Module 5

Increase;

• $7500 by 40%

• $4500 by 25%

• $134 by 18%

• $2000 by 30%

• $500 by 50%

Answer explanation

To increase $7500 by 40%, you would calculate 7500 * 0.40 = 3000. Adding this to the original amount gives 7500 + 3000 = $10500, which is the correct choice.

Decrease;

• $8700 by 30%

• $4200 by 15%

• $342 by 23%

• $5000 by 10%

• $1000 by 5%

Answer explanation

To decrease $4200 by 15%, calculate 15% of $4200 which is $630, then subtract $630 from $4200 to get the new amount after the decrease.

Find the percentage increase or decrease of the following changes;

• $350 becomes $420

• $560 becomes $630

• $1450 becomes $650

• $800 becomes $1000

• $1200 becomes $900

Answer explanation

To find the percentage increase, calculate the difference between the new and old values, then divide by the old value and multiply by 100. For $560 to $630, the increase is $70. Percentage increase = (70/560) * 100 = 12.5%

$49,000 is invested at 12% pa for 5 years. Find the amount the investment is worth at the end if it is compounded monthly.

• $85,000.00

• $87,000.00

• $89,000.00

• $90,000.00

• $88,489.84

Answer explanation

$49,000 invested at 12% compounded monthly for 5 years gives $88,489.84. Therefore, the correct answer is $88,489.84.

$30,000 is invested at 18% pa for 7 years. Find the amount the investment is worth at the end if it is compounded quarterly.

• $150,000

• $75,000

• $60,000

• $100,000

• $120,000

Answer explanation

Using the formula for compound interest A = P(1 + r/n)^(nt), where A is the amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years, we get A = $30,000(1 + 0.18/4)^(4*7) = $100,000. Therefore, the correct answer is $100,000.

$8,000 is invested at 10% pa for 3 years. Find the amount the investment is worth at the end if it is compounded six-monthly.

• $10,800

• $10,250

• $10,500

• $10,000

• $10,331

Answer explanation

$8,000 compounded semi-annually at 10% for 3 years gives $10,331. Choose $10,331 as the correct answer.

$10,000 is invested at 15% pa for 6 years. Find the amount the investment is worth at the end if it is compounded monthly.

• $27,345.67

• $22,000.00

• $25,000.00

• $20,113.57

• $23,489.20

Answer explanation

The correct answer is $23,489.20. Using the formula for compound interest A = P(1 + r/n)^(nt), where A is the amount, P is the principal, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years, we calculate A = $10,000(1 + 0.15/12)^(12*6) = $23,489.20.

A car costs $35,000 to buy and it has a rate of depreciation of 15% per annum. Find the value of the car after 7 years.

• $16,000

• $15,000

• $14,000

• $12,000

• $10,000

Answer explanation

The value of the car after 7 years can be calculated using the formula: $35,000 * (1 - 0.15)^7 = $14,000. Therefore, the correct answer is $14,000.

Find the percentage increase or decrease of the following changes;

• $500 becomes $750

• $1200 becomes $900

• $3000 becomes $2700

• $1500 becomes $1800

• $2000 becomes $2500

$25,000 is invested at 5% pa for 4 years. Find the amount the investment is worth at the end if it is compounded semi-annually.

• $30,525.63

• $28,000.00

• $27,500.00

• $26,500.00

• $29,000.00