12 General Transition

​12 General Transition

Multiple Choice

The first topic covered is

• Data and Statistics

• Recursion and Financial Modelling

• Matrices

• Networks

​Financial situations including investments, loans and the depreciation of assets are investigated to see how much interest must be paid on a loan, how much interest an investment earns or how much an asset depreciates, under different assumptions (e.g. different interest rates, different lengths of time...etc)

​In this topic

Fill in the Blanks

A recurrence relation has

parts.

Multiple Choice

Which of the following recurrence relation represents simple interest loan?

Multiple Choice

Which of the following represents linear decay?

Draw

Circle the items that appreciate in value

Multiple Choice

A $4000 printer depreciates by 4 cents per paper printed. This is an example of

• Flat-rate depreciation

• Unit-cost depreciation

Open Ended

Explain the difference between:

* unit-cost depreciation

* flat-rate depreciation

​Complete 7A Questions from the booklet (10 minutes)

​Which method is better for the owner?

​A motorbike worth $9000 is depreciated over a 3 year period using two methods:

​Method 1

​Depreciated by 10% of its purchase price each year.

​Method 2

​Depreciated by $2 for every 10km it travels. The owner travels 3000km per year.

​1. Use recurrence relations to determine which method is better for the owner of the motorbike.

​Complete 7B booklet questions

​

Q1, Q5, Q8, Q9​

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​7C: Using an explicit rule for linear growth and decay

​Which method do I use?

​If a question does not explicitly say to use the 'recurrence relation',
we should always use the rule!

Draw

Draw it

​Complete Example 2 & 5 from Booklet 7C

Multiple Choice

• 1, 3, 5, 7, 9, 11, ...

• 1, 3, 5, 6, 7, 9, 11, ...

• 1, 3, 6, 10, 14, 100, 54

• They are all sequences

Multiple Choice

Multiple Choice

• YES

• NO

Multiple Choice

This situation is an example of

• Simple interest investment

• Simple interest loan

• Unit-cost depreciation

• Flat-rate depreciation

Multiple Choice

• We should use the recurrence relation

• We should use the rule

Multiple Choice

• $0

• $50

• $1200

• $1250

Fill in the Blanks

Include $ sign. No spaces

Fill in the Blanks

Calculate the monthly interest rate. round your answer to 2 decimal places. (don't worry about units)

1 mark questions

• ​Examiners only look at final answer

2 mark questions

• ​no working out, final answer correct - you get 2 marks

• final answer incorrect but shown correct working out and one correct step towards getting final answer- 1 mark might be given