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2.08 Financial calculations

Worksheet
Budgeting and personal finance
1

A weekly budget is shown in the table:

a

Calculate the weekly expenses.

b

Calculate the weekly savings.

c

Calculate the percentage of income saved correct to two decimal places.

d

Calculate the percentage of income spent on mortgage payments correct to two decimal places.

e

Calculate the amount paid on the mortgage in one year.

Income Expenses
\text{Earnings}\$505\text{Mortgage}\$147
\text{Electricity} \$23
\text{Food} \$64
\text{Council Rates} \$22
\text{Insurance} \$20
\text{Water} \$64
\text{Clothing} \$46
\text{Entertainment} \$56
2

James's monthly expenses include: rent, food, pay TV, travel, insurance, clothing, repairs.

a

Determine whether the following expenses are fixed:

i

Pay TV

ii

Travel

iii

Insurance

iv

Clothing

v

Repairs

vi

Rent

b

Determine whether the following expenses are variable:

i

Pay TV

ii

Travel

iii

Insurance

iv

Clothing

v

Repairs

vi

Rent

3

Amelia earns a weekly salary of \$723 and receives income from other sources of \$126. Her weekly expenses are: rent \$199, groceries \$51, petrol \$33, electricity \$33, telephone \$23, magazines \$13 and clothes \$62. Calculate:

a
Her weekly income
b
Her weekly expenses
c
Her weekly savings
d
Her annual savings
4

Julie earns \$610 per week. Her weekly work related expenses are \$185 on travel and \$86 on lunch. What percentage of her weekly income goes towards work related expenses? Round your answer to two decimal places.

5

Amerie pays rent of \$239 per week, and must budget for electricity and water costs of \$533 per quarter. How much should she put aside each week to cover these expenses?

6

Sally earns a weekly salary of \$1195 and receives income from other sources of \$181. Her weekly expenses are on the right:

Calculate:

a

The percentage of income saved, correct to two decimal places.

b

The percentage of income spent on magazines and clothes, correct to two decimal places.

c
The amount of rent paid annually.
d

The number of full weeks needed to accumulate enough savings to pay for a holiday that costs \$3800.

  • Rent \$122

  • Groceries \$97

  • Petrol \$60

  • Electricity \$46

  • Telephone \$28

  • Magazines \$10

  • Clothes \$79

7

Last month Neil saved \$235, which was 15\% of his income. Calculate his income last month.

8

Lauren earns a gross annual salary of \$34\,500. She wants to put aside equal monthly amounts towards starting her own business. If she must pay income tax of 24\% and other expenses adding up to \$19\,650 per annum, how much does she have left to set aside each month?

9

Luke’s weekly expenses vary slightly from week to week. His expenses in the first 3 weeks are \$225, \$218 and \$208. If he can only afford to have an average weekly expense of \$221 every four weeks, calculate the maximum expense he can have in the fourth week.

10

A company’s advertising cost is 2 times its technology cost, and production cost is 8 times the advertising cost. If advertising, technology and production cost \$142\,000 in total, calculate the cost of advertising.

11

Christa’s expenses currently represent 30\% of her \$920 weekly income. If her expenses increase by 5\%, what percentage of her income will expenses take up?

12

Todd's current income of \$327 is to increase by \$6.54, but his current expenses of \$114.45 are also set to increase by 4\%.

a

What percentage of his income is currently consumed by expenses?

b

Calcuate the percentage of income consumed by expenses after the increases. Give your answer to two decimal places if necessary.

c

Calculate the change in percentage of his income consumed by expenses.

13

Tina wants to take out a car loan, making regular monthly repayments. She expects the other costs to be:

  • \$50 per week for petrol

  • \$110 per month for insurance

  • \$40 per annum for the renewal of her driver's license

  • \$310 every six months for servicing

  • \$750 per annum for her Green Slip (third party insurance)

  • \$600 per annum for registration

a

Calculate the equivalent annual cost of the following:

i

Petrol

ii

Insurance

iii

License

iv

Servicing

v

Green Slip

vi

Registration

b

What is the total annual cost of running the car?

c

If Tina has an annual income of \$59\,000, and can spend 19\% of it on buying and running the car, calculate the maximum monthly repayment she can afford to make.

