Geometric Sequences, Series and Finance (Basics)

What is the common ratio of the geometric sequence 2, 4, 8, 16, ...?

• 3

• 5

• 10

• 2

Find the 10th term of the geometric sequence 3, 6, 12, 24, ...?

• 48

• 96

• 192

• 1536

In an amortization schedule, what does the term 'principal' refer to?

• The original amount of money borrowed or the outstanding balance of a loan.

• The length of time to repay the loan.

• The monthly payment amount.

• The interest rate on the loan.

Calculate the future value when $5000 is invested at an interest rate of 5% per annum for 3 years.

• $5788.13

• $5500.00

• $6000.00

• $5750.00

In a geometric sequence, what is the formula to find the nth term?

• n(r)^u

• u₁(r)ⁿ

• u₁(r)ⁿ⁺¹

• u₁(r)^n-1

Find the balance in the account after the given period.

$5000 deposit earning 1.5% compounded quarterly after 3 years

• $5,229.70

• $7,604.38

• $7,777.27

• $5,538.86

• 6

• 7

• 8

• 5

The current interest rate is 4.9%pa, the inflation rate is 2%.

What is the real interest rate?

Mathematical Equivalence

ON

Annie has just retired. She has $120000 saved. She puts it into an annuity fund at an interest rate of 3.3%pa . She wants to take out $1000 each month. How long will the money last her? Answer in years.

Mathematical Equivalence

ON

Jane just borrowed $240000 from the bank at 7.9%pa compounded monthly. She needs to pay it off within 15 years. How much does she need to pay each month? Round to 2 decimal places

Mathematical Equivalence

ON