Year 10 Chapter 1 Review

Which is the correct decimal form of 3.201%

• 0.3

• 0.3201

• 0.03201%

• 0.03201

The number of compounding periods, n, if interest is compounded quarterly for 15 months, is:

• 3

• 4

• 5

• 6

The monthly simple interest payable (to the nearest dollar) on a loan of $3500 for 15 months at an interest rate of 5.25% p.a. is:

• $15

• $229

• $230

• $249

Tom invests $7500 at an interest rate of 5.5% p.a. compounded monthly for 3 months. How much will Tom collect at the end of the 3 months?

• $34.69

• $103.60

• $7603.13

• $7603.60

$4250 is invested for 18 months at an interest rate of 4.25% p.a. with interest compounded 6-monthly. The amount of interest earned on the investment is:

• $270.94

• $276.74

• $4520.94

• $4526.74

Jodie invests $5000 for 10 months at 3.75% p.a. simple interest, while Chris invests $4500 for 9 months at 3.75% p.a. compound interest, compounding monthly. Which of the following situations is correct?

• Jodie earns more interest than Chris.

• Chris earns more with compound interest than Jodie does with simple interest

• They both earn the same total amount of interest.

• They both earn the same amount of interest for each month of their investment.