Year 12 QCAA General maths Revision Part 2

Convert 7.2% per annum to a decimal compounded monthly

• 0.072

• 0.006

• 0.6

• 0.72

Convert the annual interest rate of 10.44% to a decimal compounded daily

• 0.00029

• 0.0002

• 0.002

• 0.029

$2000 is borrowed at an interest rate of 8.4% per annum compounded monthly. What is the value of the investment after 6 months? To 2 DP

(a)  

Given the simple interest recurrence relationship. What would be the value of the investment after 5 years?

• 2304

• 2228

• 2380

• 2456

After how many years will the investment reach $3000

• 13

• 15

• 12

• 14

The greater the number of compounding periods the greater the return on the investment

• True

• False

Calculate the effective annual interest rate of 6.2% compounded monthly to 2 DP

• 6.41%

• 6.38%

• 6.25%

• 6.15%

Calculate the effective interest rate of 4.6% annual rate compounded Quarterly

• $.58%

• 4.67%

• 4.68%

• 5.12%

$3000 is invested for 5 years at 3.5% compounded daily. Value after 5 years will be to 2 DP

• $3573.71

• $3573.70

• $3524.01

• $3524.99

$12500 is invested for 7 years with compound interest of 6.7% compounded monthly. Value of investment to 2DP is

• $19953.88

• $19953.91

• $19953.89

• $19953.92