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 45936.272cleaners,eachreceiving45 936. 272 cleaners, each receiving 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.

  1. (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.

  2. (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.

  3. (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.

  4. (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 2.5%2.5\% more than the 2017 salary,

2020 salary=100%+2.5%=102.5% of 2017 salary.\text{2020 salary} = 100\% + 2.5\% = 102.5\% \text{ of 2017 salary}.

2. Find the 2017 salary by dividing by the percentage multiplier.

Let the 2017 salary be xx.

102.5%×x=45 936102.5\% \times x = 45\,936

1.025x=45 9361.025x = 45\,936

x=45 9361.025=44 816x = \frac{45\,936}{1.025} = 44\,816

Answer

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
=$5.20×8×20=$832= \$5.20 \times 8 \times 20 = \$832

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 =9%= 9\%, employee contribution =7.5%= 7.5\%.

Total contribution rate
=9%+7.5%=16.5%= 9\% + 7.5\% = 16.5\%

Total monthly CPF contribution
=16.5%×832= 16.5\% \times 832
=0.165×832=$137.28= 0.165 \times 832 = \$137.28

Answer

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 1:31:3.

Total parts =1+3=4=1+3=4.

Number of male supervisors
=14×12=3.=\frac{1}{4}\times 12=3.

Total number of employees
=11+272+12+11=306.=11+272+12+11=306.

2. Calculate the probability and justify the comment.

Probability of selecting a male supervisor
=3306=1102≈0.0098=0.98%.=\frac{3}{306}=\frac{1}{102}\approx 0.0098=0.98\%.

This probability is very small, so the event is most unlikely.

Answer

Yes. There are 33 male supervisors out of 306306 employees, so the probability is 3306=1102≈0.98%\dfrac{3}{306}=\dfrac{1}{102}\approx 0.98\%, 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:
5.20×8×20=$8325.20 \times 8 \times 20 = \char36{}832

Handyman’s monthly salary:
4593612=$3828\dfrac{45936}{12}=\char36{}3828

Supervisor’s monthly salary:
832×335%=832×3.35=$2787.20832 \times 335\% = 832 \times 3.35 = \char36{}2787.20

Driver’s monthly salary:
594.50×4=$2378594.50 \times 4 = \char36{}2378

2. Find the total monthly salary paid to all employees.

Total monthly salary
=11(3828)+272(832)+12(2787.20)+11(2378)=11(3828)+272(832)+12(2787.20)+11(2378)
=42108+226304+33446.40+26158=42108+226304+33446.40+26158
=$328016.40=\$328016.40

3. Find the mean monthly salary of all employees.

Total number of employees:
11+272+12+11=30611+272+12+11=306

Mean monthly salary:
328016.40306=$1071.95 approximately\dfrac{328016.40}{306}=\$1071.95\text{ approximately}

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 $832\char36{}832.

Difference:
1071.95−832=$239.951071.95-832=\$239.95

Percentage of the mean salary:
239.951071.95×100%=22.4% approximately\dfrac{239.95}{1071.95}\times 100\%=22.4\%\text{ approximately}

Since 22.4%<25%22.4\%<25\%, John’s statement is valid.

Answer

The percentage difference is approximately 22.4%22.4\%, which is less than 25%25\%. Therefore, John’s statement is valid.

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