Date Transaction Deposits Withdrawals Balance 3 August 2009 Salary $ $
|
|
- Jonah Smith
- 5 years ago
- Views:
Transcription
1 CHAPTER REVIEW MULTIPLE CHOICE 1 Anthony earned $1016 in simple interest when he invested $ for 9 months. The rate of simple interest was: A 5.13% B 6.14% C 6.84% D 7.62% E 8.21% 2 With an interest rate of 4.11% p.a., the sum of $634 was earned in simple interest over 2 1 years. The 2 amount invested was close to: A $6170 B $4892 C $7306 D $2937 E $ The Farmbrand dozen eggs (size 67) costs $2.40. With an inflation rate expected to average 3.5% over each of the next 4 years, the dozen eggs will then cost: A $2.50 B $2.60 C $2.70 D $2.75 E $ An investment of $ at 6.15% compounded quarterly to reach $ will take close to: A 3 years B 4 years C 5 years D 6 years E 7 years 5 The points on the graph below show the balance of an investment at the start of each quarter for a period of six years. The same rate of interest applied for these six years. Balance (dollars) Year In relation to this investment, which one of the following statements is true? A Interest is compounding annually and is credited annually. B Interest is compounding annually and is credited quarterly. C Interest is compounding quarterly and is credited quarterly. D Simple interest is paid on the opening balance and is credited annually. E Simple interest is paid on the opening balance and is credited quarterly. EXAM TIP This question concerned the growth of an investment, but was formulated graphically rather than numerically. The aim was to test conceptual understanding of the different forms of investment growth. Only 37% of students were successful in answering this question. Teachers and students are reminded that graphical analysis of business and financial situations is a requirement of the study design. [ VCAA 2006] 6 A sum of $5000 is invested for 2 years at the rate of 4.75% p.a., compounded quarterly. The value of the interest at the end of the term, to the nearest dollar, is: A $495 B $5468 C $4532 D $936 E $391 7 A current household income is $ p.a. and grows at the rate of 6% p.a. With this rate being constant, the number of years required for the household income to reach $ is: A 7 B 8 C 9 D 10 E 11 Questions 8, 9 and 10 relate to the following. The table below shows the transactions in Anastasia s passbook for August. Date Transaction Deposits Withdrawals Balance 3 August 2009 Salary $ $ August 2009 $ August 2009 Cheque 9652 $ August 2009 Cheque 9654 $ Financial arithmetic 445
2 8 In the bank statement above, the minimum balance for the month is: A $ B $ C $ D $ E $ The interest earned on the minimum monthly balance if the bank pays 5.5% p.a. simple interest monthly is: A $9.55 B $6.58 C $2.73 D $1.02 E $ The total debits for the month of August are: A $1490 B $ C $ D $ E $ Ben has a store credit card with an outstanding balance of $850. If the interest rate is 24%, calculate the amount Ben will be charged if the balance is not paid by the due date. A $646 B $204 C $1054 D $826 E $25 12 An electrical store offers its customers an 8% discount if goods are fully paid for in cash on the camcorder with a marked price of $799 if she pays for it in cash? A $63.92 B $ C $ D $ E $ A hire-purchase agreement on a loan of $3000 requires 24 monthly payments. The effective annual rate interest is 17%. The interest paid, in dollars, is close to: A $289 B $361 C $482 D $679 E $ A new cooktop worth $935 is bought under hire-purchase with a deposit of $100 and 18 monthly instalments of $50. The flat rate of interest is: A 8.94% B 7.69% C 6.34% D 5.19% E 4.88% 15 Brad investigated the cost of buying a $720 washing machine under a hire-purchase agreement. A deposit of $180 is required and the balance will be paid in 24 equal monthly repayments. A flat interest rate of 12% per annum applies to the balance. Brad correctly calculated the monthly repayment to be: A $22.50 B $25.20 C $26.10 D $27.90 E $29.70 EXAM TIP This question was based on a 2-year hire-purchase agreement. With a success rate of 36%, this question was not well done. However, another 30% of students started correctly, but only took into account 1 year s interest, not 2. [ VCAA 2007] 16 A laser printer is purchased for $790. It has an expected lifetime of 6 years and zero residual (scrap) value. The amount of depreciation to be allowed per year, in dollars, assuming a straightline depreciation, is: A $790 B $212 C $ D $98.37 E $ Equipment worth $ is bought for a snowboard workshop. It depreciates at 12.5% p.a. constant depreciation. With zero scrap value, the book value of the equipment after 5 years is expected to be: A $ B $6975 C $8114 D $5678 E $ A new computer costs $3490. If depreciation is calculated at 33% p.a. (reducing balance), then the computer s book value at the end of 5 years will be close to: A $471 B $509 C $432 D $567 E $ A new kitchen in a restaurant cost $ Its value is depreciated over time using the reducing balance method. The value of the kitchen in dollars 446 Maths Quest 11 Standard General Mathematics for the TI-Nspire
3 at the end of each year for 10 years is shown in the graph below. Value (dollars) Year Which one of the following statements is true? A The kitchen depreciates by $4000 annually. B At the end of five years, the kitchen s value is less than $ C The reducing balance depreciation rate is less than 5% per annum. D The annual depreciation rate increases over time. E The amount of depreciation each year decreases over time. [ VCAA 2007] 20 A piece of equipment, originally worth $49 600, diminishes at a rate of 14.5% p.a. The owner decides to replace the equipment when its book value falls below $5000. The time passing before the next replacement is required is close to: A 10 years B 12 years C 14 years D 15 years E 16 years 21 The unit cost depreciation for a machine bought for $ with scrap value of $750 and designed for hours of operation is close to: A 6 c B 12 c C 22 c D 35 c E 49 c 22 A company car purchased for $ and travelled km in the first year and km in the second year. In its third year, its book value will be: A $ B $ C $7644 D $9670 E $ SHORT ANSWER 1 An investment in BT bonds of $ over years earned Rebecca the same amount as $ invested at 7.5% in a term deposit for 5 years. Calculate the interest rate offered by BT bonds. 2 Find: a the simple interest on $2900 for 8 months at 5.85% p.a. b the annual rate of simple interest so that $1600 will amount to $2000 after 3 years c the number of years over which $5000 will amount to $6000 at 6.5% simple interest d the sum invested at 8% p.a. simple interest if it amounted to $4000 after 4 years. 