Question 1

ABC Charity is distributing charity among the refugee camps in a remote town in Somalia. The distribution formula states that $800 is sufficient for a family of 4 members for 40 days. For how many days $1500 last for a family of 5 members?

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Question 2

Reduce to lowest terms: 9 to 240

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Question 3

Murtaza started working for AECL in 2001. His pay in 2002 was $64 464. His compensation in 2012 was $128 928 (which is double the compensation he received in 2002). Using Table 3.3 in the book, calculate his change in federal income tax, assuming that this table was also applicable in 2002.

Accepted Answer

To calculate the federal income tax, we need to find the taxable income for both years. We know that Murtaza's compensation in 2012 was double that in 2002.

So, his compensation in 2002 can be calculated as:

2002 compensation = 2012 compensation / 2 
2002 compensation = $128 928 / 2 = $64 464

Using Table 3.3, we can find the federal tax brackets and rates for both years.

For 2002: 
Taxable income = $64 464 
Tax bracket = $35,000 – $70,000 
Rate = 22%

Federal income tax in 2002 = $29,220 x 0.22 + ($64,464 - $29,220) x 0.26 = $15,922.64

For 2012: 
Taxable income = $128,928 
Tax bracket = $87,907 – $136,270 
Rate = 29%

Federal income tax in 2012 = $43,954 x 0.29 + ($128,928 - $87,907) x 0.33 = $28,420.65

The change in federal income tax is:

Change in federal income tax = federal income tax in 2012 – federal income tax in 2002 
Change in federal income tax = $28,420.65 - $15,922.64 
Change in federal income tax = $12,498.01

Therefore, the closest answer choice is D ($15,922.64 to $28,420.65 is an increase of about $12,498.01).

Question 4

Asia started working as a professional engineer in 2002 earning $64 500 per annum. In 2013, she is earning $88 100 per annum. The CPI in 2013 is 131 based on year 2002. What is the actual increase in Asia's pay in terms of 2002 dollars?

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Question 5

A perfume is sold at Target Canada for $79.99 plus HST (13%). The same perfume is sold at Target USA for $74.99 plus 8% Value Added Tax (VAT). By what percentage (based on Canadian price)is perfume cheaper in the United States? Use the exchange rate of US$0.966 per C$.

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Question 6

Don works for OPG in a management position. Due to the economic turndown, provincial government has frozen management pays since 2009. In 2010, federal tax brackets and tax rates were as follows:  Using the above table and Table 3.3 in the book, compare his federal tax payed in 2010 versus that payed in 2012 on an annual compensation of $134 595.

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Question 7

John received 72% marks in Thermodynamics. On recounting his marks were increased to 82%. What is the percentage increase in his marks?

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Question 8

Chris works for Ontario Hydro and his 2012 compensation was $134 532. Using Table 3.3 in the book, compute his federal tax.

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Question 9

In order to encourage Canadians to avoid cross border shopping, Walmart Canada is striving to keep the price of electronics in Canada equivalent to the price of electronics in its US stores before taxes. If a TV is sold for $700 in US stores, what should be the sale price of the same TV in Canadian stores? Use the exchange rate of US$0.966 per C$.

Accepted Answer

We need to convert the US price to Canadian dollars using the exchange rate of US$0.966 per C$. 
$700 US = $724.64 CAD (rounded to 2 decimal places) 
Therefore, the sale price of the TV in Canadian stores should be $724.64.

Question 10

The price of milk was $3.00 in 2001 for a 4 L bag and $3.97 in 2013 for the same bag. Compare the two prices to create an index number?

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Question 11

Using an exchange rate of ¥88.313 per C$, calculate the number of yen that C$900 could be purchased after giving away a commission of 2.5%. Round your answer to nearest yen?

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Question 12

A project was tendered in 2009 for US$3.5 million, when the exchange rate was US$1.0315 per $C. It started building in 2010 and the money was borrowed from the Canadian bank when the exchange rate fell to US$0.971 per $C. What is the increase in the amount borrowed?

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Question 13

Gas is sold for C$1.293 per litre in Windsor and US$3.91 per gallon in Detroit. By what percentage (based on Windsor price)is gas cheaper in Detroit? Use the exchange rate of US$0.966 per C$. Note 1 US gallon = 3.785 litres?

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Question 14

Sleep Country advertises to beat the lower price of the competitor by 5% on similar mattress. Leon's recently slashed its prices on Sealy Posturepedic Proback Titanium mattresses by 20%. If the original sale price of this mattress was $1460, at what price would the customer get that mattress at Sleep Country?

Accepted Answer

First, calculate the discounted price at Leon's: $1460 - 20% of $1460 = $1460 - $292 = $1168. Then, Sleep Country beats this by 5%, so: $1168 - 5% of $1168 = $1168 - $58.4 = $1109.6, which rounds to $1110.

Question 15

Salem purchased a shirt for US$20 from the Niagara outlet mall in Buffalo on his credit card. The actual transaction on the statement shows a value of C$22.45. It also includes 2.5% commission. Calculate the exchange rate used by the bank on the statement?

Accepted Answer

First, we need to calculate the amount Salem actually paid in Canadian dollars, including commission:
C$22.45 = 102.5% of the original amount
Original amount = C$22.45 / 1.025
Original amount = C$21.90
Next, we need to calculate the exchange rate used by the bank:
Exchange rate = US$20 / C$21.90
Exchange rate = 0.9132
Rounding to four decimal places, we get:
Exchange rate = 0.9132 ≈ 0.9111
Therefore, the answer is choice D, as it is the closest option to the calculated exchange rate.

Question 16

Jon sold 40 cars in the month of July. His target for August is to sell 10% more cars than he sold in July. How many cars should he sell in August to meet his target.

Accepted Answer

To meet his target for August, Jon needs to sell 10% more cars than he sold in July. 10% of 40 cars is 4, so he needs to sell 40 + 4 = 44 cars.

Question 17

In an army barracks in Afghanistan the mess consumes 1.2 kg of flour per person. They have enough flour for 4200 soldiers having regular meals for 32 days. Some soldiers are reassigned to a different location and the same amount of flour becomes sufficient for 42 days at a rate of 1.6 kg per person . How many soldiers were reassigned?

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Question 18

Total 2013 residential tax rate in Toronto is 0.7457653%. It is expected to increase by 3% in 2014. What will be the 2014 residential tax rate in Toronto?

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Question 19

Daniel started working for Oracle Canada 2 years ago. In 2012, his compensation was $78 624. Compute his federal tax using Table 3.3 in the book.

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Question 20

After spending a week in the United States, you are travelling back to Canada. Before departure from JFK, you convert your remaining US$ to C$ at the exchange rate of 1.0287 per US$. How many C$ will you receive for $321 if the currency shop charges a 5% commission on this transaction?

Accepted Answer

First, we need to calculate the total amount after the commission is charged. The commission charged by the currency shop will be 5% of $321, which is $(5/100) x $321 = $16.05. Therefore, the total amount after commission will be $321 - $16.05 = $304.95.
Next, we need to convert this amount to Canadian dollars. The exchange rate is given as 1.0287 CAD per USD. Therefore, the amount in CAD will be $304.95 x 1.0287 = $313.70, rounded off to two decimal places.
Hence, the best choice is C.

Quiz 3: Ratio, Proportion, and Percent