Financial maths

Question 1

Gross income

Answer 1

Total pay before taxes/deductions

Question 2

Net income

Answer 2

Pay after deductions

Question 3

Standard rate of tax

Answer 3

20%

Question 4

Higher rate of tax

Answer 4

42%

Question 5

Gross tax

Answer 5

Tax owed before deductions

Question 6

Tax credits

Answer 6

Money deducted from tax

Question 7

Statutory deduction

Answer 7

Mandatory taxes e.g. P.A.Y.E. tax

Question 8

Non statutory

Answer 8

Voluntary deductions, e.g union fees

Question 9

% Profit or Mark-Up

Answer 9

( 𝑃𝑟𝑜𝑓𝑖𝑡/𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒)𝑥100 %

Question 10

% Profit Margin

Answer 10

(𝑃𝑟𝑜𝑓𝑖𝑡/𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒)𝑥100%

Question 11

% Loss

Answer 11

(𝐿𝑜𝑠𝑠/𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒)𝑥100%

Question 12

%Discount

Answer 12

(Discount/cost) x100%

Question 13

Find the vat

Answer 13

Multiply by percentage vat + add to origional price

Question 14

Find price without vat

Answer 14

Price - percentage vat

Question 15

Find gross tax

Answer 15

Add tax @ lower + higher rate

Question 16

Find tax payable

Answer 16

Gross tax - tax credits

Question 17

Find net income

Answer 17

Gross pay - all deductions

Question 18

Compound interest formula

Answer 18

F=𝑃(1+𝑖)ᵗ

Question 19

Deprrciation formula

Answer 19

F=𝑃(1-𝑖)ᵗ

Question 20

What does F mean in compound interest formula

Answer 20

Final value

Question 21

What does P mean in compound interest formula

Answer 21

Principle (start value)

Question 22

What does i mean in compound interest formula

Answer 22

Interest rate in decimal form

Question 23

What does t mean in compound interest formula

Answer 23

time