LESSON 10: HOUSING AND AUTOMOBILE RENTAL-OWNERSHIP-LEASING ...83 Home Rental .............................................................................................................................. Home Ownership ....................................................................................................................... Answers to Practice Problems ................................................................................................... Automobile Purchase / Ownership ............................................................................................ Leasing a Vehicle....................................................................................................................... Renting a Vehicle....................................................................................................................... COURSE OBJECTIVES 98 5 CONSUMER MATH 6 CONSUMER MATH PERSONAL FINANCE LESSON 1 JOB-RELATED MATHEMATICS Hourly Pay/ Overtime Pay In order to calculate your straight-time pay or the total amount you earn for a week: multiply your hourly rate times the hours worked. Example: You have worked 35 hours and you make $8.35 an hour $8.35 hourly rate x 35 hours $8.35 x 35 = $292.25 Straight-time pay = your hourly rate of pay times the hours worked PRACTICE 1 You have worked 35 ½ hours and your hourly rate of pay is $10.75; calculate your straight-time pay. PRACTICE 2 You have worked 39 ¾ hour and your hourly rate of pay is $12.80; calculate your straight-time pay. HINT: For the ½ hour in Problem #1 you should convert the ½ fraction to a decimal. To convert ½ to a decimal, divide the numerator of the fraction (1) by the denominator (2) ??????? The problem is now 35.5 hours x $10.75 CHECK YOUR ANSWERS FOR PRACTICE 1 & 2 AT THE END OF LESSON 1 7 CONSUMER MATH Overtime Pay Overtime pay = overtime rate of pay times the number of hours of overtime worked. Any hours over 40 hours are considered overtime hours. Example: You worked 43 hours: 43 – 40 = 3