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HS 421 (Version B) Financial Math 1st SemesterSelf Check, 1-3Work problems 1, 5, 7, and 9 on pages 97–98. Check your answers in the back of the book. Ifyou got the answers correct and understand the section, proceed to the next section. If you hadsome difficulty with the section, review the reading assignment as well as the given examples.Section 1-4: PieceworkSome manufacturers use the piecework method of paying employees. T his method paysemployees for performance. In other words, employees will make more money if they producemore products. For example, a cake decorator may not be paid by the hour but rather by thenumber of cakes decorated. This type of pay scale encourages employees to produce more.Reading Assignment, 1-4Read section 1-4 on page 99, including the example.Self Check, 1-4Work problems 3, 5, 7, and 9 on page 100. When you finish, check your answers in the back ofthe book. If you got the answers correct and understand the section, proceed to the nextsection. If you had some difficulty with the section, review the reading assignment as well asthe given examples.Section 1-5: SalaryA salary is a fixed amount of money that an employee earns for a specific period of time. Theconcept is the same as hourly rate; however, the period of time is usually a year. The salarycan be paid monthly, every two weeks, or twice a month.Reading Assignment, 1-5Read section 1-5 on page 101.As you read, it is important to note the difference between semimonthly (twice a month) andbiweekly (every two weeks). Sometimes these two methods of payment are misunderstood, butthey are not the same. Biweekly payments are made every two weeks, with 26 payments madein the course of a year (52 weeks). Semimonthly payments are made twice a month (usuallythe first and the fifteenth days of the month), with 24 pa yments in the course of a year (12months).7Louisiana High School Correspondence Courses, P. O. Box 2751, Baton Rouge, LA 70821-2751

HS 421 (Version B) Financial Math 1st SemesterExample: 50,000 annual salary would be divided as follows:MonthlySemi-monthlyBi-weeklyWeekly 50,000/12 4,166.67 per month 50,000/24 2,083.33 semi-monthly 50,000/26 1,903.28 50,000/52 961.54Self Check, 1-5Review the given example and work problems 3, 7, 9, a nd 11 on pa ge 102. If you had somedifficulty with the section, review the reading assignment as well as the given examples.Section 1-6: CommissionMany people working in sales work on commission. They are paid a set amount of money foreach sale made or a set percentage of the total sale. Some sales employees work on a s alaryplus commission. They earn a set salary regardless of their sales and an additional amount ofmoney based on their sales activity. Others work strictly on commission.Reading Assignment, 1-6Read section 1-6 on page 103, including the example.Self Check, 1-6Work problems 7, 11, 13, 17, and 19 on pages 104–105. When you finish, check your answersin the back of the book. If you got the answers correct and understand the section, proceed tothe next section. If you had some difficulty with the section, review the reading assignment aswell as the given examples.Section 1-7: Graduated CommissionAnother method of paying an employee a commission is based on a graduated scale. T hisemployee’s rate of commission would increase as sales increased. For example, a co mputersales representative may earn 3% on the first 6000 of monthly sales and 4% on any additionalsales over 6000.It is important to note that you may not receive the higher rate on the entire amount. Forexample, consider a computer sales clerk from the store described above. If the monthly salestotaled 8000, the clerk would receive 3% on the first 6000 and 4% on the additional 2000.8Louisiana High School Correspondence Courses, P. O. Box 2751, Baton Rouge, LA 70821-2751

HS 421 (Version B) Financial Math 1st Semester( 6000 .03) ( 2000 .04) 180 80 260 total commissionReading Assignment, 1-7Read section 1-7 on page 106, including the example.Self Check, 1-7Work problems 3, 5, 7, and 9 on page 107. When you finish, check your answers in the back ofthe book. If you got the answers correct and understand the section, proceed to the LessonAssignment. If you had some difficulty with the section, review the reading assignment as wellas the given examples.END OF LESSON 1Lesson Assignment 1:Part I: Multiple Choice. Choose the correct answer from the options given, and write thecorrect letter on the blank provided. You will transfer these answers to your Lesson 1 AnswerSheet before you mail in your assignment. (4 points each)1. Stuart Goldman works at King’s Golf Spot. He works 11 hours a week and earns 8.25 per hour. What is Goldman’s straight-time pay for each week?A. 90.75B. 80.75C. 80.25D. 90.252. Malik Montez works as a lifeguard earning 8.50 an hour for 20 hour s a week.What is Montez’s straight-time pay for the week?A. 170.00B. 160.00C. 1,600.00D. 1,700.003. Samantha Hayes worked 38.75 hours at Tech Pro. She is paid 14.625 an hour.What is her straight-time pay?A. 582.454B. 566.719C. 676.353D. 565.2559Louisiana High School Correspondence Courses, P. O. Box 2751, Baton Rouge, LA 70821-2751

