Financial Mathematics Review Test

How much interest do you earn if you invest $500 for 3 years at 5·6% p.a. simple interest?

• $840

• $28

• $5.60

• $84

$7385 is borrowed for 204 days at a flat rate of 6% p.a. The simple interest to be paid is:

• $260.03

• $285.65

• $272.42

• $278. 61

The total amount to be repaid on a loan of $580 over 7 months at 13·2% per annum (simple interest) is:

• $\text{580}\ \times13.2\%\times\frac{7}{12}+580$

• $580\times0.132\times7+580$

• $580\times13.2+\frac{7}{12}+580$

• $580\times13.2\%\times\frac{7}{12}$

Hung received $6281 after investing $5900 for 27 months. The rate of simple interest in per cent per annum is closest to:

• 0·03%

• 2·9%

• 0·47%

• 4·7%

If you wished to borrow $100 000, which of the following loan options would result in the lowest amount of simple interest being paid?

• 5% for 7 years

• 7% for 4 years

• 6% for 5 years

• 3% for 10 years

$20 100 is invested at a rate of 6·9% p.a., compounded annually. The value of the investment after 2 years is closest to:

• $22 969.50

• $22 873.80

• $24 554.39

• $21 486.90

Which of the rates of depreciation, 5% p.a., 6% p.a., 7% p.a. or 8% p.a., would cause a car valued at $9000 to drop in value to $7784 in 2 years?

• 5% p.a.

• 6% p.a

• 7% p.a

• 8% p.a.

A sum of money invested for nine months at 12% p.a., compounded quarterly, accumulates to $5900. The initial deposit, in dollars, was:

• $\frac{5900}{1.03^4}$

• $\frac{5900}{1.12^{\frac{3}{4}}}$

• $\frac{5900}{1.03^3}$

• $5900\times1.04^3$

A car depreciates at a rate of 16% p.a. Its value after 3 years is $3676. What was its initial value?

• $4426

• $6202

• $7253

• $7383

The table shows interest rates of term deposits for a period up to 2 years.

Samara invests $15 000 for 1 year. What is the value of her investment after 1 year?

• $15 712.50

• $15 720

• $15 727.50

• $15 738