Revision Chapter 2

Revision Chapter 2

3rd years - DLE

Explain why the interest on a loan is higher than interest on savings.

On your savings you get 0.25% interest while the inflation is 1.2%. Calculate the changes in purchasing power using index numbers.

Explain why investing in shares are at higher risk than investing in bonds.

You borrow € 4,500 and repays in monthly instalments of € 110. The duration is 4 years. Calculate the credit costs.

Which savings motive do you recognize?
You intend to live on your own, but you are not able to rent a house.

1. Saving for a goal
2. Saving out of precaution
3. Saving for interest

Which savings motive do you recognize?
The health insurance bill was due this month; now you have no money left.

1. Saving for a goal
2. Saving out of precaution
3. Saving for interest

Which savings motive do you recognize?
You really want to buy the new PlayStation.

1. Saving for a goal
2. Saving out of precaution
3. Saving for interest

Your parents want to buy a new car. Why is a mortgage not an option?

You buy an appartment for € 135,000. You finance this purchase with a 30 year during linear mortgage (3.5%). Calculate the total expenses on this mortgage in the first month.

What is the difference between a linear mortgage and a annuity mortgage?

Why is insuring based on solidarity?

You take out a health insurance (€ 101.25 a month) + extra insurance for fysiotherapy (€7.75 amonth extra. Calculate the insurance costs per year.

What is moral hazard?

The government discourages consuming fossil fuels, softdrinks, tobacco and alcohol. What is the tax measure the government uses in this case?

One on 20 bycicles, on average, will be stolen. A bycicle costs € 1,150, the insurance premium is € 6.50 a month. The costs of this insurance are more than the risk. Prove this with a calculation.

From a gross wage of € 435 a net wage of € 304.50 will be left over. Calculate the payroll tax rate (%).

Your monthly (net) wage is € 2,155. You pay € 380 income tax and € 134 social premiums a month. Calculate the gross wage in a year.

A diary costs € 13.45 excluding 21% VAT. Calculate the price inclusing VAT.

A handmade wooden stool costs € 250.47 including 21% VAT. Calculate the price excluding VAT.