Test. VAT-Value Added Tax

Before proceeding to the solution of examples and problems be sure to read the theoretical part of the lesson 

VAT - Value Added Tax

VAT is 17.5% in this Exercise. 

 1. How much will a computer cost? 

£820 + VAT.

 а)  £965.50;      
 b)  £961.50;     

 c)  £963.50;      
 d)  £967.50.

 2. How much will a washing machine cost?

£450 + VAT.

 а)  £522.75;      
 b)  £528.75;     

 c)  £530.75;      
 d)  £526.75.

 3. How much will a cooker cost?

£630 + VAT.

 а)  £744.25;      
 b)  £738.25;     

 c)  £746.25;      
 d)  £740.25.

 4. Which digital radio is cheaper?

 а)  ;         
 b)  ‘sparks’;     
 c)  ‘electrics’;      
 d)  .

 5. Lionel has a checkup and a filling at the dentist. He is charged

£182 + VAT.

How much does Lionel have to pay?

 а)  £217.85;      
 b)  £213.85;     

 c)  £211.85;      
 d)  £215.85.

 6. Raneer has some new windows fitted. The windows cost

£2750 + VAT.

How much does Raneer pay?

 а)  £3235.25;     

 b)  £3233.25;     

 c)  £3238.25;     

 d)  £3231.25.

 7. Copy and complete the garage bill below.

 а)  £108.05 total;     

 b)  £108.15 total;     

 c)  £108.10 total;     

 d)  £108.30 total.

 8. Callie has a £400 limit. Can she afford to buy a dishwasher which costs

£360 + VAT ?

 а)  no;      
 b)  ;     

 c)  yes;      
 d)  .

 9. Mary’s grandparents offer her £300 towards a new music system. Mary has saved £200. She wants a music system which costs

£420 + VAT.

Has she cnough money to buy this? 

 а)  ;      
 b)  yes;     

 c)  ;      
 d)  no.

10. Copy and complete the bill for certain bathroom items.

 а)  £502.90 total;     

 b)  £502.85 total;     

 c)  £503.10 total;     

 d)  £502.70 total.

11. A TV costs 562 + VAT. Work out how much the TV costs altogether.

 а)  £660.34;     

 b)  £660.35;     

 c)  £660.50;     

 d)  £660.15.

12. A computer costs 899 + VAT. Work out how much the computer costs altogether.

 а)  £1056.32;     

 b)  £1056.30;     

 c)  £1056.34;     

 d)  £1056.33.

Lesson 7. VAT-Value Added Tax

This is money added to the prices of goods and service. This money is collected by the government.

The usual rate of VAT is 17.5%. Fuel for homes is charged at a lower rate of 5%. Some things like books are zero-rated. This means there is no VAT on books.

EXAMPLE:

A TV costs £500 + VAT at 17.5%.

How much does the TV cost?

Test lesson 7

• Test

Other lessons:

Lesson 1. Wages
Lesson 2. Wages-overtime
Lesson 3. Pricing your holiday
Lesson 4. Money for your holiday
Lesson 5. Mobile phones
Lesson 6. Bank accounns
Lesson 8. Electricity, gas and water
Lesson 9. Credit - 1
Lesson 10. Credit - 2
Lesson 11. Credit - 3
Lesson 12. Which is better value?
Lesson 13. Car insurance
Lesson 14. Income tax
Lesson 15. Buying a house
Lesson 16. Council fax
Lesson 17. Old age pension

Test. Bank accounts

Before proceeding to the solution of examples and problems be sure to read the theoretical part of the lesson 

Bank accounns

 1. Pat has £56 in her account. Her bank will charge her £30 if she goes overdrawn. She pays out two cheques, one of £39.19 and another of £27. How much will she now owe the bank?

 а)  £41.13;      
 b)  £40.19;     

 c)  £40.17;      
 d)  £9.19.

