Mock exam paper B P1 Section B Higher Level






(160 marks)


  • All questions carry equal marks.
  • Attempt any FOUR questions.
  • Marks will be awarded for layout and presentation including, where appropriate, folios and dates.
  • Dates should show the day, month and year.
  • Calculators may be used.

1. This is a Household Budget Question.

Answer all parts of this question

(A) On page 10 of Section A is an Original and a Revised Budget form for the Mahon household from January to March 2012. After preparing the Original Budget Mr. Mahon got promoted and his salary increased. In Ms. Mahon’s job her hours were reduced and she faced a drop in salary. The Mahon household decided to revise their Budget due to the changed circumstances.

You are required to complete the revised budget taking the following into account:

  • Mr. Mahon’s annual salary will be €21,600 net payable monthly. He also expects to receive a bonus of €800 net in March.
  • Ms. Mahon will earn €800 net per month.
  • Mortgage repayment will increase 3% from March.
  • The household costs will reduce by 8% per month.
  • Car insurance will reduce by €15 per month from January.
  • Car costs will reduce to €90 per month from 1 February 2012.
  • The Loan is unchanged.
  • Entertainment cost will reduce by 20%.
  • Due to changed family circumstances the planned holiday will be postponed.
  • All other income and expenditure will remain the same. (30)

(B) (i) In the Original Budget, name the month in which planned income is greater than

planned expenditure. (Answer in the space provided on page 9 of Section A)

(ii) In the Original Budget, by how much did the Mahon household expect to overspend in the first three months of the year. (Answer on page 10 of Section A.)

(iii) Give one reason why the repayments on the mortgage might increase. (Answer on page 10 of Section A.)

(iv) Is the Revised Budget a good one? Give two reasons for your answer. (Answer on page 10 ...

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