John owns a cleaning company that cleans office blocks.
The number of employees in his company and their salaries in 2020 are as follows.
11 handymen, each receiving a yearly salary of 5.20 per hour and working 8 hours per day for a total of 20 days per month.
12 supervisors, men and women in the ratio 1 : 3, each receiving a monthly salary that is 235% more than a cleaner’s monthly salary.
11 drivers, each receiving $594.50 per week, for 4 weeks in a month.
In addition, both employer and employee must contribute a portion of the employee’s monthly salary to the Central Provident Fund (CPF).
The table shows the CPF contribution and allocation rates for Singapore citizens.

- (a)
The yearly salary of each handyman in 2020 is 2.5 % more than in 2017.
Find the yearly salary of each handyman in 2017. - (b)
Mdm Lee is a 65 year old Singapore citizen who works as a cleaner in John's cleaning company. Calculate the total amount of contribution to Mdm Lee's CPF account every month in 2020.
- (c)
Every month, John randomly selects an 'Employee of the Month' from all his employees.
Mr Tan comments that the chance of randomly selecting a male supervisor as the employee of the month is most unlikely.
Do you agree with Mr Tan's comment? Justify your answer. - (d)
John states that the difference between the salary of the lowest paid employee and the mean salary of all the employees as a percentage of the mean salary of all the employees is less than 25%.
Verify, showing all calculations, whether his statement is valid.
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Worked solution
10(a)
1. Express the 2020 salary as a percentage of the 2017 salary.
Since the 2020 salary is more than the 2017 salary,
2. Find the 2017 salary by dividing by the percentage multiplier.
Let the 2017 salary be .
The yearly salary of each handyman in 2017 was $44 816.
10(b)
1. Find Mdm Lee's monthly salary as a cleaner.
Cleaner monthly salary
2. Use the CPF rates for age 65 and calculate the total CPF contribution.
For age 65, use the rates for above 60 to 65:
Employer contribution , employee contribution .
Total contribution rate
Total monthly CPF contribution
The total monthly CPF contribution is $137.28.
10(c)
1. Find the number of male supervisors and the total number of employees.
Supervisors are men and women in the ratio .
Total parts .
Number of male supervisors
Total number of employees
2. Calculate the probability and justify the comment.
Probability of selecting a male supervisor
This probability is very small, so the event is most unlikely.
Yes. There are male supervisors out of employees, so the probability is , which is very small. Hence it is most unlikely.
10(d)
1. Find the monthly salary for each type of employee.
Cleaner’s monthly salary:
Handyman’s monthly salary:
Supervisor’s monthly salary:
Driver’s monthly salary:
2. Find the total monthly salary paid to all employees.
Total monthly salary
3. Find the mean monthly salary of all employees.
Total number of employees:
Mean monthly salary:
4. Express the difference between the lowest salary and the mean salary as a percentage of the mean salary, then verify the statement.
The lowest paid employees are the cleaners, with monthly salary .
Difference:
Percentage of the mean salary:
Since , John’s statement is valid.
The percentage difference is approximately , which is less than . Therefore, John’s statement is valid.
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