Financial Maths

F1.1 Interest and Depreciation

Simple Interest

I=PRN
I- simple interest
P- principle
R- rate
N- time

The Amount Owed

A=P+I
A= Accumulated total
P=Principle
I=Interest

Compound Interest

A=P(1+r)n
A – Amount (final balance) or future value of the loan
P – Principal is the initial amount of money borrowed or present value of the
loan
r – Rate of interest per compounding time period expressed as a decimal
n – Number of compounding time periods

GST
To find out GST find 10%of the pre tex price
To find out the total cost of an item add the GST to the pre-tax price.
Alternatively, find 110% of the pre-tax price
To calculate the pre-tax price given the total cost of an item, divide the
total cost by 110%

Straight line deprecation

S=Vº-Dn
S – Salvage value or current value of an item; also referred to as the book
value
Vº – Purchase price of the item; value of the item when n = 0
D – Depreciated amount per time period
n – Number of time periods
F1.2 Earning and managing money

Annual leave loading and bonuses

17.5% x Normal weekly pay x Number of week’s leave

Overtime
Time and a half- normal pay rate x 1.5

Double time rate- normal pay rate x 2

Taxable Income
Gross income – the total amount of money earned

Taxable income = Gross income - Allowable tax deductions

Gross pay, net pay and deductions

Gross pay – total of the employee’s pay including allowances, overtime pay,
commissions and bonuses

Deductions – regular amount of money subtracted from a person’s wage or

salary such as income tax

Net pay = Gross pay - Deductions

Calculating Tax
Tax refund = Tax paid - Tax payable

Tax owing = Tax payable - Tax paid

Medicare Levy

2%
Measurement

M1.1 Practicalities of measurement

Measurement errors

Precision- small unit on the measuring instrument

Absolute Error= 1/2 x limit of reading (precision)

Relative Error
(Absolute error)
± ———————
(Measurement)

Percentage Error
(Absolute error)
± ——————— x 100%
(Measurement)

Writing numbers in standard form

1. Find the first two non-zero digits numbers in standard form

2. Place a decimal point between these two digits.

3. Power of 10 is number of the digits between the new and the old
decimal point.
(Small number - negative value) (large number - positive value)
M1.2 Perimeter, Area and Volume

Pythagoras theorem Area of irregular shapes

c²=a²+b² 1. Divide the composite shape into

two or more plane shapes.
Perimeter
2. Add or subtract the areas of the
Square- 4l plane shapes

Rectangle- 2( 𝑙x𝑏) Trapezoidal Rule

Circle- 2πr A= h/2 (d𝑓+d𝑙)

A – Area of shape
Area of simple shapes
h – Height or distance between the
parallel sides
Square- s²
d𝑓– Distance of first parallel side
Rectangle- 𝑙x𝑏
d𝑙 – Distance of last parallel side
Triangle- ½ x b x h
Surface area of right prism
Paralellogram- 𝑙x𝑏
Cube= 6s²
Rhombus- ½ × 𝑥𝑦
Rectangular Prism= 2hl+2hb+2lb
Trapezium- ½ h(a+b)

Surface area of cylinder and sphere

Area of circles and sectors
Cylinder= 2πr²+2πrh
Circle- πr²
Circle= 4πr²
Area of sector- θ∣360 x πr²

Annulus- π(R²-r²)
Surface area of pyramids and Volume of right prism
cones
Cube
Square Pyramid= s²+4x(1/2sl) V= Ah
= (s²) x s
S- side length of the base = s³

