Checkpoint 1: Financial Mathematics
Test your understanding of earning, spending, saving and investing money. This checkpoint covers wages and salaries, overtime and commissions, budgets and GST, discounts and best buys, simple and compound interest, and depreciation.
Answer all questions. Use the marking criteria for short answer questions to check your working.
Multiple Choice Questions
2 marks each — 20 marks total
Oliver earns $28.50 per hour. He works 38 hours in a normal week and 4 hours overtime at time-and-a-half. What is his gross pay for the week?
A sales representative earns a base wage of $850 per week plus 3.5% commission on sales. If they sell $12,000 worth of goods, what is their gross pay?
A household budget shows monthly income of $4,800. Essential expenses are $2,600, discretionary expenses are $1,400 and the rest is saved. What percentage of income is saved?
A tradesperson quotes $680 plus GST for a repair. How much does the customer pay in total?
A store reduces all items by 15%, then offers a further 10% off the sale price during a members event. What is the total percentage discount?
Coffee A costs $8.40 for 250g. Coffee B costs $14.40 for 500g. Which is the better buy?
$6,500 is invested at 4.5% p.a. simple interest for 4 years. What is the total amount?
$10,000 is invested at 5% p.a. compounded annually for 3 years. What is the compound interest earned?
An investment compounds monthly. The annual rate is 6%. What is the monthly rate as a decimal?
A company vehicle purchased for $48,000 depreciates at 15% p.a. using reducing balance. What is the book value after 2 years?
Short Answer Questions
Use the marking criteria to check your working
Mia works as a retail assistant. She earns $26.80 per hour for a standard 38-hour week. On Saturdays she receives time-and-a-half and on Sundays she receives double time.
During one week, Mia works 38 standard hours, 5 hours on Saturday and 4 hours on Sunday.
(a) Calculate Mia's gross pay for the standard hours. (1 mark)
(b) Calculate her gross pay for the Saturday hours. (1 mark)
(c) Calculate her gross pay for the Sunday hours. (1 mark)
(d) Calculate her total gross pay for the week. (1 mark)
(e) If Mia pays 18% tax on her gross pay, calculate her net pay. (1 mark)
Ethan is comparing two savings options for $15,000 over 3 years.
Option A: 4.8% p.a. simple interest.
Option B: 4.5% p.a. compounded quarterly.
(a) Calculate the total amount from Option A. (2 marks)
(b) Calculate the total amount from Option B. (2 marks)
(c) Which option should Ethan choose? Justify with calculations. (1 mark)