Maths Standard Year 11 - Module 3 - Full module review
Earning moneyManaging moneySimple and compound interestDepreciation modelsFinancial comparison and judgement
15 MC5 short answer45 min
0/15
Multiple Choice Score
Answer questions to see your score.
Part A - Multiple Choice
1A worker earns $28.50 per hour for 36 hours. What is the gross weekly wage?
$64.50
$1 026.00
$1 080.00
$1 140.00
B. Gross wage $=28.50 \times 36 = 1026.00$.
2A salesperson earns 3.5% commission on $12 400 of sales. What is the commission?
$43.40
$354.29
$434.00
$1 240.00
C. Commission $=0.035 \times 12400 = 434$.
3Gross pay is $1325 and total deductions are $311.75. What is the net pay?
$1 013.25
$1 636.75
$311.75
$1 325.00
A. Net pay $=1325-311.75=1013.25$.
4Gross income is $69 800 and allowable deductions are $2140. What is taxable income?
$2 140
$67 660
$69 800
$71 940
B. Taxable income $=69800-2140=67660$.
5A supplied tax rule says tax payable $= \$5092 + 0.325 \times$ the amount over $45 000. Find the tax on taxable income of $64 000.
$6 175
$11 267
$20 800
$25 892
B. Amount over $45 000 is $19 000$. Tax $=5092+0.325(19000)=11267$.
6A price of $605 includes GST. What is the GST component?
$55.00
$60.50
$550.00
$665.50
A. GST component from an inclusive price is $605 \div 11 = 55$.
7Monthly income is $5900 and monthly expenses are $6175. Which statement is correct?
Surplus of $275
Deficit of $275
Surplus of $6175
Budget is balanced
B. $5900-6175=-275$, so there is a $275 deficit.
8Which formula gives simple interest?
$I=Prn$
$A=P(1+r)^n$
$S=V_0(1-r)^n$
$D=(V_0-S)/n$
A. Simple interest is calculated on the original principal only: $I=Prn$.
9Find the simple interest on $4500 at 6% p.a. for 3 years.
$270
$810
$4770
$5310
B. $I=Prn=4500(0.06)(3)=810$.
10A $2000 investment earns compound interest at 5% p.a. for 2 years. What is the final amount?
$2100.00
$2200.00
$2205.00
$2500.00
C. $A=2000(1.05)^2=2205$.
11Which phrase most strongly suggests compound interest rather than simple interest?
Interest calculated on the original principal only
Same dollar amount of interest each year
Interest added to the account and then earns further interest
Fixed yearly depreciation amount
C. Compound interest is interest on the principal plus accumulated interest.
12A car worth $24 000 depreciates by $3200 per year using straight-line depreciation. What is its value after 4 years?
$11 200
$12 800
$20 800
$36 800
A. $S=24000-3200(4)=11200$.
13A laptop worth $1800 depreciates at 20% p.a. using declining balance. What is its value after 2 years?
$720.00
$1 080.00
$1 152.00
$1 440.00
C. $S=1800(1-0.20)^2=1800(0.8)^2=1152$.
14Which description best matches straight-line depreciation?
The same percentage of the current value is lost each year.
The same dollar amount is lost each year.
The value increases each year.
Interest is calculated on accumulated interest.
B. Straight-line depreciation subtracts a constant dollar amount each period.
15An investment offers simple interest and another offers compound interest at the same annual rate for several years. Which judgement is usually correct?
Simple interest always gives more.
Compound interest usually gives more because interest earns further interest.
They must always give exactly the same amount.
The smaller principal always gives more interest.
B. With the same principal, rate and time, compound interest usually grows faster because interest is reinvested.
Part B - Short Answer
1A worker is paid $29 per hour for 38 ordinary hours and 5 overtime hours at time-and-a-half. They also receive a $24 meal allowance.
2A taxpayer has gross income of $76 500 and allowable deductions of $3180. A supplied tax rule says tax payable $= \$5092 + 0.325 \times$ the amount over $45 000. PAYG withheld is $14 850.
a. Calculate taxable income. 2 marks
b. Calculate tax payable. 3 marks
c. State whether there is a refund or debt. 2 marks
Taxable income $=76500-3180=73320$. Amount over $45000 is $28320$. Tax payable $=5092+0.325(28320)=5092+9204=14296$. PAYG withheld is greater, so refund $=14850-14296=554$.
3A household has monthly net income of $7100. Monthly expenses are rent $2650, groceries $980, electricity $330 including GST, transport $620, insurance $245 and other $810.
a. Calculate total monthly expenses. 2 marks
b. Calculate the monthly surplus or deficit. 2 marks
c. Find the GST component of the electricity bill. 1 mark
4Compare two $5000 investments over 4 years: Option A earns simple interest at 6% p.a.; Option B earns compound interest at 5.8% p.a.
a. Calculate the final amount for Option A. 2 marks
b. Calculate the final amount for Option B to the nearest cent. 2 marks
c. State which option gives the larger final amount and by how much. 2 marks
Option A: $I=5000(0.06)(4)=1200$, so $A=6200$. Option B: $A=5000(1.058)^4 \approx 6265.10$. Option B is larger by about $65.10$.
5A machine costs $18 000. It is depreciated by straight-line depreciation of $2400 per year for tax records, but its market value falls by declining balance at 18% p.a.
a. Find the straight-line value after 3 years. 2 marks
b. Find the declining-balance value after 3 years, to the nearest cent. 2 marks
c. Explain why the two values are different. 2 marks
Straight-line value $=18000-2400(3)=10800$. Declining-balance value $=18000(0.82)^3 \approx 9919.66$. They differ because straight-line subtracts the same dollar amount each year, while declining balance subtracts the same percentage of the current value.
This quiz reviews the full Financial Mathematics module. Use missed questions to choose which lessons to revise.