2.  Wage is classified at level 3 ($35,001-$80,000)  70,000 - 35,001 = $34,999  34,999 x 0.30 (30c for each dollar over $35,001) = $10,499.70  10,499.7 + 4,350 = $14,849.70 = $14,850.00 (tax rounded to nearest dollar)

3.  70,000 - 14,849.7 = $55,150.3  55,150.3 12 = $4,595.86 (take home wage per month)

4.  Did you make a profit or loss?  4,000 – 5,000 = -$1,000 (loss)  How much profit or loss did you make in a percentage?  1,000 x 100 5,000 = 20% (loss)

5.  What is your actual annual income?  8% = 4,000  1% = 4,000 8 = $500  100% = 500 x 100  = $50000 (total annual income)

6.  Calculate the money owed after 25 years.  Price: $375,000  25 x 12 = 300 (months in 25 years)  5/12 = 0.41667% (rate per month)  375, 000 x (1 + 0.417)^300 100  = $1,306,784.63 Price: $375 000

7.  What would be the monthly repayment?  Price: $40,000  40,000 x (1 + 8 x 3) 100 = $49,600  49,600 (3 x 12) = $1,377.78

8.  Plan 1: simple interest at 5% per annum  Plan 2: compound interest at 5% per annum compounding every six months  P= 8,500, r= 5, T= 1 (year) a) Calculate the total interest earned if you invested your money using ‘Plan1’ for a year.  8,500 x 5 x 1 100  = $425.00 b) Calculate to the nearest cent, the total interest earned if you invested your money using ‘Plan 2’ for a year.  8,500 x (1 + 5_ )² - 8,500 100  = $871.25 c) State which investment plan is better: ‘Plan 2’ is better in this case because the interest earned is more than double that of the interest earned in ‘Plan 1’.