3 Karen borrowed $1100 from a credit union at 8.55% per annum. She repaid the loan in a lump sum when the principal and interest amounted to $1400. How long, to the nearest year, did she keep the money? 4 Find each of the following and compare with the results from question 2. a The amount owing on $2900 for 8 months at 5.85% p.a. compounded daily. b The annual rate of compound interest so that $1600 will amount to $2000 after 3 years. c The number of years over which $5000 will amount to $6000 at 6.5% p.a. compounded quarterly. d The sum invested at 8% p.a. compound interest if it amounted to $4000 after 4 years. 5 It is estimated that inflation will average 2% per annum over the next 8 years. If a new machine costs $ now, calculate the cost of a similar new machine in 8 years time, adjusted for inflation. Assume no other cost change. Write your answer correct to the nearest dollar. [ VCAA 2006] 6 The company prepares for this expenditure by establishing three different investments. a $7 000 is invested at a simple interest rate of 6.25% per annum for 8 years. Determine the total value of this investment at the end of 8 years. EXAM TIP showing the calculation but finding only the interest earned $3500. b $ is invested at an interest rate of 6% per annum compounding quarterly for 8 years. Determine the total value of this investment at the end of 8 years. Write your answer correct to the nearest dollar. [ VCAA 2006] Financial arithmetic 447
4 7 For the given statement below, calculate: a the total credits b the total debits c the balance after each transaction d the final balance for the period of the statement. Date Transaction detail Debit Credit Balance 2 April 2009 Cheque 2694 $ $ CR 5 April 2009 Salary $ April 2009 $ April 2009 Salary $ April 2009 ABWDL Jam $ Factory 29 April 2009 Cheque 2695 $ For the given statement in question 7, calculate the interest the account will earn in April if the bank pays 5 1 % p.a. simple interest 3 a on the minimum monthly balance b on the minimum daily balance. 10 Study the credit card statement below. 9 The minimum monthly repayment on a credit card is (a) 1.5% of the balance rounded down to the nearest dollar or (b) $25, whichever is greater. Calculate the minimum monthly repayment on a balance of: a $3500 b $ c $ d $150 e $ Date Credit Debit Balance (amount owing) 1 January 2010 $ DR 8 January 2010 $500 Repayment 15 January 2010 $399 Purchase 1 February 2010??? Interest 8 February 2010??? Repayment??? Interest a If the interest rate is 16.5% p.a., calculate the daily rate of interest, correct to 4 decimal places (take 1 year 365 days). b Calculate the interest added to the account on 1 February. c On 8 February the minimum repayment of 5% is made. Calculate the amount of this repayment. d Calculate the outstanding balance on the year). 11 A new refrigerator is bought under a hire-purchase agreement for $3300 with $300 deposit and 24 monthly instalments of $153 each to be made. Calculate: a the amount of interest charged b the flat rate of interest c the effective rate of interest. 448 Maths Quest 11 Standard General Mathematics for the TI-Nspire
5 12 Alvin borrows $2000 from a bank at 14.6% p.a. calculated on a reducing monthly balance with monthly repayments of $40. a Calculate the amount still owed after the fourth repayment. b Calculate the amount of interest paid in 4 repayments. c Express the interest paid over the period of 4 months as a percentage of the total payments. 13 a scrap value of $1200 after 10 years. a Assuming straight-line depreciation, find the yearly depreciation change. b Find the amount by which depreciation at the end of the second year exceeds the depreciation at the end of the sixth year. 14 What was the original cost of an item that has a book value of $6344 after 7 years if the depreciation rate is 18% p.a.? 15 A photocopier is purchased for $ and depreciates at an average rate of cents per copy. a Calculate the book value of the photocopier after copies were made. b After how many copies will the photocopier be written off (that is, have a zero scrap value)? EXTENDED RESPONSE 1 The passbook page below shows all the transactions for the month of February. Date Credit Debit Balance 2 Feb. $ $ Feb. $ Feb. $ Feb. $ Feb. $ a Calculate the balance after each transaction and enter the results in the table. b Calculate the total credits for the month of February. c Calculate the total debits for the month of February. d Find the interest that will be earned in February if the bank pays 5.25% p.a. simple interest on the minimum monthly balance. 2 1 to find the interest that will be earned in February if the bank pays 5.25% p.a. simple interest on the minimum daily balance. 3 An up to 55 days interest free period credit card was used for purchases which after the 30-day interval totalled $1825. Find the minimum amount payable, if the current credit limit on this card is $2000 and the bank requires the largest of $25 or 1.5% of the outstanding balance. Any excess above the card limit must also be included in the payment. 4 Chris bought an outboard motor for $5600 under hire purchase with $1000 deposit and 24 monthly instalments of $220. Calculate: a the amount of interest charged b the flat rate of interest c the effective rate of interest. 5 A personal loan of $4770, borrowed at 10% per annum reducing monthly balance, is to be repaid in monthly instalments of $80. Calculate the amount still owing at the end of the second month. 6 depreciation, find the yearly depreciation of the machinery. 7 A factory writes off 3.5% per annum for its building with the current book value of $ If the adopted method to calculate depreciation is straight line, find the book value of the factory in 12 years time. Financial arithmetic 449