Overtime and extra income
14

The normal pay rate is \$13.40 per hour.

a

What is the time-and-a-half rate?

b

What is the double time rate?

15

For an hourly rate of \$30, calculate the income earned for working:

a

35 hours at normal rates and 6 hours at time-and-a-half.

b

28 hours at normal rates and 5 hours at double time.

c

29 hours at normal rates, 9 hours at time-and-a-half and 7 hours at double time.

d

8 hours at time-and-a-half and 7 hours at double time.

16

Calculate the equivalent number of hours worked at normal pay for working:

a

33 hours at normal rates and 10 hours at time-and-a-half

b

37 hours at normal rates and 5 hours at double time

c

21 hours at normal rates, 10 hours at time-and-a-half and 8 hours at double time

d

7 hours at time-and-a-half and 10 hours at double time

17

A call centre worker is paid \$20 per hour for a normal 37-hour week, and time-and-a-half for each hour worked thereafter. Calculate his income for a week in which he works:

a

27 hours

b

45 hours

18

For each week, Sarah earns a wage of \$18 per hour for the first 23 hours, time-and-a-half for the next 9 hours, and double time after that. Calculate her weekly income if she works:

a

18 hours per week.

b

27 hours per week.

c

37 hours per week

19

Dave, a delivery driver, is paid \$10 per hour, plus a uniform allowance of \$15 per week, \$92 per week for depreciation on his car, and a travel allowance of 37 cents per kilometre. Calculate his weekly income, if he worked 28 hours and travelled 1284 km.

20

A job advertisement states that the hourly wage based on a 35-hour working week is \$38 and that there is a 17\% holiday loading on 4 weeks wages. How much holiday loading would the employee receive?

21

Calculate the value of a 7\% annual bonus, for an income of:

a

\$88\,000 per annum.

b

\$7000 per month.

c

\$3900 per fortnight.

d

\$1500 per week.

22

Carl earns \$910 per week. Calculate his normal hourly rate of pay if he works:

a

34 hours at normal rates and 10 hours at time-and-a-half.

b

35 hours at normal rates and 10 hours at double time.

c

34 hours at normal rates, 7 hours at time-and-a-half and 6 hours at double time.

23

Jack needs to earn \$381.15 this week to cover his expenses. His normal hourly rate is \$12.10 and he is rostered to work 24 normal hours from Monday to Friday.

a

How much will he earn from Monday through to Friday?

b

Calculate the amount he needs to earn on Saturday.

c

Hence, calculate how many hours Jack must work on Saturday, where he will earn time-and-a-half.

24

An employee is given a 13\% bonus on his annual income. This bonus amounted to \$19\,000. Calculate his annual income.

25

An advertising executive is offered a bonus in the form of a percentage of the increase in sales of the product. If sales increase by \$173\,950 and the executive receives a bonus of \$11\,654.65, what was the percentage rate of his bonus, correct to one decimal place?

Tax and other deductions
26

For a gross annual income of \$52\,000, calculate the net income when:

a

Tax is \$11\,100 and superannuation is \$2500 per year.

b

Tax is \$14\,000, superannuation is \$3200 and insurance is \$2600 per year.

c

Tax is \$12\,600, rent is \$12\,500 and union fees are \$800 per year.

27

Bill earns \$843.50 per week and has the following deductions from his gross wage: tax \$253.05, superannuation, \$85, and union fees, \$25.61. Calculate Bill’s net pay.

28

Amanda earns \$2563.65 every two weeks and has the following deductions from her gross wage: tax of \$559.17, superannuation of \$79, and union fees of \$22.47.

a

Calculate Amanda's net pay.

b

Express her income tax as a percentage of her gross pay, correct to one decimal place.

