Earnings and Deductions
Work out pay, overtime, bills and change, find a missing price or number of hours, see how many items you can afford, and use special offers.
In the exam for Edexcel IGCSE Maths 4MA1, Cambridge IGCSE Maths 0580, Cambridge O Level Maths 4024 · 55 real past-paper questions below
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Money In, Money Out
Money comes in as pay. Money goes out on bills and shopping. Almost every question uses one idea: how many times the price, then add or take away.
Formula
The hours are how long you work. The rate is the pay for one hour.
| Word | Meaning |
| Overtime | extra hours, paid at a higher rate |
| Time and a half | 1.5 × the normal rate |
| Gross pay | pay before anything is taken off |
| Net pay | pay after tax and other deductions are taken off |
| Bonus or commission | extra pay, a percentage of what you sell |
| Change | the note you pay with, minus the total |
Key idea
Time and a half on $14 an hour is an hour.
A Week's Pay with Overtime
Most pay questions start here: a normal rate for the first hours, and a higher rate for any extra hours. Work out the two parts separately, then add.
Sami is paid $16 an hour for the first 38 hours of a week. Each extra hour is paid 25% more. One week he works 44.5 hours. How much is he paid?
Worked example
- 1
— Find the overtime hours first: everything after the first 38 hours. That is 6.5 hours.
- 2
— The normal pay: 38 hours at the normal $16 rate.
- 3
— The overtime rate. 25% more means 100% + 25% = 125% of $16, so multiply by 1.25.
- 4
— The overtime pay: overtime hours × overtime rate.
- 5
— Add the normal pay and the overtime pay to get the week’s total pay.
Common mistake
Paying all 44.5 hours at the higher rate. Only the hours after the first 38 get the overtime rate.
Rule
Other ways round: rate for one hour = pay ÷ hours. Pay for a year = pay for one week × 52, because a year has 52 weeks.
Working Backwards: Overtime Hours
The 4-mark question gives the week’s pay and asks for the overtime hours. Take off the normal pay, then divide by the overtime rate.
Normal pay is $15 an hour for 38 hours. Overtime is time and a half. The week's pay is $795. How many overtime hours?
Worked example
- 1
— Normal pay first: 38 hours at the normal $15 rate.
- 2
— The overtime rate. Time and a half means 1.5 × the normal rate.
- 3
— Take the normal pay off the week’s pay. What is left was earned in overtime.
- 4
— Each overtime hour pays $22.50, so divide to count the hours: 10 hours.
Key idea
Check: . It matches the week’s pay.
Common mistake
Dividing the whole $795 by the overtime rate. Take off the normal pay first.
Bonus and Commission
Some jobs pay a fixed amount plus a percentage of what you sell. This extra is called a bonus or commission.
Formula
Basic pay is the fixed part (for example rate × hours). Sales is the value of everything sold. Write the percentage as a decimal: 4% = 0.04.
Exams often give the total pay and ask for the sales. Lina is paid $11 an hour plus 4% of the value of what she sells. She works 6 hours and is paid $90. What was the value of her sales?
Worked example
- 1
— The basic pay: 6 hours at $11 an hour.
- 2
— Take the basic pay off the total. What is left, $24, is the bonus.
- 3
— The bonus is 4% of the sales. Divide by 4 to find 1% of the sales: $6.
- 4
— 100% of the sales is 100 times 1%. So she sold $600 of goods.
- 5
— Check: 4% of $600 is $24, and 66 + 24 = 90. It matches the pay in the question.
Key idea
Forwards is quicker: basic pay $2000 plus 3% of $15 000 sales is .
Total Cost and Change
The most common question: add up a list of costs, then find the change from a note.
You buy 3 notebooks at $2.45 each and 2 pens at $1.80 each. You pay with $20.
Worked example
- 1
— The notebooks: number bought × price of one, so 3 lots of $2.45.
- 2
— The pens, the same way: 2 lots of $1.80.
- 3
— Add the two amounts. This is the total cost of the shopping.
- 4
— Change is the note minus the total. It is less than $20, so it makes sense.
Common mistake
On a bill with free minutes, only the extra minutes cost money. $15 a month plus $0.08 a minute after 200 free: for 260 minutes you pay for 60, so .
