Understanding Finance
Income and Tax
Simple Interest
Compound Interest
100
Define the word 'Interest'
The amount paid extra
or
The cost of borrowing money
100
Charlotte makes $580 a week. How much does he make in a year?
$30160
100
Lara invests $20 into a new bank account which pays interest at a rate of 50% p.a. for a year. How much interest does she make?
$10
100
Sophie's investment earns a compound interest rate of 6% p.a. compounding monthly. What is her monthly compound rate?
0.5%
200
What is overtime?
When you work longer than a regular shift and are paid a higher rate for doing so.
200
Amelie earns a 2% commission on all each dollar over $2500 in sales. How much commission does she get from selling $3050 in goods?
$11
200
Claudia invests $130 at a flat rate of 10% p.a. for 12 years. How much money does she have at the end of the 12 years?
$286
200
Amelia invests $2500 into a bank account which earns 6% p.a. compounding quarterly. How much will it be worth in 3 years time?
$2989.05
300
Define the term 'commission'
Commission is a percentage of sales made which is paid to an employee as an extra payment.
300
Milla worked out her tax payable to be $17,840.
Throughout the year she paid $347 in PAYG tax.
Does she owe money or does she get a refund? By how much?
She gets a refund of $204
300
India invested $2500 in a simple interest account for 5 years. If she earnt $875 in interest, what was her annual rate of interest?
7%
300
Tilly opens a bank account and invests $500 of her savings. The account earns interest at a rate of 4% p.a. compounding daily. How much money will she have after 2 years?
$541.64
400
What is the difference between simple interest and compound interest?
Simple interest is calculated based on a single principal amount. Compound interest is based on a principal which continues to increase based on prior interest added.
400
Calculate Willow's tax payable on $34,800.
$3154
400
A car costs $18,000 to buy outright. Ashley decides to buy the car 'on terms' where she pays a $3000 deposit and each week after she makes a repayment of $177 for 2 years. How much interest does she pay?
$3408
400
Sophia bought a car 8 years ago. Each year it depreciated 12% in value. If the car is now worth $7912? (Nearest Dollar)
$22,000
500
Misia pays a Medicare levy of $1720 on her taxable income.
What is the TOTAL AMOUNT of tax Misia needs to pay?
Tax payable + Medicare levy: $19,497
500
Taya left some money in a bank account for 5 years. She had $1500 at the end and knows the principal earnt 4% p.a.. How much was the principal?
$1250
500
Jasmine buys a rare guitar for $2700. Over time it appreciates in value by 3.5% p.a. compounding yearly. After how many years will the guitar be worth over $4000?
12 Years