29

Calculate the net weekly wage of a carpenter who must pay 16\% tax on an annual salary of \$38\,080.

30

If tax is stated as being 15.9 cents in the dollar, what percentage tax is this?

31

Brad has a gross weekly wage of \$982.32, and pays \$36.27 for health insurance and \$9.76 for union membership. His net weekly pay is \$781.57.

a

How much tax does Brad pay each week?

b

What percentage of Brad's gross wage is paid in tax? Write your answer correct to one decimal place.

c

What percentage of Brad's gross wage goes towards union fees? Write your answer correct to three decimal places.

32

A train conductor is paid \$21.66 per hour for a 40 hour week, with overtime paid at a time and a half rate.

a

Find her net pay for a week when she worked for 43 hours and had PAYG tax deductions of \$109.28.

b

What percentage of her gross pay was paid in tax? Round your answer to the nearest whole number.

33

Calculate the percentage of gross income going to taxes, correct to two decimal places, when:

a
Gross income is \$56\,000 and income tax is \$15\,000.
b

Gross income is \$49\,000, income tax is \$13\,000 and superannuation is \$5400.

34

Express net income as a percentage of gross income, correct to two decimal places, for each of the following cases:

a
Gross income is \$ 45\,000 and net income is \$35\,000.
b
Gross income is \$50\,000 and income tax is \$14\,000.
c
Gross income is \$42\,000, income tax is \$10\,000, superannuation is \$2100 and insurance is \$1100.
35

A self-employed tradesman must put aside 9\% of each fortnightly wage towards superannuation, and pay 10\% GST to the government. If he earns \$1067 in a fortnight, calculate his net income after these deductions.

36

A lifeguard earns a gross hourly wage of \$19 during normal working hours, and earns time-and-a-half on weekends. Every fortnight, he works 19 normal hours and 14 hours on weekends.

a

Find his gross fortnightly wage.

b

Find his net fortnightly income, given that he is taxed at a rate of 12\%.

37

Bob received his weekly pay slip. His hourly rate is \$23.21. Complete the third column of the following table:

Hourly RateHoursPayDeductions
\text{Normal}34\text{Tax}\left(25\%\right)\$252.41
\text{Time-and-a-half}5\text{Superannuation}\$95.92
\text{Double}1\text{Union}\$9.19
\text{Gross Wage}\text{Health Fund}\$20.78
\text{Total Deductions}
\text{Net Wage}
38

Ben is a window cleaner and is paid a gross wage of \$28.55 per hour for 52 hours per fortnight. Each fortnight \$162.92 is deducted as PAYG tax instalments as well as \$43.28 for in home and contents insurance. Find Ben's net fortnightly pay.

39

Valentina, a retiree, receives annual superannuation payments of 64\% of her final year's salary of \$55\,000. Calculate:

a
Her annual superannuation income.
b

Her annual disposable superannuation income, if her income tax is 24\% of her gross income.

40

Michael receives a weekly gross salary of \$530. If he pays 19\% of this in income tax, 9\% in superannuation and \$7.70 in medical insurance, calculate his net weekly pay.

41

If 9\% tax is payable on income but not inheritance, how much must be deducted from an income and inheritance that totals \$7350, of which 46\% is inheritance?

42

A labourer is paid a gross annual salary of \$31\,300. Each week he contributes 8\% of his gross pay to a voluntary superannuation fund. His other weekly deductions are \$103.50 PAYG tax and \$9.50 for union fees. Calculate:

a

His total weekly deductions.

b

His net weekly income.

43

In the last financial year, Carl was paid a wage every month, and each week there was \$61 deducted as PAYG tax.

a

How much did Carl pay in total in PAYG tax last financial year?

b

At the end of the financial year, he calculates his total tax payable to be \$3049. Will he receive a refund or have tax owing?

44

Amelia’s employer deducts a percentage of her income in tax. The fortnightly amount deposited into Amelia's account is \$1964 and she earns an annual gross income of \$63\,830.00.

a

Calculate her net annual income.

b

Hence, calculate the rate at which she is being taxed. Round your answer to the nearest whole percentage.