L- slant height of triangular face Rectangular prism

V= Ah
= lb x h
= lbh

Triangular prism
V= Ah
=(1/2 bh) x H

Cone= πr²+πrl

r – radius of the circular base

l – slant height of curved surface

h – perpendicular height of cone

Volume of cylinder and spheres Capacity

Cylinder=πr²h 1m³= 1000L

Sphere= 4/3πr³ 1cm³= 1ml

1m³= 1KL
Volume of pyramid and cones

V= 1/3Ah

Square pyramid= 1/3 x s² x h

Rectangular pyramid= 1/3 x lbh

Triangular pyramid= 1/3 x 1/2bh x H

Cone= 1/3 x πr² x h

M1.3 Units of energy and Mass

Food and Nutrition
1 calorie= 4.184 kilojoules

Energy Consumption
Tera 10¹²

Giga 10⁸

Mega 10⁵

Kilo 10³

Centi 10⁻²

Milli 10⁻³

Micro 10⁻⁶

Nanob 10⁻⁹

1 Kilowatt= 1000 Watts

FINANCIAL MATHS

F1.3 budgeting and Household Bills

Car insurance terms

Car insurance: designed to pay for repairs to a car in the case of an accident
Green slip (CTP): covers drivers who cause injury to another person
Third party property: covers damage caused by your care to someone else property
Comprehensive insurance: covers damage to both your car and the other persons vehicle
No-claim bonus: discount on your insurance premium applied because you have not made any
claims
Excess: upfront amount needed to be paid when you make a claim

Fuel consumption
Amount of fuel (L) x 100
Fuel consumption= ———————————
Distance travelled (km)
Statistical Analysis

S1.1 Classifying data and sampling

Data collection
- Data can be collected from PRIMARY and SECONDARY sources
- Primary source is when you gather the data yourself.
• Observation- data collection does not require a response from people
• Questioning- data is obtained by getting a response from people
- Secondary source is where the data has been collected and is available by doing research

- Census: The entire population is counted

Advantage:
- All of the population is counted in
- Accurate

Disadvantages:
- More paper work
- Costly
- Time consuming

- Sample: selection of the target population is surveyed

Advantage:
- Cheaper
- Less time consuming

Disadvantage:
- Can be biased

- Random sampling: surveyed people are elected by chance

- Stratified sampling: people chosen represents the whole population
- Systematic sampling: items are chosen at regular intervals
- Self-selected sampling: sample that the participants choose to be part of

- Bias:
1. Questionnaire design:
- Use of leading questions
- Emotive nature
- Unfamiliar terminology
2. Sampling data
- Particular responses can be selected from all those received
- Abnormal conditions
- Moderate views lack representation
3. Statistical interpretation bias
- Misleading graphs
Classification of data

Categorical Quantitative

Nominal: NO ORDER e.g colours Discrete: COUNTED EXACT VALUES e.g whole
numbers, shoe sizes

Ordinal: ORDER REQUIRED e.g rankings Continuous: MEASURED e.g decimals, mass,
length

Cumulative frequency

The frequency of the score plus the frequency of all the scores less than that score.

e.g
Class Frequency Cumulative Frequency hy

80-84 2 2

85-89 6 8

90-94 7 15

95-100 3 18

Frequency and cumulative frequency graphs

-Frequency histogram and polygons

-1/2 gap at the start
-Gap between columns
-Histogram (Columns)
-Polygon (line) is the centre on each column
- Goes back home

- no gaps in between the columns

- No 1/2 gap at the start
- Lines are connect at the corner
-Does not return back home
-
Pareto chart

- Used to display categorial (nominal) data.

- 80/20 Pareto Principle is applied
- combination of column and line graph
- Frequency on left hand and ordered from largest
frequency to smallest
- Cumulative frequency percentage labelled on the
right hand side
- To work out cumulative (%)
=
c.ƒ divide c.ƒ total x 100%

Motor vehicle statistics

Vertical Rise
Gradient of line = ————————
Horizontal Run

= Distance
——————— = speed (velocity)
TIME
S1.2 Exploring and describing data

Measures of central tendency

x˜= the sum of the scores over the number of scores (mean)

To calculate the mean from a frequency distribution table:

∑ ƒx
x˜= ———
∑ƒ

To calculate the median from ogives:

1. Find the total of the highest column

2. Calculate position: n+1divide by 2
3. Draw line from position of ogive and read median column

Deciles and Percentiles

Quartiles Deciles Percentiles

4 equal parts 10 equal parts 100 equal parts

1st Quartile - 25% of data 1st decile - 10% of data 1st percentile - 1% of data

2nd Quartile - 50% of data 5th decile - 50% of data 2nd percentile - 2% of data

3rd Quartile - 75% of data 9th decile - 90% of data 90th percentile - 90% of data