6 8 A road works company purchased machinery for $ It depreciates at 10% per annum reducing balance. Calculate: a the book value of the machinery after 4 years b the total depreciation over the first 6 years c the number of years (to the nearest month) until the machinery has a value below $ d the number of years (to the nearest month) until the machinery reaches its scrap value of $ e a depreciation schedule for the first 5 years. 9 A company writes off 25% p.a. for reduced value depreciation of its machinery with a current book value of $ Determine the purchase cost of the machinery 5 years ago. 10 A silver mining company purchased a new machine for $ Calculate its book value after 5 years if it is 11 A machine cost $ when new, and had an estimated trade-in value of $4000 and a useful life of operating hours. Calculate: a the unit cost depreciation b the machine s book value after it has been operating for 7200 hours. 12 estimates that she needs to save $1400 over the next 12 months. She has already saved $1095 and is considering two options. Option A a Buying government bonds paying 9.85% p.a. i ii Option B b Opening a Super-Saver investment account that pays 9.55% p.a. compounded daily. i ii c Therefore, she saved some extra money and combined this with the total calculated in part b and reinvested for another 12 months at the same rate. How much does she need to add, to ensure that she has $1400 at the end of 12 months? 13 a a new mower for $4850. It depreciates at the rate of 18% of its value at the start of each year. i Find the value of the equipment at the end of 6 years, correct to the nearest dollar. ii Approximately how much time will pass before the equipment will be worth less than $500? b Ken decided to buy a new car, which cost $ He traded in his old car and small trailer for $2600 as a deposit. The balance was to be paid on hire-purchase over 4 years, in weekly payments of $115. i How much will Ken pay over the period of 4 years? ii How much interest will Ken pay over that period? iii Calculate the flat rate of interest charged. iv Calculate the effective rate of interest. 14 Christopher wishes to purchase a notebook. Its retail value is $3599. Christopher s first option for financing the purchase is using a hire-purchase plan. The terms offered by the department store are 10% deposit with fortnightly instalments over 2 years at an interest rate of 9.2% p.a. a How much will Christopher need to withdraw from his savings account to pay the deposit? b Calculate the fortnightly repayments and total interest charge. 450 Maths Quest 11 Standard General Mathematics for the TI-Nspire
7 c What is the total cost of the notebook? A personal loan is advertised at 13.5% p.a. For Christopher to compare the interest rate, he needs to convert the hire-purchase flat rate of interest to the effective interest rate. d Calculate the effective interest rate and comment on how it compares with the personal loan rate. Another option is for Christopher to save up until he has the cash to pay for the notebook. He can place the balance of his savings account, $ , into a term deposit offering 6.3% p.a. simple interest for a 2-year term. e Calculate the total value of his investment at the end of 2 years. f If he uses the term deposit investment towards the purchase of the notebook, what amount still needs to be paid? g What extra fortnightly savings will be needed over the next 2 years to make up the balance of $3599? h What is the main attraction of the hire-purchase option over the other two options? 15 Khan wants to buy some office furniture that is valued at $7000. a i A store requires 25% deposit. Calculate the deposit. The balance is to be paid in 24 equal monthly ii Determine the amount of each instalment. Write your answer in dollars and cents. b Another store offers the same $7000 office furniture for $500 deposit and 36 monthly instalments of $220. i Determine the total amount paid for the furniture at this store. ii Calculate the annual flat rate of interest charged by this store. Write your answer as a percentage correct to 1 decimal place. A third store has the office furniture marked at $7000 but will give 15% discount if payment is made in cash at the time of sale. c Calculate the cash price paid for the furniture after the discount is applied. Khan decides to extend his home office and borrows $ for building costs. Interest is charged on the loan at a rate of 9% per annum compounding monthly. Assume Khan will pay only the interest on the loan at the end of each month. d Calculate the amount of interest he will pay each month. Khan paid $900 for a fax machine. This price includes 10% GST (goods and services tax). e Determine the price of the fax machine before GST was added. Write your answer correct to the nearest cent. f Khan will depreciate his $900 fax machine for taxation purposes. He considers two methods of depreciation. EXAM TIP This question was quite poorly answered and the deposit was often not allowed for. One mark was available for clearly identifying the interest of $1420 that was then to be used in the simple interest formula. EXAM TIP a period of time for this loan. A loan where the interest only is paid each month is not a reducing balance question as the balance does not decrease or increase. It becomes a simple interest calculation for one period (1 month in this case). EXAM TIP Reverse GST questions such as this continue to be a problem for many students. Answers of $ were not accepted as accuracy correct to the nearest cent was required. Some students simply reduced $900 by 10% of $90 to get $810. Flat-rate depreciation i Calculate the annual depreciation in dollars. Financial arithmetic 451
8 Unit cost depreciation Suppose Khan sends 250 faxes a year. The $900 fax machine is depreciated by 46 cents for each fax it sends. ii Determine the value of the fax machine after 5 years. The books in Khan s office are valued at $ g Calculate the value of these books after 5 years if they are depreciated by 12% per annum using the reducing balance method. Write your answer correct to the nearest dollar. Khan believes his books should be valued at $4000 after 5 years. h Determine the annual reducing balance depreciation rate that will produce this value. Write your answers as a percentage correct to 1 decimal place. [ VCAA 2007] ebookplus Digital doc Test Yourself 452 Maths Quest 11 Standard General Mathematics for the TI-Nspire
Year 10 General Maths Unit 2
Year 10 General Mathematics Unit 2 - Financial Arithmetic II Topic 2 Linear Growth and Decay In this area of study students cover mental, by- hand and technology assisted computation with rational numbers,
More informationYarra Valley Grammar Unit 3 Further Mathematics. Module 4: Business related mathematics
Yarra Valley Grammar Unit 3 Further Mathematics Module 4: Business related mathematics Name FMT Business Related Mathematics Page 1 FMT Business Related Mathematics Page 2 Further Mathematics: Study design
More informationSAMPLE. MODULE 4 Applications of financial mathematics
C H A P T E R 21 MODULE 4 Applications of financial mathematics How do we calculate income tax? What do we mean by capital gains tax, stamp duty, GST? How do we calculate the interest earned on our bank
More informationHSC Mathematics DUX. Sequences and Series Term 1 Week 4. Name. Class day and time. Teacher name...
