Shopping Around

“Swedish rounding” involves rounding to the nearest 5 cents. Most supermarkets use this method on the total bill. So a bill of $1.98 is rounded to $2.00, and a bill of $1.97 is rounded to $1.95.
Rounding in New Zealand is now necessary following the abolition of 1 and 2 cent coins. This means that an amount such as $3.28 cannot be made exactly with coins.

Activity Two

This activity shows how the price of a single purchase is rounded up or down. Other rounding options exist when numerous items are bought. These are:

• Round each item up or down or use Swedish rounding and then find the total.
• Find the total and then round up or down or use Swedish rounding.

Activity Three

As an extension to question 1, explore a number of rounding scenarios.
The following methods could be used for Veronica’s shopping:

• Round each item down and then total (for example, CheapFood) $26.35
• Round each item up and then total (for example, Bag ’n’ Save) $26.95
• Round each item by Swedish rounding and then total $26.65
• Find the total and then … round up $26.70
  … round down $26.65
  … use Swedish rounding $26.65

If the Reserve Bank removed 5 cent coins from circulation, as suggested in question 2, the effects of rounding schemes would be accentuated because each total would be rounded to the nearest 10 cents.

Answers to Activity
 

Activity One
1. $2.75
2. There are no 1c or 2c coins used in New Zealand anymore.
Note: It is possible to pay this amount by cheque, EFTPOS, or credit card.
Activity Two
Cheapfood rounded down to the 5c below the amount.
Bag ’n’ Save rounded up to the 5c above the amount.
Some supermarkets round up or down depending on how close the amount is to the nearest 5c. For example:
$2.76 and $2.77 would be rounded down to $2.75.
$2.78 and $2.79 would be rounded up to $2.80.
Activity Three
1. Cheapfood: $26.65
Bag ’n’ Save: $26.70
2. Prices would have to be rounded either up or down to the nearest 10c.