Managing money (revision)

17.1 Earning money

17.2 Borrowing and investing

17.3 Buying and selling

People who are formally employed may be paid a salary, wage or earn commission.

The amount a person earns before deductions is the gross earnings. The amount they actually are paid after deductions is their net earnings.

Employers may deduct amounts from employees' earnings such as insurance, union dues, medical aid and taxes.

If the amount of interest paid or charged is the same for each year, then it is called simple interest.

When the interest for one year is added to the investment and the interest for the next year is calculated on the increased investment, it is called compound interest.

The original amount invested or borrowed is called the principal.

For simple interest, the interest per annum = interest rate x the principal.

 $I=\frac{PRT}{100}$  

 $V=P\left(1+\frac{r}{100}\right)^n$