DUX Phone: (02) 8007 6824 Email: info@dc.edu.au Web: dc.edu.au 2018 HIGHER SCHOOL CERTIFICATE COURSE MATERIALS HSC Mathematics Sequences and Series Term 1 Week 4 Name. Class day and time Teacher name...
More informationFurther Mathematics 2016 Core: RECURSION AND FINANCIAL MODELLING Chapter 6 Interest and depreciation
Further Mathematics 2016 Core: RECURSION AND FINANCIAL MODELLING Chapter 6 Interest and depreciation Key knowledge the use of first- order linear recurrence relations to model flat rate and unit cost and
More informationYear 10 GENERAL MATHEMATICS
Year 10 GENERAL MATHEMATICS UNIT 2, TOPIC 3 - Part 1 Percentages and Ratios A lot of financial transaction use percentages and/or ratios to calculate the amount owed. When you borrow money for a certain
More informationSAMPLE. Financial arithmetic
C H A P T E R 6 Financial arithmetic How do we determine the new price when discounts or increases are applied? How do we determine the percentage discount or increase applied, given the old and new prices?
More information3 Financial arithmetic 3.1 Kick off with CAS 3.2 Percentage change 3.3 Financial applications of ratios and percentages 3.4 Simple interest applications 3.5 Compound interest applications 3.6 Purchasing
More informationUNCORRECTED PAGE PROOFS
3 Financial arithmetic 3.1 Kick off with CAS 3.2 Percentage change 3.3 Financial applications of ratios and percentages 3.4 Simple interest applications 3.5 Compound interest applications 3.6 Purchasing
More informationFurther Mathematics 2016 Core: RECURSION AND FINANCIAL MODELLING Chapter 7 Loans, investments and asset values
Further Mathematics 2016 Core: RECURSION AND FINANCIAL MODELLING Chapter 7 Loans, investments and asset values Key knowledge (Chapter 7) Amortisation of a reducing balance loan or annuity and amortisation
More informationGRADE 9 FINANCIAL MATHS
GRADE 9 FINANCIAL MATHS INVESTMENTS AND INTEREST When you borrow money you have to pay interest. This means that you have to pay back more than you have borrowed. One way of making money is through investments.
More informationChapter 15B and 15C - Annuities formula
Chapter 15B and 15C - Annuities formula Finding the amount owing at any time during the term of the loan. A = PR n Q Rn 1 or TVM function on the Graphics Calculator Finding the repayment amount, Q Q =
More informationFinancial Mathematics Written by : T Remias
Financial Mathematics Written by : T Remias Page 1 CONTENTS PAGE CONTENTS PAGE Financial Maths (def)..... 3 Types of growth / interest.... 3 Appreciation..... 7 Depreciation..... 7 Nominal interest rate.....
More informationLeaning Outcome 7 Commercial Mathematics
Maths in Context Leaning Outcome 7 Commercial Mathematics Exercise Book (1-11) Page 1 of 7 Learning Outcome 7 Exercise 1 Complete the table below. Weekly earnings ($) 1. 500 Fortnightly earnings ($) Yearly
More information7.7 Technology: Amortization Tables and Spreadsheets
7.7 Technology: Amortization Tables and Spreadsheets Generally, people must borrow money when they purchase a car, house, or condominium, so they arrange a loan or mortgage. Loans and mortgages are agreements
More informationFINANCE, GROWTH & DECAY (LIVE) 08 APRIL 2015 Section A: Summary Notes and Examples
FINANCE, GROWTH & DECAY (LIVE) 08 APRIL 2015 Section A: Summary Notes and Examples There are two types of formula dealt with in this section: Future Value Annuity Formula where: equal and regular payment
More informationThe three formulas we use most commonly involving compounding interest n times a year are
Section 6.6 and 6.7 with finance review questions are included in this document for your convenience for studying for quizzes and exams for Finance Calculations for Math 11. Section 6.6 focuses on identifying
More informationPersonal Financial Literacy
Personal Financial Literacy Unit Overview Many Americans both teenagers and adults do not make responsible financial decisions. Learning to be responsible with money means looking at what you earn compared
More informationDepreciation. Straight-line depreciation
ESSENTIAL MATHEMATICS 4 WEEK 11 NOTES TERM 4 Depreciation As mentioned earlier, items which represent scarce resources such as land, collectables, paintings and antiques normally appreciate in value over
More informationYear 10 Mathematics Semester 2 Financial Maths Chapter 15
Year 10 Mathematics Semester 2 Financial Maths Chapter 15 Why learn this? Everyone requires food, housing, clothing and transport, and a fulfilling social life. Money allows us to purchase the things we
More informationPaper Reference(s) 6002/01 London Examinations GCE. Accounting (Modular Syllabus) Advanced Subsidiary/Advanced Level
Paper Reference(s) 6002/01 London Examinations GCE Accounting (Modular Syllabus) Advanced Subsidiary/Advanced Level Unit 2 Corporate and Management Accounting Thursday 16 June 2011 Morning Source booklet
More informationUNCORRECTED PAGE PROOFS
NUMBER AND ALGEBRA TOPIC 15 Financial mathematics 15.1 Overview Numerous videos and interactivities are embedded just where you need them, at the point of learning, in your learnon title at www.jacplus.com.au.
