1_ A 3^rd year apprentice plumber earns $16.55 an hour and a 4^th year apprentice plumber earns $21.06. What is the pay increase as a percentage? Remember, when you convert to percentage you take the smaller amount and divide it by the higher amount and then multiply the answer by 100 and add that all important percentage sign.

Select one:a.

30%

b.

29.5%

c.

27.1%

d.

27.25%

2_ Their base pay has also progressed to $21.06 per hour.

If they had worked a total of 42.5 hours from Monday to Friday, calculate the employees weekly pay, both GROSS and NET pay using the pay calculatorto calculate the gross and net pay (factor in both the Medicare levy, and the income tax)

Select one:a.

Gross - $895.05 & Net - $770.05

b.Gross - $895.05 & Net - $125.00c.

Gross - $895.05 & Net - $805.55

d.

Gross $895.05 & Net - $787.95

3_ There are 3 jobs available for a fully qualified plumber with the following pay rates/salaries for each available position:

Job 1) $55,000 per year, based on a 32 hours per week

Job 2) $1,500 per week based on 38 hours per week

Job 3) $5,420 per month based on 38 hours per week.

Which is the highest paid position and show how you worked this out?

4_ Hint: The best way to work this out is figure out what the hourly rate is for each position. This means you can check like for like. In any maths problems getting things into a like format is the key.

5_ If you are employed, you and your employer can agree to pay a portion of yourpre-tax salaryas an extra contribution to super. This is commonly known as asalary sacrifice. It can be tax-effective if you earn more than $37,000 per year.

These type of contribution is a maximum of $25,000 per financial year. It iscappedat this amount. This means the total of your employer and salary sacrificed contributions must not be more than $25,000 each year.

For example:

A person earns $45,000 in the 2019-2020 financial year. Which means they fall into thetax bracketof:

$3,572 plus 32.5c for each $1 over $37,000

Meaning they will pay over $6,000 in income tax per year, with an annual 'take home' pay of approximately $39,000.

If they decided tosalary sacrifice$10,000 per year, their taxable income would now be $35,000. This means they now fall into the tax bracket of:

19c for each $1 over $18,200

Now they will only pay$3,192.00 in income tax per year,with an annual 'take home' pay of approximately $31,800.

They will of course have less money in their bank each week, but they will have significantly more in their super fund to enjoy later in life and receive tax cuts along the way.

Explain the benefits of making additional pre-tax super contributions.

6_ This question is requiring you to create a side by side of comparison of TWO employees, who earn the same amount of money each week.

Employee A is making an additional Super contribution of $75 'after tax', which means, deductions have come out of their gross pay and then they decided to put some extra money ion their super fund.

Employee B is has set up a 'salary sacrifice' where an additional Super contribution of $75 is being made 'before tax', which means they have money come out of their gross pay but before any deductions have been made, so their gross income will be less

Both the employees earn $895.05 each week.

You will need work out if there are any financial benefits of making additional contributions 'before tax' or making contributions 'after tax.'

Part of the table has been completed for you, but you will need to work out the GROSS pay, the amount of Income Tax and the Net pay of both employees.

You must display your comparison in the table provided.

Use the pay calculator to help calculating the income tax payable. For the sake of this tax, don't include the Medicare Levi in the income tax.

Employee A (After Tax Contribution)	Employee B (Before Tax Contribution)
Salary	$895.05
Salary Sacrifice Contributions	N/A
After Tax Contributions	$75
Taxable Income (Gross)	$
Income Tax	$
Net Pay	$

7_ I = P x r x t

This break down to simple interest(I) is calculated by multiplyingPrincipal(p) times theRate(r) times the number ofTime(t) periods.

Example:You invest $100 (the principal) at a 5% (r) annual rate for 1 year (t). The simple interest calculation is:

Pxrxt=I

$100x5%x1 year=$5

$100x.05x1 year=$5

Try the example below.

If you deposited $5,500 into a savings account with a rate of 2.5%, what is the interest you will receive after 24 months?

Show your working out.

8_ The employee decides to put $200 each month into a savings account and decides that saving for 2 years is a good amount of time.

Commonwealth Bank have a savings account called 'Netbank Saver', which seems like a good first savings account.

The Netbank Saver offers 1.55% interest for the first 5 months and then 0.10% interest after the first 5 months.

Use the savings calculatorto work out how much will have saved and how much interest has been earned.

Did you know:

It is better to save a smaller regular amount than a large amount every so often. Savings is about having a habit of saving as much as it is about the amount.

You pay high levels of interest on credit cards etc but earn much less interest on savings. Why do you think that is?

NetBank Saver	Savings	Interest Earned
Interest Rate	1.55%	5 months
Interest Rate	0.1%	19 months
Total