Money Week 2023 - calculations

Money Week 2023

Calculations

Simple and compound interest

Simple interest

•Generally, simple interest paid or received over a certain period is a fixed percentage of the principal amount that was borrowed or lent. 

•For example, say a student obtains a simple-interest loan to pay one year of college tuition, which costs $18,000, and the annual interest rate on the loan is 6%. The student repays the loan over three years. The amount of simple interest paid is:

​$3,240=$18,000×0.06×3​

TASK 1

Peter earned 250 000 HUF during the summer. He decided to spend 50 000 HUF and deposit the rest into a bank account for 3 years. The bank pays simple interest at 1,5% per annum. How much interest will the bank pay altogether during the 3 years?

Multiple Choice

Peter earned 250 000 HUF during the summer. He decided to spend 50 000 HUF and deposit the rest into a bank account for 3 years. The bank pays simple interest at 1,5% per annum. How much interest will the bank pay altogether during the 3 years?

• 3 000 HUF

• 11 200 HUF

• 9 000 HUF

• 9 930 HUF

TASK 2

Peter decided to deposit 300 000 HUF into a bank account for 4 years. The bank pays simple interest at 2% per annum. How much interest will the bank pay altogether during the 4 years?

Multiple Choice

Peter decided to deposit 300 000 HUF into a bank account for 4 years. The bank pays simple interest at 2% per annum. How much interest will the bank pay altogether during the 4 years?

• 3 000 HUF

• 24 700 HUF

• 8 000 HUF

• 24 000 HUF

Compound interest

Compound interest accrues and is added to the accumulated interest of previous periods; it includes interest on interest, in other words. 

TASK 3

Peter earned 250 000 HUF during the summer. He decided to spend 50 000 HUF and deposit the rest into a bank account for 3 years. The bank pays compound interest at 1,5% per annum. How much interest will the bank pay altogether during the 3 years?

Multiple Choice

Peter earned 250 000 HUF during the summer. He decided to spend 50 000 HUF and deposit the rest into a bank account for 3 years. The bank pays compound interest at 1,5% per annum. How much interest will the bank pay altogether during the 3 years?

• 4 515 HUF

• 9 215

• 9 136 HUF

• 10 920 HUF

TASK 4

Peter decided to deposit 500 000 HUF into a bank account for 4 years. The bank pays compound interest at 2% per annum. How much interest will the bank pay altogether during the 4 years?

Multiple Choice

Peter decided to deposit 500 000 HUF into a bank account for 4 years. The bank pays compound interest at 2% per annum. How much interest will the bank pay altogether during the 4 years?

• 41 216 HUF

• 40 500 HUF

• 80 350 HUF

• 10 910 HUF

TASK 5

Your bank has two offers: simple interest at 4% per annum OR compound interest at 3,9% per annum. Which offer is better for you if you want to deposit your money for 2 years?

Multiple Choice

Your bank has two offers: simple interest at 4% per annum OR compound interest at 3,9% per annum. Which offer is better for you if you want to deposit your money for 2 years?

• the first

• the second

TASK 6

Your bank has two offers: simple interest at 4% per annum OR compound interest at 3,9% per annum. Which offer is better for you if you want to deposit 100 000 for 4 years?

Multiple Choice

Your bank has two offers: simple interest at 4% per annum OR compound interest at 3,9% per annum. Which offer is better for you if you want to deposit 100 000 for 4 years?

• the first

• the second

TASK 7

Peti and Pali are twins. Their parents deposited 200 000 HUF for 10 years for both of them but with different conditions. The bank pays simple interest for Peti at 4% per annum and compound interest for Pali at 3,9% per annum. How much more interest will the bank pay for Pali during these 10 years?

Multiple Choice

Peti and Pali are twins. Their parents deposited 200 000 HUF for 10 years for both of them but with different conditions. The bank pays simple interest for Peti at 4% per annum and compound interest for Pali at 3,9% per annum. How much more interest will the bank pay for Pali during these 10 years?

• 93 214 HUF

• 80 000 HUF

• 13 214 HUF

• 3 214 HUF

Multiple Choice

Peti and Pali are twins. Their parents deposited 200 000 HUF for 10 years for both of them but with different conditions. The bank pays simple interest for Peti at 4% per annum and compound interest for Pali at 3,9% per annum. By what percentage will Pali's money exceed Peti's money?

• 1 %

• 16,5 %

• 6,66 %

• 4,7 %

TASK 8

Which of the following graphs can show compound interest rate?

Multiple Choice

Which of the following graphs can show compound interest rate?

• f(x)

• g(x)