More informationUNCORRECTED PAGE PROOFS
TOPIc 15 Financial mathematics 15.1 Overview Why learn this? Everyone requires food, housing, clothing and transport, and a fulfi lling social life. Money allows us to purchase the things we need and desire.
More informationWTS TUTORING WTS FINANCIAL MATHS. : GRADE : 10 TO 12 COMPILED BY : MR KWV BABE SWEMATHS/MASTERMATHS
WTS TUTORING 1 WTS TUTORING WTS FINANCIAL MATHS GRADE : 10 TO 12 COMPILED BY : MR KWV BABE SWEMATHS/MASTERMATHS DJ MATHS/ DR MATHS/ PROF KHANGELANI SIBIYA CELL NO. : 0826727928 EMAIL : kwvsibiya@gmail.com
More informationFinancial mathematics Recall 1
Worksheet Worksheet R. Worksheet R. R.3 Worksheet Worksheet R.4 R.5 Financial mathematics Recall Prepare for this chapter by attempting the following questions. If you have difficulty with a question,
More informationIn this session we will focus on summarising what you need to know about:
SESSION 11: FINANCIAL MATHS Key Concepts In this session we will focus on summarising what you need to know about: Different compounding periods Nominal and annual effective rates Depreciation Linear Depreciation
More informationMARK SCHEME for the May/June 2010 question paper for the guidance of teachers 0452 ACCOUNTING. 0452/11 Paper 11, maximum raw mark 120
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the May/June 2010 question paper for the guidance of teachers 0452 ACCOUNTING
More informationMath 1324 Finite Mathematics Chapter 4 Finance
Math 1324 Finite Mathematics Chapter 4 Finance Simple Interest: Situation where interest is calculated on the original principal only. A = P(1 + rt) where A is I = Prt Ex: A bank pays simple interest at
More informationdepreciation Syllabus topic F1.1 Interest and depreciation
9 Interest and depreciation Syllabus topic F1.1 Interest and depreciation This topic will develop your skills in calculating and graphing simple interest. It presents a variety of applications involving
More informationFANLING LUTHERAN SECONDARY SCHOOL
FANLING LUTHERAN SECONDARY SCHOOL 2012 2013 2 nd Term Examination S.5 BUSINESS, ACCOUNTING AND FINANCIAL STUDIES Accounting Module Date : 20th June, 2013 Time allowed: 8:30 am - 11:00 am (2 hour 30 minutes)
More informationThe Monthly Payment. ( ) ( ) n. P r M = r 12. k r. 12C, which must be rounded up to the next integer.
MATH 116 Amortization One of the most useful arithmetic formulas in mathematics is the monthly payment for an amortized loan. Here are some standard questions that apply whenever you borrow money to buy
More information7-4. Compound Interest. Vocabulary. Interest Compounded Annually. Lesson. Mental Math
Lesson 7-4 Compound Interest BIG IDEA If money grows at a constant interest rate r in a single time period, then after n time periods the value of the original investment has been multiplied by (1 + r)
More informationSOLUTIONS TO END-OF-CHAPTER QUESTIONS CHAPTER 3
SOLUTIONS TO END-OF-CHAPTER QUESTIONS CHAPTER 3 DEVELOP YOUR UNDERSTANDING Question 3.1 1. Abi s capital account balance at 1 September 2017 Remember that assets liabilities = capital (equity) Assets Inventory
More informationCHAPTER 2. Financial Mathematics
CHAPTER 2 Financial Mathematics LEARNING OBJECTIVES By the end of this chapter, you should be able to explain the concept of simple interest; use the simple interest formula to calculate interest, interest
More informationUNCORRECTED PAGE PROOFS
TOPIC 3 Financial arithmetic 3.1 Overview 3.1.1 Introduction Bank interest today is very different to what it originally was thousands of years ago. The basic premise, however, remains the same. The early
More informationLesson 1: How Your Money Changes Appreciation & Depreciation
: How Your Money Changes Appreciation & Depreciation Learning Target I can solve Appreciation and Depreciation word problems I can calculate simple and compound interests In your own words write answer
More informationFinancial Maths: Interest
Financial Maths: Interest Basic increase and decrease: Let us assume that you start with R100. You increase it by 10%, and then decrease it by 10%. How much money do you have at the end? Increase by 10%
More informationMathematics Department A BLOCK EXAMINATION CORE MATHEMATICS PAPER 1 SEPTEMBER Time: 3 hours Marks: 150
Mathematics Department A BLOCK EXAMINATION CORE MATHEMATICS PAPER 1 SEPTEMBER 2014 Examiner: Mr S B Coxon Moderator: Mr P Stevens Time: 3 hours Marks: 150 PLEASE READ THE INSTRUCTIONS CAREFULLY 1. This
More informationAdult Basic Education Mathematics Mathematics 3109A Income and Debt Owning and Operating a Vehicle Curriculum Guide Prerequisite: Credit Value
Adult Basic Education Mathematics Income and Debt Owning and Operating a Vehicle Prerequisite: Mathematics 2105A, 2105B, 2105C Credit Value: 1 Mathematics Courses [General College Profile] Mathematics
More informationGrowth and decay. VCEcoverage Area of study. Units 3 & 4 Business related mathematics
Growth and decay VCEcoverage Area of study Units 3 & Business related mathematics In this cha chapter A Growth and decay functions B Compound interest formula C Finding time in compound interest using
More informationMATH 1012 Section 6.6 Solving Application Problems with Percent Bland
MATH 1012 Section 6.6 Solving Application Problems with Percent Bland Office Max sells a flat panel computer monitor for $299. If the sales tax rate is 5%, how much tax is paid? What is the total cost
More information8Syllabus topic F3 Depreciation and loans
Depreciation and loans 8Syllabus topic F3 Depreciation and loans This topic will develop your understanding of reducing balance loans and that an asset may depreciate over time rather than appreciate.
