Calculating Interest and DIRT (Junior Cert Business Studies): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What is interest?
What is interest?
Reward for saving money in a bank
What does 'balance' mean in banking?
What does 'balance' mean in banking?
Total money in account at given time
How does simple interest work each year?
How does simple interest work each year?
It stays the same each year
If €500 earns 3% simple interest, what is the interest for one year?
If €500 earns 3% simple interest, what is the interest for one year?
€15
What is compound interest calculated on?
What is compound interest calculated on?
Total balance including prior interest
In Sarah's example, why does compound interest earn more than simple?
In Sarah's example, why does compound interest earn more than simple?
Interest is earned on interest
What does AER stand for?
What does AER stand for?
Annual Equivalent Rate
What is a key advantage of fixed interest rates?
What is a key advantage of fixed interest rates?
Certainty about earnings
What characterises variable interest rates?
What characterises variable interest rates?
They can increase or decrease
What does DIRT stand for?
What does DIRT stand for?
Deposit Interest Retention Tax
When is DIRT tax deducted?
When is DIRT tax deducted?
Automatically before you receive it
If interest earned is €60 and DIRT is 33%, how much DIRT is deducted?
If interest earned is €60 and DIRT is 33%, how much DIRT is deducted?
€19.80