45

Roxanne’s gross fortnightly pay is \$2845.18. Each fortnight her employer deducts \$592.04 in PAYG tax instalments and she contributes \$47.63 to a voluntary superannuation fund for her retirement. Find Roxanne's weekly net pay.

46

Employers are legally obliged to pay an amount worth 9.5\% of an employee's income into a superannuation fund. If Eileen's annual income is \$43\,000 and she chooses to contribute a further 5\% of her income into her superannuation fund, calculate:

a

The amount paid into Eileen's superannuation fund in one year.

b

The amount extra paid into Eileen's superannuation fund the following year, when she receives a 9\% pay rise.

47

Yuri has a gross salary of \$69\,941.69 with an annual income tax deduction of \$15\,759.98, a superannuation contribution of 9.5\% of the gross salary and a health insurance contribution of \$92 per week, for 52 weeks. Calculate his net annual income.

48

Neil is self-employed and must put aside his own superannuation and tax each month. He estimates his income in the first half of the year to be \$57\,600 and for it to grow by 2.8\% in the second half of the year. He is to be taxed at a rate of 30\% and must put aside 9.5\% of his gross annual income into a superannuation fund.

a

Calculate his expected gross income for the year.

b

Calculate how much he must deduct from his gross income each month to pay his tax and superannuation.

Income tax
49

The following table shows the tax rates for 2018 to 2019:

Resident Tax Rate (2018-2019) Table

Taxable incomeTax on this income
\$0 \text{ - }\$ 18\,200\text{Nil}
\$18\,201 \text{ - }\$ 37\,000\$0.19\text{ for each } \$1 \text{ over } \$18\,200
\$37\,001 \text{ - }\$ 90\,000\$3572 \text { plus } \$0.325 \text{ for each } \$1 \text{ over }\$37\,000
\$90\,001 \text{ - }\$ 180\,000\$20\,797 \text { plus } \$0.37 \text{ for each } \$1 \text{ over } \$90\,000
\$180\,001 \text{ and over }\$54\,097 \text { plus } \$0.45 \text{ for each } \$1 \text{ over } \$180\,000

Calculate the income tax payable for the following taxable incomes:

a

\$8326

b

\$36\,810

c

\$53\,395

d

\$146\,664

e

\$194\,388

f
\$158\,810
50

Last financial year, Roxanne's taxable income was \$157\,872. Based on the Resident Tax Rate (2018-2019) table, calculate:

a

The income tax payable on Roxanne's income.

b

The Medicare levy payable, given that it is 2\% of taxable income.

c

The total amount Roxanne needs to pay in income tax and Medicare levy.

51

Ivan is a teacher who earns an annual salary of \$40\,800. He earns an additional \$4520 per year from private tutoring. He is allowed various tax deductions (for resource books etc.) amounting to \$786, and he has paid tax instalments of \$4880 during the year. Find:

a

His total gross income.

b

His taxable income.

c

His tax payable using the Resident Tax Rate (2018-2019) table.

d

The tax amount he still owes.

52

Hermione earned a taxable income of \$91\,354 in the last financial year. Throughout the year, her employer deducted a total of \$22\,386.15 in PAYG tax instalments.

a

Calculate how much Hermione must pay in income tax for the year using the Resident Tax Rate (2018-2019) table.

b

Hermione also owes a Medicare levy of \$1827.08, in addition to her income tax. Determine whether she will receive a refund or have tax owing.

c

Find the tax amount she still owes.

53

Sharon is a project manager with a taxable income of \$97\,192. Throughout the year, her employer has deducted \$553 per week in tax instalments.

a

Calculate Sharon's tax payable using the Resident Tax Rate (2018-2019) table.

b

Calculate the Medicare Levy, which is 2\% of taxable income.

c

Since Sharon's employer has deducted more than is needed from her income, Sharon is entitled to a refund for the year. Find the amount of this refund.

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