Standard deviation
o˜x: standard deviation
sx: sample standard deviation

Identifying outliers
1. Using the median and quartiles
Lower than: Q1 - 1.5 x IQR

Greater than: Q3 +1.5 x IQR

2. Using the mean and standard deviation

Lower than: mean - 3 x Standard deviation

Greater than: mean + 3 x Standard deviation

Describing distributions

Shape Description

Smoothness No breaks or jagged section

Symmetry Data is symmetrical and balanced

Unimodal Data has only one mode or peak

Bimodal Data has two modes or peaks

Multi modal data has many modes or peak

- symmetrical (no skew)- data is balances about a vertical line

- Positively skewed- day is more on the left side
- Negatively skewed- data is more on the right side
Comparing distribution
Mean Advantage - Easy to calculate
- calculate the average
- Depends on every score in the
sample

Disadvantage - Effected by outliers

- Not suitable for categorical
data

Median Advantage - easy to understand

- Best to use is an outlier is in
the data set

Disadvantage - cannot be used fro categorical

data
- May not be true for small sets
of data

Mode Advantage - easy to use

- Most useful fro categorical data
- Not effected by outlier

Disadvantage - if there is no mode in the data

set, or there is more than one
mode in the set, it is very hard
to come to an conclusion
- Mode doesn’t reflect the
middle value
S2 relative frequency and probability

Definition of probability
Probability is calculated using the formula:

Number of favourable outcomes

P (event) = —————————————————
Total number of outcomes

Sample space
Sample space is the all possible outcomes
e.g
S= ( HH, HT, TH, TT )

Probability tree

e.g
To work out probability of (B,B): 9/12 x 9/12

To work out probability of two events (BR, BB) : (9/12 x 9/12) + (9/12 x 3/12)

Range of probabilities
The possibility of an event happening is between 0 and 1

e.g.
To find the possibility of selecting a red marble when the probability of selecting an
white marble is 2/7 and green is 1/8.

P(Red)= 1 - 2/7 - 1/8

Complementary events
Complementary events are two event for which the probabilities have a total of 1. It
covers all possible outcomes to the probability experiment.

e.g
complementary event of tossing a coin and getting a head= tossing a tail

P(event that doesn’t occur) = 1 - P(even that occurs)

Relative frequency
Estimates the chance of something happening.

Number of times an event has occurred

Relative frequency = ————————————————————
Number of trials

Expected frequency

Expected frequency = probability of event occurring x number of trials

Algebra

A1 Formulas and Equations

BAC
10N - 7.5H
Female BAC = ——————
6.8M

10N - 7.5H
Male BAC= ————————
5.5M

N= number of standard drinks

H= number of hours spent drinking

M= persons mass in kg
A2 Linear relationships

Gradient - intercept formula

Rise
m = gradient = ———
Run

c = y-intercept, where the line meets the y axis

y = mx + c

How to plot an linear graph

1. Plot the y-intercept

2. Use gradient (m) to move up
- When it is positive: Rise UP and Run to the RIGHT
- When it is negative: Rise UP and Run to the LEFT

Direct variation

Notation for variation is:

- y is proportional to x

- y varies directly as x
Measurement

M2 Working with time

Longitude and Latitude

Parallels of latitude:
- Equator 0˚ which is a great circle
- North Pole has latitude of 90˚N
- South Pole has latitude of 90˚S
- Angle of latitude is the angle the parallel makes with the Equator

Meridians of longitude:
- Imaginary semicircles that run down the Earth
- Half great circles that meet at the North and South Poles
- Main meridian is known as Prime Meridian 0˚ called Greenwich meridian
- Meridian longitude range from 180˚E to 180˚W

Time zones
• Eastern standard times: based on the 150˚ meridian longitudes (Queensland, NSW)
• Central standard time: 30 minuets being EST (SA, NT)
• Western standard time: based on 120˚E meridian and 2hrs behind EST (WA)