1. Shafiqah Shariff 10C

2. 1. Your wage is $70,000 per annum from which you pay tax; calculate the tax to the nearest dollar... Tax Subdivision% Tax Payable (marginal rate) 10-6000Nil 26001-35,00015c for each $1 over $6000 335,001-80,000$4350 plus 30c for each $1 over $35000 480,001-180,000$17,850 plus 40c for each $1 over $80,000

3. Based on your income, you fit into Category 3. $70,000 - $35,000 = $35,500 This means you have pay $4350 plus 30c x $35,500. Tax = $15,000

4. 2. After subtracting the tax from your wage, calculate your monthly take home wage... Wage $70,000 & Tax $14,850 $70,000 - $14,850 = $55,150 per annum 12months per Year: $55,150 / 12 = $4595.83 per month

5. 3. You purchased a motor bike for $5000 and sold it for $4000. Did you make a profit or loss? How much profit or loss did you make in percentage? Paid $5000 – Received $4000 = $1000 Loss % = 1000/5000 x 100 : 20% Loss

6. 4. Assume 8% of your annual income is $4000, what is your actual annual income? $4000 / 8 = 500 1% = $500 $500 x 100 = $50,000 100% (actual income) = $50,000

7. www.realestate.com.au 5. Select a house – put the image on your project. Find out the house price and set up a loan over 25years and make monthly payments on this loan. Assume the current interest rate is 5% per annum compounding monthly. How much do you owe at the end of 25years?

8. House Price: $500,000 Time: 25 years Interest Rate: 5% per annum (compounded monthly) A=P(1+r /100)^n n: 12x25yrs = 300 r: 5% /12 =0.417 Amount Owed: $500,000 x (1+0.417 /100)^300 = $1,742,379.5

9. 6. Purchase a car hire purchase without a deposit. For convenience make monthly repayments for 3 years at 8% rate of interest per annum at simple interest. What would be the monthly repayment? Car Price = e.g. $25,000 (principal) Rate = 8% Time = 3 Years Formula: P(1 + r x T /100) Value = $25,000 (1 + 8% x 3 /100) = $31,000 Monthly Repayment : $31,000 / (12 x 3Years) = $861.11

10. 7. You planned to invest $8,500 in a term deposit. You had two investment plans from which to choose... PLAN 1 – Simple interest at 5% per annum PLAN 2 – Compound interest at 5% per annum, compounding every 6 months (twice a year)

11. a) Calculate the total interest earned if you invested your money using PLAN 1 for a year... Formula: PRT /100 $8,500 x 5% x 1 /100 = $425

12. b) Calculate to the nearest cent, total interest earned if you invested your money using PLAN 2 for a year... Formula = P( 1 + r /100)^n - P r: 5% / 2 : 2.5 n: 2 x 1 Year $8,500 ( 1 + 2.5 /100)^2 – $8,500 = $430.32

13. c) Calculate the simple interest rate that would provide the same total interest as earned under the PLAN 2 for an investment of $8,500 for a year... Simple Interest: PRT /100 Interest (From PLAN 2): $430.32 Rate = 100 x I / (P x T) = 5.06%