Functional Skills Maths L2

Money and Financial Maths

30 free practice questions with explanations

PassNova has 30 free Functional Skills Maths L2 practice questions on Money and Financial Maths, each with a clear explanation. Practise them in the browser with instant feedback — 100% free, no sign-up, on any device. Updated for 2026.

Sample questions

Money and Financial Maths: example questions & answers

12 worked examples with answers and explanations below. Practise all 30 Money and Financial Maths questions free in the browser, with instant feedback on every answer.

  1. A bank account earns 2% interest per year on £500. How much interest is earned in 1 year?

    • A£2
    • B£5
    • C£10
    • D£20

    Answer: Interest = 2% of £500 = 0.02 × £500 = £10.

  2. A worker earns £1,500 gross. Tax and deductions total £300. What is the net pay?

    • A£800
    • B£1,200
    • C£1,400
    • D£1,800

    Answer: Net pay = £1,500 - £300 = £1,200.

  3. A budget allows £400 for food. If spent so far is £280, how much remains?

    • A£120
    • B£220
    • C£280
    • D£400

    Answer: Remaining = £400 - £280 = £120.

  4. An item costs £75. A 20% discount is applied. What is the final price?

    • A£45
    • B£55
    • C£60
    • D£70

    Answer: Discount = 20% of £75 = £15. Final price = £75 - £15 = £60.

  5. A loan of £2,000 has 5% interest. How much interest is owed?

    • A£50
    • B£100
    • C£200
    • D£500

    Answer: Interest = 5% of £2,000 = 0.05 × £2,000 = £100.

  6. A mobile phone contract costs £35 per month. What is the annual cost?

    • A£35
    • B£105
    • C£350
    • D£420

    Answer: Annual cost = £35 × 12 = £420.

  7. A savings account pays 3% interest per year. How much interest is earned on £1,000?

    • A£3
    • B£30
    • C£300
    • D£3,000

    Answer: Interest = 3% of £1,000 = 0.03 × £1,000 = £30.

  8. A utility bill is £250 per quarter. What is the annual cost?

    • A£250
    • B£500
    • C£750
    • D£1,000

    Answer: Annual cost = £250 × 4 = £1,000.

  9. A retailer buys an item for £20. They mark it up by 50%. What is the selling price?

    • A£20
    • B£25
    • C£30
    • D£40

    Answer: Mark up = 50% of £20 = £10. Selling price = £20 + £10 = £30.

  10. A salary is £24,000 per year. How much is earned per month?

    • A£1,000
    • B£1,500
    • C£2,000
    • D£3,000

    Answer: Monthly salary = £24,000 ÷ 12 = £2,000.

  11. A deposit of £100 earns 4% interest over 2 years. How much interest is earned?

    • A£4
    • B£8
    • C£80
    • D£104

    Answer: Interest = 4% of £100 = £4 per year. Over 2 years = £4 × 2 = £8 (assuming simple interest).

  12. A car costs £15,000. A buyer pays a 10% deposit. How much is the deposit?

    • A£1,000
    • B£1,500
    • C£5,000
    • D£13,500

    Answer: Deposit = 10% of £15,000 = £1,500.

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