smc-831-50-Stamp Duty

v1 Financial Maths, STD2 F1 SM-Bank 1

Samantha buys a luxury boat with a market value of $78 000.

Stamp duty is calculated on the boat as follows:

4% of market value up to $50 000
6% of market value over $50 000

Calculate the amount of stamp duty payable by Samantha. (2 marks)

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`$3680`

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`text(Stamp Duty)`	`= 4text(%) xx 50\ 000+6text(%) xx (78\ 000-50\ 000)`
	`= 4text(%) xx 50\ 000+6text(%) xx 28\ 000`
	`=$3680`

Financial Maths, STD2 F1 SM-Bank 5

Alex is buying a used car which has a sale price of $13 380. In addition to the sale price there are the following costs:

Stamp Duty for this car is calculated at $3 for every $100, or part thereof, of the sale price.
Calculate the Stamp Duty payable. (1 mark)

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Alex wishes to take out comprehensive insurance for the car for 12 months.

The cost of comprehensive insurance is calculated using the following:

Find the total amount that Alex will need to pay for comprehensive insurance. (3 marks)

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Alex has decided he will take out the comprehensive car insurance rather than the less expensive non-compulsory third-party car insurance.
What extra cover is provided by the comprehensive car insurance? (1 mark)

--- 2 WORK AREA LINES (style=lined) ---

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`$402`
`$985.74`
`text(Comprehensive insurance covers Alex)`
`text(for damage done to his own car as well.)`

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♦♦♦ Mean mark 12%
IMPORTANT: “or part thereof ..” in the question requires students to round up to 134 to get the right multiple of $3 for their calculation.

i.	`($13\ 380)/100 = 133.8`

`:.\ text(Stamp duty)`	`= 134 xx $3`
	`= $402`

ii.

`text(Base rate) = $845`

`text(FSL) =\ text(1%) xx 845 = $8.45`

`text(Stamp)`	`=\ text(5.5%) xx(845 + 8.45)`
	`= 46.9397…`
	`= $46.94\ text{(nearest cent)}`

`text(GST)`	`= 10 text(%) xx(845 + 8.45)`
	`= 85.345`
	`= $85.35`

`:.\ text(Total cost)`	`= 845 + 8.45 + 46.94 + 85.35`
	`= $985.74`

♦ Mean mark 34%.

iii.	`text(Comprehensive insurance covers Alex)`
	`text(for damage done to his own car as well.)`

Financial Maths, STD2 F1 SM-Bank 1

Ralph buys a utility vehicle with a market value of $63 500.

Stamp duty is calculated on the vehicle as follows:

3% of market value up to $45 000
5% of market value over $45 000

Calculate the amount of stamp duty payable by Ralph. (2 marks)

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`$2275`

Show Worked Solution

`text(Stamp Duty)`	`= 3text(%) xx 45\ 000 + 5text(%) xx (63\ 500 – 45\ 000)`
	`= 3text(%) xx 45\ 000 + 5text(%) xx 18\ 500`
	`= $2275`