Financial Maths, STD2 EQ-Bank 14 MC

Emma is 20 years old, single with no children, and lives away from her parents' home to study.

She receives the maximum Youth Allowance payment of $663.30 per fortnight.

Emma earns $420 per fortnight from part-time work. Her Youth Allowance is reduced by 50 cents for each dollar earned over $236 per fortnight.

What is Emma's total fortnightly income (including her Youth Allowance payment and earnings)?

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$B$

Show Worked Solution

$\text{Maximum Youth Allowance} = $663.30$

$\text{Income over free area} = 420-236 = $184$

$\text{Reduction in payment} = 0.50\times 184 = $92$

$\text{JobSeeker Payment received} = 663.30-92 = $571.30$

$\therefore\ \text{Total fortnightly income} = 571.30+420 = $991.30$

$\Rightarrow B$