SmarterEd

Aussie Maths & Science Teachers: Save your time with SmarterEd

Financial Maths, STD1 EQ-Bank 14

The table shows Youth Allowance payment rates per fortnight.

  1. Helen is single and receives the maximum Age Pension payment. She is entitled to the Pension Supplement and Energy Supplement. Calculate her total Age Pension payment per fortnight.   (1 mark)
  2. Helen earns $290 per fortnight from part-time work. Her pension is reduced by 50 cents for each dollar earned over $218 per fortnight. Calculate Helen's reduced Age Pension payment.   (2 mark)
Show Answers Only

a.    \($1178.70\)

b.    \($1,142.70\ \text{per fortnight}\)

Show Worked Solution

a.    \(\text{Total Age Pension}= 1079.70+84.90+14.10=$1178.70\)

b.    \(\text{Income over free area} =290-218=$72\)

\(\text{Reduction in pension} = 0.50\times 72=$36\)

\(\text{Reduced Age Pension} = 1178.70-36=$1,142.70\)

\(\therefore\ \text{Helen receives }$1,142.70\ \text{per fortnight}\)