More informationMARK SCHEME for the May/June 2010 question paper for the guidance of teachers 0452 ACCOUNTING. 0452/11 Paper 11, maximum raw mark 120
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the May/June 2010 question paper for the guidance of teachers 0452 ACCOUNTING
More information21.1 Arithmetic Growth and Simple Interest
21.1 Arithmetic Growth and Simple Interest When you open a savings account, your primary concerns are the safety and growth of your savings. Suppose you deposit $100 in an account that pays interest at
More informationModule 1 caa-global.org
Certified Actuarial Analyst Resource Guide Module 1 2017 1 caa-global.org Contents Welcome to Module 1 3 The Certified Actuarial Analyst qualification 4 The syllabus for the Module 1 exam 5 Assessment
More informationInterest Rates. Countrywide Building Society. Saving Data Sheet. Gross (% per annum)
Interest Rates Gross (% per annum) Countrywide Building Society This is the rate of simple interest earned in a year (before deducting tax). Dividing by 12 gives a good estimate of the monthly rate of
More informationIE 302 Engineering g Economy. Dr. M. Jeya Chandra Class #1
IE 302 Engineering g Economy Dr. M. Jeya Chandra Class #1 1 Applications of Engineering Economics: Selecting one or more projects for investment from a given set, using one or more criteria, based on the
More informationPersonal Financial Literacy
Personal Financial Literacy 7 Unit Overview Being financially literate means taking responsibility for learning how to calculate income taxes on wages and how to create a budget to plan your spending and
More informationSection 6.5 Applications Involving Percents
Section 6.5 Applications Involving Percents The focus of this section is to show how to set up a proportion to solve word problems involving real-life applications of percent. If the student needs a review
More informationAnnual Qualification Review
LCCI International Qualifications Level 2 Certificate in Business Calculations Annual Qualification Review 2011 For further information contact us: Tel. +44 (0) 8707 202909 Email. enquiries@ediplc.com
More informationMy Notes CONNECT TO HISTORY
SUGGESTED LEARNING STRATEGIES: Shared Reading, Summarize/Paraphrase/Retell, Create Representations, Look for a Pattern, Quickwrite, Note Taking Suppose your neighbor, Margaret Anderson, has just won the
More information1.1. Simple Interest. INVESTIGATE the Math
1.1 Simple Interest YOU WILL NEED calculator graph paper straightedge EXPLORE An amount of money was invested. Interpret the graph below to determine a) how much money was invested, b) the value of the
More informationModule Contact: Will Carpenter, CMP Copyright of the University of East Anglia Version 1
UNIVERSITY OF EAST ANGLIA School of Computing Sciences Main Series UG Examination 2017-18 FINANCIAL MATHEMATICS CMP-5009A Time allowed: 3 hours Answer ALL questions. Actuarial Tables are provided on desk.
More informationPersonal Financial Literacy
Personal Financial Literacy 7 Unit Overview Being financially literate means taking responsibility for learning how to manage your money. In this unit, you will learn about banking services that can help
More information4 Percentages Chapter notes
4 Percentages Chapter notes GCSE Specification concepts and skills Find a percentage of a quantity (N o): 4. Use percentages to solve problems (N m): 4., 4.2, 4., 4.4 Use percentages in real-life situations:
More informationInterest: The money earned from an investment you have or the cost of borrowing money from a lender.
