Business mathsMohammad Asif Karimi

Your wage is $70,000 per annum from which you pay tax; calculate the tax to the nearest dollar. 70 000 – 35 001 34 999

34 999 0.30 10 499

10 499 + 4350 14 849.70

You pay $14 849.70 tax

After subtracting the tax from your wage, calculate your monthly take home wage. 70 000 – 14 849.70 55 150.30

55 150.3 / 12 4595.86

The monthly wage he gets with tax subtracted is $4595.8

You purchased a motor bike for $5000 and sold it for $4000. Did you make profit or loss? How much profit or loss did you make in percentage. 5000 – 4000 1000

1000 / 5000 100 20%

You have made a 20 percent loss.

Assume that 8% of your income is $ 4000, what is your actual income? x 0.08 = 4000 x = 0.08 / 4000 x = 50 000

Your annual income is $ 50 000.

Select a house, find out the house price and set up a loan over 25 years and make monthly payments on this loan. Assume the current rate is 5% p.a. Compounding monthly. How much do you pay in 25 years?

A = 2088795.07

At the end of 25 years you

would have to pay $2088795.07.

$600,000 - $650,000

Purchase a car on hire purchase without a deposit. For convenience make monthly repayments for 3 years at the interest rate of 8% p.a. At simple interest. What would be the monthly repayments?

I =

I = I = 24 000

A = 24000 + 150 000 17400

RP = 174 000 36 Repayment per month $4833.33

Yu planned to invest $ 8500 in a term deposit. You have two investment plans from which to choose:Plan 1. Simple interest at 5 % p.a.

Plan 2. Compound interest at 5 % compounding every six months.

a) Calculate the total interest earned if you have invested your money using plan 1 for a year.

b) Calculate to the nearest cent, total interest earned if you invested your money using plan 2 for one year.

c) Calculate the simple interest rate that would provide the same total interest earned under plan2 for an investment of $8500 for one year. Give your answer correct to 2 decimal places.

Yu planned to invest $ 8500 in a term deposit. You have two investment plans from which to choose:

a) b) c)