Standard Financial Mathematics – Money matters

This lesson comprises six (6) master classes focusing on:

• GST
• Percentage profit and loss
• Simple interest
• Depreciation of assets
• Salaries and wages
• Income tax and deductions
• Personal budgets and investments

Content:

MS-F1.1

• Apply percentage increase or decrease in various contexts, eg calculating the goods and services tax (GST) payable on a range of goods and services, and calculating profit or loss in absolute and percentage terms
• Calculate simple interest for different rates and periods
  • use technology or otherwise to compare simple interest graphs for different rates and periods
• Calculate the depreciation of an asset using the straight-line method as an application of the simple interest formula
  • use \( S=V_0−Dn \), where \( S \) is the salvage value of the asset after n periods, \( V_0 \) is the initial value of the asset, \( D \) is the amount of depreciation per period, and \( n \) is the number of periods
• Use a spreadsheet to calculate and graph compound interest as a recurrence relation involving repeated applications of simple interest

MS-F1.2

• Calculate monthly, fortnightly, weekly, daily or hourly pay rates from a given salary, wages involving hourly rates and penalty rates, including situations involving overtime and other special allowances, and earnings based on commission (including commission based on a sliding scale), piecework or royalties
  • calculate annual leave loading
  • calculate payments based on government allowances and pensions
• Calculate income tax
  • identify allowable tax deductions
  • calculate taxable income after allowable tax deductions are taken from gross pay
  • calculate the Medicare levy (basic levy only)
  • calculate the amount of Pay As You Go (PAYG) tax payable per fortnight or week using current tax scales, and use this to determine if more tax is payable or if a refund is owing after completing a tax return
• Calculate net pay following deductions from income
• Use technology to perform financial computations, for example calculating percentage change, calculating tax payable and preparing a wage-sheet

MS-F1.3

• Interpret and use information about a household’s electricity, water or gas usage and related charges and costs from household bills
• Plan for the purchase of a car
  • investigate on-road costs for new and used vehicles, including sale price (or loan repayments), registration, insurance and stamp duty at current rates 
  • consider sustainability when choosing a vehicle to purchase, for example fuel consumption rates
  • calculate and compare the cost of purchasing different vehicles using a spreadsheet
• Plan for the running and maintenance of a car
  • describe the different types of insurance available, including compulsory and non-compulsory third-party insurance, and comprehensive insurance
  • investigate other running costs associated with ownership of a vehicle, eg cost of servicing, repairs and tyres
  • calculate and compare the cost of running different vehicles using a spreadsheet
• Prepare a personal budget for a given income, taking into account fixed and discretionary spending