Now that Kevin has a steady income, he has decided to start saving - Junior Cycle Business Studies - Question c - 2022
Question c
Now that Kevin has a steady income, he has decided to start saving.
(i) List three reasons for saving.
1.
2.
3.
(ii) Interest earned from savings is subject to DI... show full transcript
Worked Solution & Example Answer:Now that Kevin has a steady income, he has decided to start saving - Junior Cycle Business Studies - Question c - 2022
Step 1
List three reasons for saving.
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Answer
For future planned expenditure or emergencies.
For major family events or retirement.
To improve credit rating or earn interest.
Step 2
Interest earned from savings is subject to DIRT. What does DIRT stand for?
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Answer
D - Deposit
I - Interest
R - Retention
T - Tax
Step 3
Calculate the interest for An Post.
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Answer
Workings:
€8,000
× 3%
× 1 year
= €240 interest.
Total savings: €8,000 + €240 = €8,240.
Step 4
Calculate the interest for Commercial Bank.
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