HS 421 (Version B) Financial Math 1st Semester4. Twana Thomas is paid 10.50 an hour for a regular 40-hour week. She earns timeand a half if she works overtime. This week Thomas worked her regular 40 hoursplus 8½ hours of overtime. What is her total pay?A. 553.88B. 420.00C. 522.50D. 456.005. Phyllis Doran worked at Symmes Medical Center for 7½ hours on M onday andfrom 8:00 A.M. until 1:00 P.M. on Tuesday. What is the total number of hours sheworked?A. 13½ hoursB. 11½ hoursC. 10½ hoursD. 12½ hours6. Justin Joseph presses shirts at All Day Cleaners. H e gets paid 0.37 p er shirt.Last week he pressed 649 shirts. What was his total pay?A. 240.00B. 240.13C. 295.25D. 220.257. Robin Cline is a computer analyst. Her annual salary is 52,789. What is hermonthly salary?A. 3,444.22B. 4,399.08C. 4,100.00D. 4,700.878. Sasha Story’s salary for a f our-week period in July was 5,824. W hat was herweekly salary?A. 1,456B. 1,546C. 1,756D. 1,6569. Briana Driscoll sells real estate. She earns a 6 pe rcent straight commission oneach sale. She recently sold a house for 355,000. What was her commission?A. 23,300B. 21,300C. 20,900D. 23,50010Louisiana High School Correspondence Courses, P. O. Box 2751, Baton Rouge, LA 70821-2751

HS 421 (Version B) Financial Math 1st Semester10. Quincy Jackson sells motorcycles. He earns a 10 percent commission on the first 5,000 and 15 percent on all sales over 5,000. How much commission will heearn on 19,000 in sales?A. 1,900B. 2,600C. 2,400D. 2,850 Print the Lesson Assignment 1 worksheets. Transfer your multiple choice answers to the answer sheets that you will submitfor grading. Make sure that your letters are neatly written. Check your answers to make sure that you transferred them correctly. Complete the assignment following the directions for each section. Remember thaton some of the sections, you may earn partial credit. However, to do so, you mustneatly show all of your work. Check over your work. Make yourself a copy of your lesson before you mail it to us for grading. Mail your lesson assignment to LHSCC at P. O. Box 2751, Baton Rouge, LA70821-275111Louisiana High School Correspondence Courses, P. O. Box 2751, Baton Rouge, LA 70821-2751

HS 421 (Version B) Financial Math 1st SemesterLESSON 2: Net IncomeLesson ObjectivesAfter you have completed this lesson, you should be able to:1. Use tables to find the amount withheld for federal income tax2. Compute the state tax on a straight percent basis and on a graduated income basis3. Compute the amount of income withheld for social security and Medicare taxes4. Compute the deduction for group insurance5. Compute the net pay per pay periodKey Termsnet incomedeductionsdependentsearnings statementpersonal exemptionsLesson IntroductionIn this unit, you will study methods of calculating net income. Net income is the amount ofmoney that is actually taken home after deductions are made for taxes, insurance, and savingsdeductions.Section 2-1: Federal Income TaxEmployees pay a specified amount of their earnings to the federal government. This incometax is based on the amount of money earned. The Internal Revenue Service, the governmentaldepartment charged with the responsibility of collecting income taxes, provides tax tables toemployers so that they will know the correct amount of earnings to deduct.Caution: This section is relatively easy. However, make sure that you are using the correct taxtable as well as the correct number of deductions.Reading Assignment, 2-1Read section 2-1 on page 116. This section will explain the proper method of using a tax tableto calculate the amount of federal income tax. Review the example box on page 116 as well.Self Check, 2-1Work problems 9, 13, 15, a nd 17 on pa ges 117–118. Check your answers in the back of thebook12Louisiana High School Correspondence Courses, P. O. Box 2751, Baton Rouge, LA 70821-2751