8.1 Simple Interest Interest: The money earned from an investment you have or the cost of borrowing money from a lender. Simple Interest: "I" Interest earned or paid that is calculated based only on the
More informationAccounting And Finance For Bankers - JAIIB
Timing: 3 Hours Question : 100 1. When simple rate of interest is calculated, the interest rate % age is expresses as: a. Rate/100 b. Rate*100 c. 100/Rate d. 1+rate/100 2. Identify a personal account out
More informationCopyright 2015 by the UBC Real Estate Division
DISCLAIMER: This publication is intended for EDUCATIONAL purposes only. The information contained herein is subject to change with no notice, and while a great deal of care has been taken to provide accurate
More information3.1 Mathematic of Finance: Simple Interest
3.1 Mathematic of Finance: Simple Interest Introduction Part I This chapter deals with Simple Interest, and teaches students how to calculate simple interest on investments and loans. The Simple Interest
More informationCHAPTER 4 SIMPLE AND COMPOUND INTEREST INCLUDING ANNUITY APPLICATIONS. Copyright -The Institute of Chartered Accountants of India
CHAPTER 4 SIMPLE AND COMPOUND INTEREST INCLUDING ANNUITY APPLICATIONS SIMPLE AND COMPOUND INTEREST INCLUDING ANNUITY- APPLICATIONS LEARNING OBJECTIVES After studying this chapter students will be able
More informationFAC2601 EXAM PACK EXAM REVISION PACK 2015
FAC2601 EXAM PACK EXAM EVISION PACK 2015 Written by Class of 2015 Together We Pass www.togetherwepass.co.za info@togetherwepass.co.za headtutor@togetherwepass.co.za Tel: 021 958 2567 Welcome If you are
More informationICAN MID DIET LIVE CLASS FOR MAY DIET 2015 FINANCIAL ACCOUNTING Introduction to financial accounting Recording non-current assets and depreciation
ICAN MID DIET LIVE CLASS FOR MAY DIET 2015 FINANCIAL ACCOUNTING Introduction to financial accounting Recording non-current assets and depreciation Compiling financial statement Compiling financial statement
More informationBACKGROUND KNOWLEDGE for Teachers and Students
Pathway: Agribusiness Lesson: ABR B4 1: The Time Value of Money Common Core State Standards for Mathematics: 9-12.F-LE.1, 3 Domain: Linear, Quadratic, and Exponential Models F-LE Cluster: Construct and
More information2018 Senior External Examination. Part A: 60 minutes Part B: 60 minutes Part C: 60 minutes
2018 Senior External Examination Accounting Paper Two Question book Wednesday 7 November 2018 1:15 pm to 4:25 pm Time allowed Perusal time: 10 minutes Working time: 3 hours Examination materials provided
More informationFurther Maths Practice SAC Core: Recursion & Financial Modelling
Question 1 Further Maths 2016 - Practice SAC Core: Recursion & Financial Modelling Jeremy is planning to save money for his Schoolies activity at the end of the year. He has an account with $1500 in it
More informationPage Points Score Total: 100
Math 1130 Autumn 2018 Sample Midterm 2c 2/28/19 Name (Print): Username.#: Lecturer: Rec. Instructor: Rec. Time: This exam contains 8 pages (including this cover page) and 6 problems. Check to see if any
More informationCoimisiún na Scrúduithe Stáit State Examinations Commission. Leaving Certificate Marking Scheme. Accounting. Higher Level
Coimisiún na Scrúduithe Stáit State Examinations Commission Leaving Certificate 2018 Marking Scheme Accounting Higher Level Note to teachers and students on the use of published marking schemes Marking
More informationPage Points Score Total: 100
Math 1130 Spring 2019 Sample Midterm 3a 4/11/19 Name (Print): Username.#: Lecturer: Rec. Instructor: Rec. Time: This exam contains 9 pages (including this cover page) and 9 problems. Check to see if any
More informationMathematics for Work and Everyday Life, Grade 11
Mathematics for Work and Everyday Life, Grade 11 Workplace Preparation MEL3E This course enables students to broaden their understanding of mathematics as it is applied in the workplace and daily life.
More informationFINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING FORMATION 2 EXAMINATION - APRIL 2013 NOTES: You are required to answer Question 1. You are also required to answer any three out of Questions 2 to 5. (If you provide answers to all
More informationPage Points Score Total: 100
Math 1130 Spring 2019 Sample Midterm 2b 2/28/19 Name (Print): Username.#: Lecturer: Rec. Instructor: Rec. Time: This exam contains 10 pages (including this cover page) and 9 problems. Check to see if any
More informationSavings and investments
Savings and investments 10 FINANCIAL MATHEMATICS As our economy grows and our standard of living improves, Australians are becoming more informed about financial planning and investing their money wisely.
More informationCertificate in Book-keeping and Accounts
Certificate in Book-keeping and Accounts ASE2007 Level 2 Monday 8 April 2013 Time allowed: 3 hours Information There are 5 questions in this question paper. All questions carry equal marks. Instructions
More informationMIDTERM EXAMINATION MGT101- Financial Accounting (Session - 5) Question No: 1 ( Marks: 1 ) - Please choose one According to the double entry system of accounting, an account that obtains benefit is: Debit
More informationMARK SCHEME for the May/June 2007 question paper 0452 ACCOUNTING
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the May/June question paper 0452 ACCOUNTING 0452/02 Paper 2, maximum raw mark
More informationpractice: simple & compound interest/depreciation
practice: simple & compound interest/depreciation [145 marks] Jackson invested 12 000 Australian dollars (AUD) in a bank that offered simple interest at an annual interest rate of r %. The value of Jackson
More informationFinance 197. Simple One-time Interest
Finance 197 Finance We have to work with money every day. While balancing your checkbook or calculating your monthly expenditures on espresso requires only arithmetic, when we start saving, planning for
More informationMath116Chap10MathOfMoneyPart2Done.notebook March 01, 2012
Chapter 10: The Mathematics of Money PART 2 Percent Increases and Decreases If a shirt is marked down 20% and it now costs $32, how much was it originally? Simple Interest If you invest a principle of
More informationBefore How can lines on a graph show the effect of interest rates on savings accounts?
Compound Interest LAUNCH (7 MIN) Before How can lines on a graph show the effect of interest rates on savings accounts? During How can you tell what the graph of simple interest looks like? After What
More informationFinancial Mathematics
3 Lesson Financial Mathematics Simple Interest As you learnt in grade 10, simple interest is calculated as a constant percentage of the money borrowed over a specific time period, for the complete period.
