FACTS

Barbara, who is now retired, loves cooking shows, especially MasterChef. More particularly, she loves cake decorating, so she decides to start a cake business, Sweet Treats. She discusses supplies and pricing of ingredients with her local supply shop. She now needs to organise a webpage to advertise her business, before she can go ahead and order the supplies. Stephen, her 17-year old grandson loves technology, and is hoping to study Bachelor of Information Technology at La Trobe University next year. He is currently studying Computing at school. His Dad, George, recently bought him a new Apple computer to encourage him to improve his computing skills. Barbara rings Stephen by videocall on her new iPhone and describes her business to him. She asks him whether he would set up a webpage for her, then maintain the webpage for her for the duration of the business. Barbara tells him she can only afford to pay him $3000 for setting up the webpage, then $500 each year for maintaining the page. She tells him she wants to start her business very soon, so would need a response from him by Friday night, by way of a text message on her iPhone! On Friday morning, Stephen rings Barbara on her phone saying: Grandma, I will do the job!

2. Does Barbara need to pay $500 to George? (4 marks)

Stephen informs his dad, George, about his agreement with Barbara. George asks Barbara to pay him $500.00, given that the computer he bought for Stephen will be partly used for the set up and maintenance of her webpage.