Financial Calculations (Pilot) 9984

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1 Centre Number Candidate Number For Examiner s Use Surname Other Names Candidate Signature Examiner s Initials Free-Standing Mathematics Qualification Intermediate Level June 2012 Financial Calculations (Pilot) 9984 Unit 4 Thursday 24 May 2012 For this paper you must have: a clean copy of the Data Sheet (enclosed) a calculator a protractor a ruler am to am Question TOTAL Mark Time allowed 1 hour 15 minutes Instructions Use black ink or black ball-point pen. Pencil should only be used for drawing. Fill in the es at the top of this page. Answer all questions. You must answer the questions in the spaces provided. around each page. Do all rough work in this book. Cross through any work that you do not want to be marked. You may not refer to the copy of the Data Sheet that was available prior to this examination. A clean copy is enclosed for your use. Information The marks for questions are shown in brackets. The maximum mark for this paper is 50. You are expected to use a calculator where appropriate. Advice In all calculations, show clearly how you work out your answer. (JUN ) 6/6/6/ 9984

2 2 Section A Use County Photography on page 2 of the Data Sheet. 1 (a) Jamie buys a camera which normally costs 282. He is given the discount of 1 6. What is the cost of this camera when Jamie is given the 1 6 reduction? 1 (b) In the Canary Islands, a similar camera is on sale for a 225. The exchange rate is a 1.19 to 1. Calculate the cost, in pounds, of the camera in the Canary Islands. 1 (c) Jimmy and Annabel spend 88 on a camera. They divide this cost in the ratio 3:5, with Jimmy paying less. How much does Jimmy pay? 9 (02)

3 3 Section B Use Bank accounts on page 3 of the Data Sheet. 2 Tomasz deposits 900 in the Bronze account for 9 months. It earns compound interest at the rate of 0.88 % paid every 3 months. Starting value ( ) Interest ( ) Final value ( ) First 3 months Second 3 months Third 3 months Complete the table above. (4 marks) Space for working 4 Turn over for the next question Turn over s (03)

4 4 There are no questions printed on this page DO NOT WRITE ON THIS PAGE ANSWER IN THE SPACES PROVIDED (04)

5 5 Section C Use A1 Credit on page 3 of the Data Sheet. 3 Jane and Cameron borrow 1500 to buy a home theatre system. They repay the loan over 36 months. 3 (a) Find the monthly repayment which they make. (1 mark) 3 (b) By finding the total repayments which Jane and Cameron make to repay the loan, calculate the total interest which they are charged for borrowing this money. 3 (c) Express the total interest which Jane and Cameron are charged for borrowing this money as a percentage of the amount borrowed. (2 marks) 6 Turn over for the next question Turn over s (05)

6 6 Section D Use Holiday cost on page 4 of the Data Sheet. 4 (a) Complete columns D and E of the spreadsheet. Give the percentages to the nearest integer. (5 marks) A B C D E 1 Resort Typical cost departing 31 October ( ) Typical cost departing 24 October ( ) Extra cost ( ) Extra cost as a percentage of the cost departing 31 October 2 Chania, Paradice Hotel Sharm El Sheikh, Radisson Blu Resort Gran Canaria, Barcelos Las Margaritas Hotel Orlando, the Peabody Hotel Lanzarote, Timanfaya Palace Hotel Space for working (06)

7 7 4 (b) State a formula which would give the content of cell E4. (1 mark) 4 (c) The cost of a holiday to the Peabody Hotel in Orlando from Gatwick on 31 October was This was 55.6 % of the price charged for an equivalent holiday departing on 24 October. Calculate the price of the equivalent holiday departing on 24 October. 9 Turn over for the next question Turn over s (07)

8 8 Section E Use Credit cards on page 5 of the Data Sheet. 5 (a) The table below gives, for some cards, the time spent in clearing a debt of 1000 by paying just the minimum required by each company each month. It also gives the total amount of interest charged if the interest rate remains at 15.9 %. Credit card Time to clear debt Total interest charged ( ) American Express 15 years 00 months 846 Barclaycard 17 years 6 months 1032 Egg 21 years 3 months 1327 MBNA 4 years 8 months 390 Nationwide 11 years 11 months 625 The total interest charged on the MBNA credit card is the least of those given in the table above. Why might a person not want to use the MBNA card? (1 mark) 5 (b) In 2009, there were 63 million credit cards in the UK. The total debt on these credit cards was million. Using an approximation, estimate the average debt on each credit card. You must show your approximations and all your working. 4 (08)

9 9 6 In November 2009, the interest rate on the Capital One Bank Classic Visa credit card was raised to an annual interest rate of 34.9 % per year. This was one of the highest interest rates charged by a credit card company. To calculate the monthly interest rate, r, the formula 1 r ¼ð1þRÞ n 1 may be used, where R is the annual interest rate, which must be expressed as a decimal, and n is the number of repayments made per year. Calculate the monthly interest rate for this card, expressed as a percentage. 3 Turn over for the next question Turn over s (09)

10 10 Section F Use Taxation on page 6 of the Data Sheet. 7 Jeremy earned in the year and had a tax-free allowance of Calculate: 7 (a) Jeremy s taxable income; 7 (b) the amount of income tax which Jeremy paid in the year. (2 marks) (5 marks) 7 (10)

11 11 8 Stacey earns 658 per month. Stacey is not contracted out for National Insurance contributions. Calculate the amount which Stacey pays monthly in National Insurance contributions. (4 marks) 4 Turn over for the next question Turn over s (11)

12 12 Section G 9 A shopkeeper reduces all his usual prices by 70 % for a sale. The shopkeeper sends previous customers a voucher giving an additional discount of 25 % off all the sale prices. Gordon buys an article using a voucher. What percentage of the usual price does Gordon pay? (4 marks) 4 END OF QUESTIONS ACKNOWLEDGEMENT OF COPYRIGHT-HOLDERS AND PUBLISHERS Section D: The half-term breaks that cost 250% more by Sean Poulter, Daily Mail, 23 October Section E: The credit card payments trap by James Coney, Daily Mail, 11 November Copyright ª 2012 AQA and its licensors. All rights reserved. (12)

Free-Standing Mathematics Qualification Intermediate Level June 2012 REMINDER TO CANDIDATES

Free-Standing Mathematics Qualification Intermediate Level June 2012 Financial Calculations (Pilot) 9984/PM Unit 4 Preliminary Material Data Sheet To be opened and issued to candidates between Thursday