problem 1: Computer World, an electrical and IT warehouse decreased the price of 32” LED monitors from £599.99 to £399.99. Compute the percentage reduction in price to three decimal places.

problem 2: The cost of hiring a bus from London to Manchester for a day is £250.00. The breakdown of the cost into labor, fuel, overheads and profit is in the ratio of 3:4:2:1. How much of the cost of hiring was for:

a) Profit
b) Overheads

problem 3: Mark is a commercial manager, working for an engineering company. He receives a basic salary of £46,000 per year and a bonus of 5%. His tax-free allowance is £8,105 for the current tax year. The basic rate of tax is 20%, up to £34,370 above the tax allowance and 40% from £34,371. Compute:

a) Gross pay for the year.
b) Amount of tax he pays in this year
c) Net pay for the year.

problem 4: Solve the given simultaneous equations by using algebra:

6x + 4y = 48
x + 9y = 63

problem 5: GPW Wholesalers give a discount of 5% of an invoice if it is paid on time and a further discount of 1/30 of the invoice for early payment in 10 days.

Compute the fraction of the invoice which is deducted for early payment.

problem 6: The number of bicycles generated by Strider Cycles over a six-month period was as shown below:

a) Illustrate the above table as a line graph.

b) Compute the mean number of bicycles produced.

problem 7: Dawn invested £9,000 in an Instant Access Savings Account. The account attracts an interest rate of 2.7% per annum. Tax is deducted from the interest at a rate of 20%.

a) Compute the net rate of interest paid into the account.

b) Draw a table to show the amount of money in the account at the end of each year, for a ten-year period.

c) Draw a curve to exemplify the growth of this investment.

d) If no money is withdrawn from the account:

• How much is in the account after 7 years.
• Compute the cumulative rate of growth after 9 years.

problem 8: The money markets affect the spot and forward rates for currency exchange on a daily basis. In case of someone owning property in Europe, transferring money into a foreign bank account at the rate applicable at the time of transfer is important. On a specific day the sterling rates of exchange for Euros are:

Closing market rate: 1.2275 – 1.2360
Previous market rate: 1.2136 – 1.2245

James visited his bank on the previous day to transfer £16,000 sterling into his Spanish bank account.

a) What is the maximum number of Euros he can expect to be credited to his account in Spain?
b) What is the least number of Euros which would have been credited?
c) Express the difference between these two figures in a) and b) as a percentage difference between the two rates.
d) If the bank charges £30 to make a transfer, what is the true range of exchange rates which will apply?