HS 421 (Version B) Financial Math 1st SemesterSection 2-2: State Income TaxThe amount paid in state taxes varies from state to state. One method of calculating the amountof state income tax is using a straight percentage. Before the amount of the tax is calculated,however, you have to calculate the amount of taxable wages. B ased on t he differentcircumstances in family size, states provide for personal exemptions. T his is an amount ofmoney that basically you can earn tax free to support yourself and additional family members(wife, children, and other dependents)Reading Assignment, 2-2Read section 2-2 on p ages 119–120, including the example. Look at the information in theyellow circle on page 119 listing the specific amounts for personal exemptions.Self Check, 2-2Work problems 7, 9, 11, and 13 on pa ges 120–121. C heck your answers in the back of thebook.Section 2-3: Graduated State Income TaxAnother method that is used by states to calculate state income tax is by using a graduatedscale. That is, the rate varies based on your level of income. As you earn more money, you areplaced in a higher tax bracket. This means that you will pay a higher rate of taxes. This type ofgraduated system is calculated similar to the method used in lesson 1 to calculate graduatedcommission.Reading Assignment, 2-3Read section 2-3 on pages 122–123, including the example. Notice the important informationin the yellow box. This box gives an example of the rate of tax for each level of income.Self Check, 2-3Work problems 1, 3, and 5 on page 123. Check your answers in the back of the book.Section 2-4: Social Security and Medicare TaxesAnother mandatory deduction from an employee’s earnings is for Social Security and Medicaretaxes. The Social Security Administration provides benefits for retirement, disability, survivors(dependents still living when a care provider dies), supplemental security income, and13Louisiana High School Correspondence Courses, P. O. Box 2751, Baton Rouge, LA 70821-2751

HS 421 (Version B) Financial Math 1st SemesterMedicare health benefits. If you would like additional information on the services provided,you can go to their Web site at www.ssa.gov. T he Social Security tax and Medicare tax areboth calculated by using a straight percent method. However, two things you must note: (1)there is a cap (maximum amount) on the amount paid for Social Security, and (2) the rate foreach tax is different.Reading Assignment, 2-4Read section 2-4 on page 124. The current rates for each of the taxes are given in the openingparagraph. Read the example on that page as well.Self Check, 2-4Work problems 7, 9, and 11 on page 125. Check your answers in the back of the book.Section 2-5: Group InsuranceAs a b enefit to employees, an employer may provide health insurance at a lower cost than isotherwise available. This benefit varies from company to company. Some companies providecoverage for the employee at a low rate as well as the employee’s family members (spouse andchildren). It is provided at a l ower rate because the company actually pays a p ortion of thepremium. A lso, large companies get discounted group rates and pass the savings to theiremployees. The employee’s portion of the premium is deducted from wages and salary earned.The total bill (100%) must be paid. The percent is easy to calculate. If the company pays 70%,then the individual must pay the remaining 30%. L ikewise, if the company pays 90%, theemployee is responsible for 10%. Remember, the two portions must add up to 100%.Reading Assignment, 2-5Read section 2-5 on page 126, including the example.Self Check, 2-5Work problems 3, 5, and 7 on page 127. Check your answers in the back of the book.Section 2-6: Statement of EarningsWhen an employee receives a p aycheck, an earnings statement is attached to explain the netpay. The earnings statement will give the gross pay, list all of the deductions, and indicate thenet pay.14Louisiana High School Correspondence Courses, P. O. Box 2751, Baton Rouge, LA 70821-2751

HS 421 (Version B) Financial Math 1st SemesterReading Assignment, 2-6Read section 2-6 on pages 128–129, including the example.Self Check, 2-6Work problems 3, 5, and 7 on pages 130–131. Check your answers in the back of the book.END OF LESSON 2Lesson Assignment 2Part I: Multiple Choice. Choose the correct answer from the options given, and write thecorrect letter on the blank provided. You will transfer these answers to your Lesson 2 AnswerSheet before you mail in your assignment. (4 points each)Figure 2.1. Use this table with the question(s) below, as needed.PERSONAL EXEMPTIONSSingle – 1,500Married – 3,000Each Dependent – 7001. Mona Elliott’s gross pay is 33,500 a year. The state income tax rate is 3 percentof taxable wages. Elliott takes a single exemption for herself. Using Figure 2.1,how much is withheld a year for state income tax?A. 890B. 980C. 960D. 9902. Lourdes Sanchez takes a single exemption for herself and one personal exemptionfor her son, Claudio. Using Figure 2.1, what is the total amount of exemptions?A. 2,300B. 2,400C. 2,200D. 2,0003. Liana Lytle’s gross pay is 26,300. She takes a married exemption of 3,000.Her state income tax rate is 5.5 percent. How much will she pay in state tax?A. 1,281.50B. 1,982.00C. 1,344.80D. 1,821.2515Louisiana High School Correspondence Courses, P. O. Box 2751, Baton Rouge, LA 70821-2751

