Financial Maths, STD2 EQ-Bank 13 MC

Sarah is single with no children and receives the maximum JobSeeker Payment of $793.60 per fortnight.

She earns $350 per fortnight from casual work. The JobSeeker Payment is reduced by 50 cents for each dollar earned over $150 per fortnight.

What is Sarah's total fortnightly income (including her JobSeeker Payment and earnings)?

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$D$

Show Worked Solution

$\text{Maximum JobSeeker Payment (single, no children)} = $793.60$

$\text{Income over free area} = 350-150 = $200$

$\text{Reduction in payment} = 0.50\times 200 = $100$

$\text{JobSeeker Payment received} = 793.60-100 = $693.60$

$\therefore\ \text{Total fortnightly income} = 693.60+350 = $1043.60$

$\Rightarrow D$