A financial problem may combine fixed fees, percentage charges and bands. Translate the supplied schedule into separate costs before adding. Keep units and currency clear, and round money at the requested stage. Example An illustrative tax schedule charges nothing on the first $20000 and 5% on the next $10000. For taxable income of $26000, tax is 0.05(26000-20000)=$300; the rate applies only to that band. A purchase plan requires a $180 deposit and 12 monthly payments of $65. Its total cost is 180+12(65)=$960. Against a cash price of $900, the extra cost is $60, or 60900 x 100%=6 23% of the cash price. This comparison does not give an annual interest rate. Include every stated fee and use the time period the question asks about.

A financial problem may combine fixed fees, percentage charges and bands. Translate the supplied schedule into separate costs before adding. Keep units and currency clear, and round money at the requested stage.

An illustrative tax schedule charges nothing on the first $\$20000$ and $5\%$ on the next $\$10000$. For taxable income of $\$26000$, tax is $0.05(26000-20000)=\$300$; the rate applies only to that band.

A purchase plan requires a $\$180$ deposit and $12$ monthly payments of $\$65$. Its total cost is $180+12(65)=\$960$. Against a cash price of $\$900$, the extra cost is $\$60$, or $\dfrac{60}{900}\times100\%=6\dfrac23\%$ of the cash price.

This comparison does not give an annual interest rate. Include every stated fee and use the time period the question asks about.

Reading financial schedules

Reading financial schedules