. Widgets Magazine

Are You Smarter Than A 16-Year-Old?

A third of adults here in West Yorkshire can't answer correctly a series of maths GCSE questions.

The Open University took seven head-scratchers on to the streets, as they launch a new online course to help people manage their money better.

The questions, which covered everyday financial issues such as savings, tax, currency exchange and utilities, beat almost a third of consumers who scored 43% or less in the test.

With personal finance hitting the national curriculum in September, 35% of parents plan to brush up their personal finance knowledge in order to keep up with their children.

The questions are below, to see if you got them correct, click here:

 

1. Kat paid £1,500 for a car in April 2009. In the first year, the value of the car depreciated by 10%. In the second year, the value of the car depreciated by 15%. How much can Kat sell the car for in 2011?

Answer- £1,147.50 (64% of people)

2. Hassan is paid £17,465 a year. His personal tax allowance is £6,475 for the year. If Hassan’s income is taxed at 22%, how much income tax does Hassan pay in a year?

Answer- £2,417.80 (75%)

3. Leonie has £1,750 to invest for 4 years and can choose between 2 different savings accounts. Account 1 pays 3.7% simple interest paid out at the end of each year. Account 2 pays 3.4% compound interest paid at the end of the period. Which account would give Leonie more interest over the 4 year period?

Answer- Account 1 (52%)

4. Jenny wants to buy a new TV but is £320 short. She sees an advert for a loan offering £320 for eight months with a monthly repayment of £46.72. If she takes the loan, how much extra will she have to pay?

Answer- £53.76 (66%)

5. Andrew pays his electricity bill every quarter. These are his September and December readings: September 1: 10453kWh December 1: 12369kWh. His current tariff charges 32.7p for the first 200kWh and then 9.8p per remaining kWh. He can change to a new tariff that will have a standing charge of 47p per day and then charge 10.4p per kWh. September has 30 days, October has 31 days, and November has 30 days. Which plan is cheaper for Andrew for this quarter?

Answer- Current tariff (58%)

6. Rachel is going on holiday to Spain and needs to change £200 into euros. The Bureau de Change in the airport charges 0.6% or £4 to change money, whichever is the greater. How much will changing her money at the airport cost Rachel?

Answer- £4 (68%)

7. Sophie is left £4,300 by her grandfather and decides to invest the money for 2 years. Her bank offers her a choice of two savings accounts. Account 1 pays 3.1% on a monthly basis. Account 2 pays 3.25% annually. Which account will give a higher closing balance with no withdrawals?

Answer- Account 2 (29%)