Financial mathematics - beginner

This lesson comprises three (3) master classes focusing on:

• Calculating percentage change, profit and loss
• The Goods and Services Tax (GST)
• Earning and spending money
• Simple interest

Content:

MA5-FIN-C-01

Solve problems involving earning money

• Solve problems involving wages given an hourly rate of pay including penalty rates for overtime, weekends and public holidays
• Calculate earnings from non-wage sources exploring commission, piece work and royalties
• Calculate weekly, fortnightly, monthly and yearly earnings assuming 1 year = 52 weeks
• Calculate leave loading by finding a percentage of eligible normal pay
• Investigate sources of published tables or online calculators and use these to calculate the weekly, fortnightly or monthly tax to be deducted from a worker’s pay under the Australian Pay-As-You-Go (PAYG) taxation system
• Determine annual taxable income by exploring allowable deductions and current tax rates
• Calculate net earnings after deductions and taxation

Solve problems involving simple interest

• Establish and use the formula \( I=Prn\) to find simple interest where \( I \) is simple interest, \( P \) is the principal, \( r \) is the interest rate per time period and \( n \) is the number of time periods
• Apply the simple interest formula to solve problems related to investing money at simple interest rates, both algebraically and graphically

Solve problems involving spending money

• Calculate the cost of buying items on terms, by paying an initial deposit and making regular repayments
• Examine payment options involving buy now, pay later and investigate the costs associated with these schemes for purchasing goods
• Examine the principles behind short-term loans involving small dollar amounts and compare borrowing costs associated with using these products