Ch 14 Series and finance

Liam’s salary increases by 4.5% each year. What is the common ratio of the geometric series formed by his annual salaries?

• 0.045

• 0.45

• 1.45

• 1.045

• 7

• 8

• 9

• 10

The value of a yo-yo halves every year. If Sam sells 1 yo-yo each year starting from $10, how much will Sam earn eventually?

• $15

• $20

• $30

• $55

The profits of a company are growing at 17.5% per year. If this trend continues, how many years will it be before the profit has increased by over 1500%?

• 15

• 16

• 17

• 18

Erin invested $25 000 for 3 years at 12% per annum, with interest compounded monthly. How much interest did she earn?

• $10 769

• $25 757

• $35 123

• $15 123

Caterina invested an amount of money at 7% per annum compound interest, with interest compounded annually. After how many years will she first have at least twice her initial amount?

• 27 years

• 10 years

• 26 years

• 11 years

Ali has been making annual contributions of $10 000 into a superannuation fund. The fund pays interest of 6.4% per annum, compounded annually. If Ali just made his sixth contribution, how much, in dollars, does he have in the fund?

Cecilia wants to have $50 000 five years from now. What monthly amount must she invest at 7.5% per annum, compounded monthly, in order to achieve her goal?

• $1351.50

• $685.12

• $140.77

• $689.40

Angelo takes out a loan of $18 000 at a reducible interest rate of 6% per annum, with interest compounded monthly. He agrees to make monthly repayments of $348. How much is owing on the loan after one year?

• $18 732

• $14 796

• $14 817

• $17 742

Carla and Mica took out a mortgage of $300 000 at a reducible interest rate of 6% per annum, with interest compounded monthly. They agreed to repay the loan over 30 years. What is their monthly repayment?

• $1816

• $2333

• $5019

• $1799