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MathidiaMathematics Academy
Financial mathematics and modelling
Lesson 74 of 75
Challenge

Tax and exchange rates

Objective. Apply rates accurately in financial contexts.

  1. 1. Learn
  2. 2. Worked example
  3. 3. Practice
  4. 4. Feedback
  5. 5. Continue

Learn: the key idea

Tax and exchange rates develops a connected mathematical idea rather than an isolated trick. Use mathematics to evaluate realistic choices and uncertainty. Begin by representing the quantities or relationships, choose a rule that fits, justify each transformation, and finish by checking units, signs, scale and whether the answer is reasonable.

Worked example

A car worth £8000 depreciates 20% in one year.

£8000.00
Money illustration for £8000
  1. 1Identify the known information, the unknown and any conditions.
  2. 2Choose a diagram, table, graph or algebraic representation that exposes the structure.
  3. 3Apply the relevant rule one justified step at a time, keeping exact values where useful.
  4. 4Check by substitution, inverse reasoning or estimation. The result is £6400.

Answer: £6400

Concept mastery

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Practice

Practice happens on its own screen, one question at a time. Answers stay hidden until you submit yours, and you can stop and pick up at the same question later.

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Common mistake. A common error in tax and exchange rates is to copy a procedure without checking its conditions. Label the structure first and justify every sign, operation and unit.

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