Financial Maths, STD2 EQ-Bank 15 MC

Margaret is single and receives the maximum Age Pension payment of $1,178.70 per fortnight.

She earns $280 per fortnight from part-time work. Her pension is reduced by 50 cents for each dollar earned over $218 per fortnight.

What is Margaret's total fortnightly income (including her Age Pension and earnings)?

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$A$

Show Worked Solution

$\text{Maximum Age Pension} = $663.30$

$\text{Income over free area} = 280-218 = $62$

$\text{Reduction in payment} = 0.50\times 62 = $31$

$\text{Age Pension received} = 1178.70-31 = $1,147.70$

$\therefore\ \text{Total fortnightly income} = 1147.70+280 = $1,427.70$

$\Rightarrow A$