Interest and Depreciation

Question 1

Formula

Loan Repayment

Answer 1

Repayment = Amount owing / No. of repayments

Question 2

Formula

Percentage change

Answer 2

Final amount = (100(+/-)change)/100 × original amount

Question 3

Define

Goods and Services Tax (GST)

Answer 3

The money the Government collects whenever someone purchases a good or uses a service (such as a plumber). This is 10% of the value of the item and is charged on all goods except for most basic foods, some education courses and some medical, health and care products and services.

Question 4

Straight-Line Depreciation

Answer 4

S = V0 − Dn

Salvage value = Original value − Depreciation x Number of periods