 2. Zak’s bank has agreed that he may go up to £50 overdrawn without paying a penalty. If he breaks the agreement, he will have to pay a £35 charge. Zak has £32 in his account. He makes payments of £28, £16.29 and £34.96. How much will Zak now owe the bank?

 а)  £47.25;      
 b)  £49.25;     

 c)  £47.55;      
 d)  £45.25.

 3. Chloe has the same agreement with her bank as Zak in Question 2. Chloe has £93 in her account. She makes payments of £61.14, £73.06 and £25.32. How much will Chloe now owe the bank?

 а)  £116.54;      
 b)  £118.58;     

 c)  £118.52;      
 d)  £116.52.

 4. Lara has £.128.16 in her bank account. She makes payments of £17.11, £32.68 and £41.23. What is the biggest cheque she could now pay out without going overdrawn?

 а)  £38.16;      
 b)  £35.24;     

 c)  £37.14;      
 d)  £39.14.

Colin sends the following cheque to has phone company.

By looking at the cheque earlier in this section, write down:

 5. The sort code.

 а)  32718425;     

 b)  17-26-19;     

 c)  417327;     

 d)  www.sb.co.uk.

 6. The bank account number.

 а)  17-26-19;     

 b)  www.sb.co.uk;     

 c)  32718425;     

 d)  417327.

 7. The website address for the bank.

 а)  www.sb.co.uk;     

 b)  417327;     

 c)  32718425;     

 d)  17-26-19.

 8. The cheque number.

 а)  www.sb.co.uk;     

 b)  32718425;     

 c)  17-26-19;     

 d)  417327.

 9. The bank will not cast this cheque. Explain why.

 а)  ;      
 b)  the amount in figures and words do not agree;     

 c)  ;      
 d)  the amount in figures and words agree.

10. For Questions

write down the correct amount of money for each box above.

 а)  £355.15;      
 b)  £353.15;     

 c)  £353.25;      
 d)  £357.55.

11. For Questions

write down the correct amount of money for each box above.

 а)  £1042.92;     

 b)  £1044.88;     

 c)  £1046.98;     

 d)  £1044.98.

12. For Questions

write down the correct amount of money for each box above.

 а)  £1016.34;     

 b)  £1012.34;     

 c)  £1016.44;     

 d)  £1018.54.

13. For Questions

write down the correct amount of money for each box above.

 а)  £128.40;      
 b)  £120.60;     

 c)  £125.60;      
 d)  £125.80.

14. For Questions

write down the correct amount of money for each box above.

 а)  £783.39;     

 b)  £785.29;     

 c)  £787.29;     

 d)  £785.27.

15. For Questions

write down the correct amount of money for each box above.

 а)  £65;      
 b)  £75;     

 c)  £80;      
 d)  £60.

16. For Questions

write down the correct amount of money for each box above.

 а)  £809.13;     

 b)  £803.03;     

 c)  £807.05;     

 d)  £807.03.

17. For Questions

write down the correct amount of money for each box above.

 а)  £787.08;      
 b)  £785.02;     

 c)  £785.08;      
 d)  £783.14.

18. For Questions

write down the correct amount of money for each box above.

 а)  £783.08;      
 b)  £785.08;     

 c)  £785.06;      
 d)  £787.28.

19. Explain what ‘DD’ shows on a bank statement.

 а)  money taken to pay bills;     

 b)  money put into account;     

 c)  amount overdrawn (owed to bank);     

 d)  money taken out from a cash machine.

20. Explain what ‘ATM’ shows on a bank statement.

 а)  money put into account;     

 b)  amount overdrawn (owed to bank);     

 c)  money taken out from a cash machine;     

 d)  money taken to pay bills.

21. Explain what ‘D’ shows on a bank statement.

 а)  amount overdrawn (owed to bank);     

 b)  money taken out from a cash machine;     

 c)  money taken to pay bills;     

 d)  money put into account.