HS 421 (Version B) Financial Math 1st Semester4. Jack Salomon’s gross weekly pay is 498. H is earnings to date for the year total 13,446. What amount is deducted from his pay this week for Medicare, which istaxed at 1.45 percent?A. 9.00B. 8.65C. 2.43D. 7.225. Dalton Alexander’s gross weekly pay is 576. H is earnings to date for the yeartotal 13,824. What amount is deducted from his pay per week for Medicare,which is taxed at 1.45 percent?A. 6.00B. 19.95C. 8.35D. 15.606. Lucinda Martinez is employed at Red Balloon Books. S he has family medicalcoverage through the group medical plan that Red Balloon Books provides for itsemployees. The annual cost of Martinez’s family membership is 3,900. T hecompany pays 50 pe rcent of the cost. H ow much does she pay annually formedical insurance?A. 1,950B. 2,900C. 1,650D. 1,0007. Arnel Green is employed at Market Systems Inc. S he has family medicalcoverage through the group medical plan that Market Systems provides for itsemployees. T he annual cost of Green’s family membership is 5,200. T hecompany pays 49 pe rcent of the cost. H ow much does she pay annually formedical insurance?A. 2,345B. 2,652C. 9,888D. 3,5678. Charles Benton’s gross weekly salary is 421. His weekly federal withholding is 51.18. The Social Security tax is 6.2 percent of the first 84,900. The Medicaretax is 1.45 percent of gross pay. The state tax is 1.5 percent of gross pay. Eachweek he pays 12.40 for medical insurance. What are Benton’s total deductions?A. 108.90B. 102.10C. 110.90D. 138.0916Louisiana High School Correspondence Courses, P. O. Box 2751, Baton Rouge, LA 70821-2751

HS 421 (Version B) Financial Math 1st SemesterFigure 2.2. Use this table with the question(s) below, as needed.Graduated Tax TableTaxable WagesTax RateFirst 2,0002.0%Next 4,0003.0%Next 4,0004.5%Over 10,0006.0%9. Amanda Sabino’s taxable income is 20,900. Use Figure 2.2 to find out howmuch she’ll pay in state tax.A. 880B. 560C. 1,000D. 99410. Doug Wright’s taxable income is 51,900. Using Figure 2.2, how much will hepay in state tax if the tax rate is 3 percent?A. 3,400B. 1,557C. 1,234D. 3,488 Print the Lesson Assignment 2 worksheets. Transfer your multiple choice answers to the answer sheets that you will submitfor grading. Make sure that your letters are neatly written. Check your answers to make sure that you transferred them correctly. Complete the assignment following the directions for each section. Remember thaton some of the sections, you may earn partial credit. However, to do so, you mustneatly show all of your work. Check over your work. Make yourself a copy of your lesson before you mail it to us for grading. Mail your lesson assignment to LHSCC at P. O. Box 2751, Baton Rouge, LA70821-275117Louisiana High School Correspondence Courses, P. O. Box 2751, Baton Rouge, LA 70821-2751

HS 421 (Version B) Financial Math 1st SemesterLESSON 3: RecordkeepingLesson ObjectivesAfter completing this lesson, you should be able to:1. Compute average monthly expenditures2. Use records of past expenditures to prepare a monthly budget3. Compare budgeted amount to actual spendingKey Termsbudgetexpendituresfixed expenseliving expensesLesson IntroductionIt is important to keep receipts and accurate records of expenditures in order to keep a budget.A budget is a financial plan. This plan helps you to see how much money you are makingcompared to how much money you are spending. Through the use of a good budget, it is easierto see where expenditures can be cut in order to save money or just allow you to have enoughmoney to pay for essentials. In this lesson, you will compute average expenditures and usethese figures to create a budget.Section 3-1: Average Monthly Exp

Financial Mathematics, First Semester. Textbook . Walter H. Lange and Temoleon G. Rousos. Mathematics with Business Applications. Fifth edition. New York: Glencoe McGraw/Hill Company, 2004. ISBN: 0-07-829806-7 . The textbook was carefully selected to provide you with a