This article was first published in the second quarter 2017 edition of Personal Finance magazine.

(Answers at the end.)

1. You are earning compound interest of 10% a year on an investment. How long will it take to double your money?

(a) About 5 years;

(b) About 7 years; or

(c) Exactly 10 years.

2. Up to how much of your annual taxable income or remuneration (whichever is higher) can be claimed as an income tax deduction when you invest it in a pension, provident or retirement annuity fund?

(a) 12.5 percent;

(b) 15 percent; or

(c) 27.5 percent.

3. Which of these taxes are not levied on a tax-free savings account?

(a) Dividends tax;

(b) Capital gains tax;

(c) Income tax on interest earned; or

(d) All of the above.

4. Of the following three types of unit trust funds, which poses the highest risk, but also has the potential to earn the highest returns?

(a) Multi-asset funds;

(b) Equity funds; or

(c) Money-market funds.

5. If your medical condition is a prescribed minimum benefit, your medical scheme:

(a) Is obliged by law to pay the bill in full;

(b) Can insist you use certain providers in order to enjoy cover in full;

(c) Can charge a co-payment for failure to use a particular provider only if you the rules of the scheme provide for this; or

(d) All of the above.

6. What is the maximum interest that you can be charged on your credit card debt?

(a) 21 percent;

(b) It depends on your credit score; or

(c) Repo rate plus 14 percent.

7. You have insured your household contents for R1.5 million, but the actual replacement value of your belongings is R2 million. You get burgled and suffer a relatively small loss of R100 000. Your insurer applies the “average clause”, which means: 

(a) You’re covered in full;

(b) You’re not covered at all; or 

(c) You will get paid out in proportion to the under-insurance, that is, three-quarters of R100 000. 

8. How long does a civil court judgment stay on your credit report?

(a) Two years;

(b) Until you’ve paid the debt; or

(c) Five years, or until the judgment is rescinded.

9. What is the maximum percentage of its portfolio that a regulation 28-compliant investment fund may allocate to equity investments?

(a) 50 percent;

(b) 75 percent; or

(c) 90 percent.

10. Your medical scheme can terminate your membership if you:

(a) Claim too often;

(b) Resign from your job; or

(c) Provide false information or fail to disclose information.

Answers: 1b, 2c, 3d, 4b, 5d, 6a, 7c, 8c, 9b, 10c