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Tax, Inflation and Loans

Total questions: 12

Worksheet time: 3600secs

Name
Class
Date
1.

What marginal tax rate applies with an income of $46, 000 and $10,600 interest earned from an investment.

a)

19%

b)

35%

c)

32.5%

d)

37%

2.

If the marginal tax rate is 19% how much tax would be charged on an investment of $3, 200?

a)

$608

b)

$60.80

c)

$570

d)

$60, 800

3.

What is the after tax return if the interest from an investment is $45, 670 and the marginal tax rate is 32.5%?

a)

$14, 842.75

b)

$30,827.25

c)

$15, 984.5

d)

$33, 360.32

4.

If $2, 690 is invested in a savings account offering 3.2%p.a interest compounded monthly , how much interest would be earned in 4 years?


If the individual earns $81, 560 per year, first determine the tax rate and then determine the tax paid on the investment.

a)

$119.21

b)

$361.2

c)

$366.81

d)

$135.72

5.

If the original value of an investment is $4, 780 how much is the investment worth after 3 years if inflation averages 2% per year.

a)

$5,072.57

b)

$5,736

c)

$4,875.60

d)

$4,973.11

6.

A bank offers an interest rate of 3.4% p.a compounded quarterly on their investment account. If $5, 000 is invested find the value of the account after 2 years.


After the 2 years of inflation the original investment is worth $5, 140.98. What is the real rate of return on the investment.

a)

1.6%

b)

2%

c)

0.4%

d)

3%

7.

Emily spent $800 on July 20th. If her statement arrives on July 24th and she pays on August 30th. How much is she charged in interest if the credit card charges 18% interest.

a)

$1.57

b)

$16. 18

c)

$16.57

d)

$9.86

8.

Nate used his credit card on March 14th to purchase a new phone. If his statement arrives on April 2nd what is the last day Nate can pay in the interest free period?

a)

April 8th

b)

April 9th

c)

April 28th

d)

April 27th

9.

Find the minimum monthly repayment for a loan of $12, 000 if the loan is to be repaid over 3 years at 13.4% interest compounded monthly.

a)

$406.65

b)

$511. 69

c)

$162.5

d)

$410.45

10.

Find the minimum quarterly repayment on a loan of $25, 600 to be repaid over 4 years if interest is charged at 9%p.a compounded quarterly.

a)

$1703.91

b)

$1922.99

c)

$7901.92

d)

$1922.98

11.

What are the total repayments on a loan of $7, 000 to be repaid over 4 years at 5.2%p.a compounded monthly.

a)

$161.85

b)

$7,768.80

c)

$7, 364

d)

$8, 456

12.

What are the total repayments on a loan of $10, 200 to be repaid over 5 years with interest charged at 6.7% compounded fortnightly?

a)

$11, 309.28

b)

$92.44

c)

$12, 017.2

d)

$15, 700.67