# 3.2 Maths for personal finance

Students will be expected to develop and demonstrate confidence and competence in the understanding and application of the following calculations in the solution of problems relating to personal finance.

## F1 Numerical calculations

Content

F1.1

substituting numerical values into formulae, spreadsheets and financial expressions

including bank accounts

F1.2

using conventional notation for priority of operations, including brackets, powers, roots and reciprocals

F1.3

applying and interpreting limits of accuracy, specifying simple error intervals due to truncation or rounding

F1.4

finding approximate solutions to problems in financial contexts

## F2 Percentages

Content

F2.1

interpreting percentages and percentage changes as a fraction or a decimal and interpreting these multiplicatively

F2.2

expressing one quantity as a percentage of another

F2.3

comparing two quantities using percentages

F2.4

working with percentages over 100%

F2.5

solving problems involving percentage change

including percentage increase/decrease and original value problems

including simple and compound interest

## F3 Interest rates

Content

F3.1

simple and compound interest

Annual Equivalent Rate (AER)

F3.2

savings and investments

## F4 Repayments and the cost of credit

Content

F4.1

student loans and mortgages

Annual Percentage Rate (APR)

## F5 Graphical representation

Content

F5.1

graphical representation

plotting points to create graphs and interpreting results from graphs in financial contexts

## F6 Taxation

Content

F6.1

income tax, National Insurance, Value Added Tax (VAT)

## F7 Solution to financial problems

Content

F7.1

the effect of inflation

Retail Price Index (RPI), Consumer Price Index (CPI)

F7.2

setting up, solving and interpreting the solutions to financial problems, including those that involve compound interest using iterative methods

F7.3

currency exchange rates including commission

F7.4

budgeting