More informationTHE EMPLOYER S GUIDE TO PAY AS YOU EARN
THE EMPLOYER S GUIDE TO PAY AS YOU EARN Issued by, Taxpayers Services and Education Department July 2017 EMPLOYER S GUIDE TO P.A.Y.E CONTENTS PART I...1 1.0 PRELIMINARY INTERPRETATION...1 1.1 PURPOSE
More informationSHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
Math 131-03 Practice Questions for Exam# 2 SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 1) What is the effective rate that corresponds to a nominal
More informationINSTRUCTIONS TO CANDIDATES:
HERSCHEL GIRLS HIGH SCHOOL ADVANCED PROGRAMME MATHEMATICS- GRADE 12 Paper 2-Financial Maths DATE: September 2016 MARKS: 100 TIME: 1 HOUR INSTRUCTIONS TO CANDIDATES: 1. This paper consists of 5 questions
More informationWorksheets for GCSE Mathematics. Percentages. Mr Black's Maths Resources for Teachers GCSE 1-9. Number
Worksheets for GCSE Mathematics Percentages Mr Black's Maths Resources for Teachers GCSE 1-9 Number Percentage Worksheets Contents Differentiated Independent Learning Worksheets Writing Percentages Page
More informationSOCIETY OF ACTUARIES FINANCIAL MATHEMATICS EXAM FM SAMPLE QUESTIONS
SOCIETY OF ACTUARIES EXAM FM FINANCIAL MATHEMATICS EXAM FM SAMPLE QUESTIONS This set of sample questions includes those published on the interest theory topic for use with previous versions of this examination.
More informationMath 134 Tutorial 7, 2011: Financial Maths
Math 134 Tutorial 7, 2011: Financial Maths For each question, identify which of the formulae a to g applies. what you are asked to find, and what information you have been given. Final answers can be worked
More informationPractice Test Questions. Exam FM: Financial Mathematics Society of Actuaries. Created By: Digital Actuarial Resources
Practice Test Questions Exam FM: Financial Mathematics Society of Actuaries Created By: (Sample Only Purchase the Full Version) Introduction: This guide from (DAR) contains sample test problems for Exam
More informationDepreciation Chapter # 10 JAHANGEER KHAN
1 WHAT THE EXAMINER USUALLY ASK? Computation of cost of fixed asset. Computation of depreciation expense under: Straight Line Method. Diminishing Balance Method. Units Production Method. Working Hours
More informationComparing Quantities
COMPARING QUANTITIES 7 Comparing Quantities CHAPTER 8 8. Recalling Ratios and Percentages We know, ratio means comparing two quantities. A basket has two types of fruits, say, 0 apples and 5 oranges. Then,
More informationESSENTIAL QUESTION How do you calculate the cost of repaying a loan?
? LESSON 16.1 Repaying Loans ESSENTIAL QUESTION How do you calculate the cost of repaying a loan? Personal financial literacy 8.12.A Solve real-world problems comparing how interest rate and loan length
More informationTotal 100
MATH 111 Final Exam Winter 2015 Name Student ID # Section HONOR STATEMENT I affirm that my work upholds the highest standards of honesty and academic integrity at the University of Washington, and that
More informationDepartment of Mathematics
Department of Mathematics TIME: 3 Hours Setter: AM DATE: 27 July 2015 GRADE 12 PRELIM EXAMINATION MATHEMATICS: PAPER I Total marks: 150 Moderator: JH Name of student: PLEASE READ THE FOLLOWING INSTRUCTIONS
More informationPlanning 10/CLE - Financial Terms
Planning 10/CLE - Financial Terms These are the concepts you should be learning as opposed to exact definitions to memorize. To help with you learn the terms, students will teach some of them to the class
More informationANZ PERSONAL BANKING
ANZ PERSONAL BANKING ACCOUNT FEES AND CHARGES 06.02.2018 Thank you for banking with ANZ. We are proud of our products, and believe they are amongst the best in the industry. Many have received industry
More informationSOLUTION. JRE300H1F: Fundamentals of Accounting and Finance. MIDTERM EXAMINATION (30% of Final Grade): Fall Time Allowed: 1 hour and 50 minutes
JRE300H1F: Fundamentals of Accounting and Finance MIDTERM EXAMINATION (30% of Final Grade): Fall 2017 Time Allowed: 1 hour and 50 minutes SOLUTION LAST NAME: FIRST NAME: STUDENT NUMBER: Instructions: Write
More information1. Commercial Arithmetic 2 1. The table below shows the rate at which income tax is charged for all taxable income.
1. Commercial Arithmetic 2 1. The table below shows the rate at which income tax is charged for all taxable income. INCOME On the first shs.116 160 10% On the next shs.109 440 15% On the next shs.109 440
More informationFinancial Literacy in Mathematics
Lesson 1: Earning Money Math Learning Goals Students will: make connections between various types of payment for work and their graphical representations represent weekly pay, using equations and graphs
More informationLondon Examinations GCE Accounting (Modular Syllabus) Advanced Subsidiary Unit 1: The Accounting System and Costing
Centre No. Candidate No. Surname Signature Paper Reference(s) 6001/01 London Examinations GCE Accounting (Modular Syllabus) Advanced Subsidiary Unit 1: The Accounting System and Costing Tuesday 8 January
More informationYear 9 Term 1 Homework
Yimin Math Centre Year 9 Term 1 Homework Student Name: Grade: Date: Score: Table of contents 4 Year 9 Term 1 Week 4 Homework 1 4.1 Consumer arithmetic.................................. 1 4.1.1 Salaries
More information