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ScotlandApplications of MathematicsQuick questions

Finance

Quick questions on Financial planning, tax and inflation - SQA Higher Applications of Maths

3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Someone earns £25000\pounds 25\,000 with a £12570\pounds 12\,570 tax-free allowance and a 20%20\% rate above it. Find the income tax. [2 marks]
What is q2?
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A £500\pounds 500 item rises with inflation of 5%5\% a year. Find its price in 22 years. [2 marks]
What is q3?
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Explain why a higher insurance excess usually comes with a lower premium. [2 marks]

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