← Applications of Mathematics syllabus

ScotlandApplications of Mathematics

Finance

3 dot points across 3 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How do tax, inflation and insurance affect personal financial planning and the real value of money?

Applying personal financial planning skills, including income tax and national insurance, the effect of inflation on purchasing power, and analysing insurance premiums, excess and risk.
A focused answer to the SQA Higher Applications of Mathematics finance content on personal financial planning, covering income tax and national insurance, inflation and purchasing power, and insurance premiums, excess and risk.
10 min answer →

How do loans, credit cards and APR work, and how do you compare the true cost of borrowing?

Analysing loans, credit cards and other borrowing, calculating repayments and outstanding balances, understanding APR as a measure of the true cost of credit, and comparing borrowing options.
A focused answer to the SQA Higher Applications of Mathematics finance content on borrowing, covering loan repayments and outstanding balances, credit cards and minimum payments, APR as the true cost of credit, and comparing borrowing options.
10 min answer →

How do you find what a sum of money is worth in the future, or what a future sum is worth today?

Calculating the future value of a sum or of regular savings under compound interest, and the present value of a future payment, including comparing savings products and the effect of compounding frequency.
A focused answer to the SQA Higher Applications of Mathematics finance content on the time value of money, covering compound interest, future value of a lump sum and of regular savings, present value of a future payment, and comparing savings products.
10 min answer →