Working Backwards: One Price
The 3- or 4-mark question gives the total, or the change, and asks for the price of one item. Take off everything you know, then divide.
Omar buys 3 sandwiches at $2.65 each, a juice for $1.40 and 4 cakes that cost the same. He pays with a $20 note and gets $4.25 change. What does one cake cost?
Worked example
- 1
— Find what he spent. The note minus the change is the total cost.
- 2
— The sandwiches: number bought × price of one.
- 3
— Add the juice. Now you have everything you know.
- 4
— Take the known costs off the total. What is left is the price of the 4 cakes together.
- 5
— The 4 cakes cost the same, so divide by 4 to get the price of one.
Key idea
Check by adding back: , and 20 − 15.75 = 4.25. It matches the change.
Common mistake
Taking the change off the known costs, or dividing by every item bought. Divide only by the number of the missing item.
How Many Can You Buy?
The 3-mark question: you have a budget and want as many as you can. Divide, then round DOWN.
You have $10. You buy a notebook for $2.50 and as many pencils at $0.85 as you can.
Worked example
- 1
— Pay for the notebook first. The money left is what you can spend on pencils.
- 2
— Divide the money left by the price of one pencil to see how many fit.
- 3
— Round DOWN. You cannot buy part of a pencil, and 9 would cost more than you have.
- 4
— If they ask for the change, first find what the 8 pencils cost.
- 5
— The change: money left minus the cost of the pencils.
Common mistake
Rounding 8.82 up to 9. Nine pencils cost $7.65, more than you have.
Key idea
Needing ENOUGH is the other way round. 5 kg of rice in 0.75 kg bags: , so buy 7 bags.
Special Offers
The 4-mark question: an offer like pay for 2, get 1 free. Split the items into offer groups first.
Cans cost $0.90. Pay for 2, get 1 free. You want 20 cans.
Worked example
- 1
— Split the 20 cans into offer groups of 3 (2 paid, 1 free): 6 full groups and 2 cans left over.
- 2
— In each full group you pay for only 2 cans, so 12 paid cans.
- 3
— The 2 left-over cans are not in a full group, so you pay for them too.
- 4
— Number of cans you pay for × the price of one can.
Common mistake
Taking a third off all 20 cans. The 2 cans outside a full group are paid in full.
Key idea
An offer like 20% off uses the Percentage Increases and Decreases lesson. Work out each offer, then compare.
Best Buy: Compare the Price of One
Shops sell the same thing in different sizes. To find the better value, work out the price of the same amount, such as 1 kg, for each.
Rice comes in a 2 kg bag for $3.40 or a 5 kg bag for $8.25. Which is better value?
Worked example
- 1
— The small bag: price ÷ kilograms gives the price of 1 kg, $1.70.
- 2
— The big bag, the same way: $1.65 for 1 kg.
- 3
— The 5 kg bag is better value, because each kilogram costs less. Say which bag AND give both prices.
Common mistake
Choosing the 2 kg bag because $3.40 is less. It is cheaper only because you get less rice. Compare the price of 1 kg.
Key idea
Two offers? Work out the cost of the same number of items at each shop. Tins at $1.20, buy one get one half price, against 6 tins for $6.30. For 6 tins the first shop is , so it is cheaper.
Which Method? Read the Question
Look at what the question asks you to find.
| You see | You do |
| Change from a note | add the costs, take from the note |
| Normal and overtime hours | pay each part at its own rate, then add |
| Pay plus % of sales | basic pay + percentage × sales |
| Find the overtime hours or one price | take off what you know, then divide |
| As many as you can | divide, round down |
| Enough bags or tins | divide, round up |
| Pay for 2, get 1 free | count full groups of 3 |
| Which is better value? | find the price of 1 kg (or 1 item) for each |
| % off, or a pay rise of % | Percentage Increases and Decreases |
| Bought, sold, profit | Profit and Loss |
Key idea
Check your answer makes sense: change is less than the note, and a count of items is a whole number.
Key idea
Show every line. In a 3- or 4-mark money question most of the marks are for the working, so a slip at the end still scores.
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