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WorksheetsFinancial Mathematics Review Test
Total questions: 15
Worksheet time: 1hrs 22mins
How much interest do you earn if you invest $500 for 3 years at 5·6% p.a. simple interest?
$840
$28
$5.60
$84
$7385 is borrowed for 204 days at a flat rate of 6% p.a. The simple interest to be paid is:
$260.03
$285.65
$272.42
$278. 61
The total amount to be repaid on a loan of $580 over 7 months at 13·2% per annum (simple interest) is:
580 ×13.2%×127+580
580×0.132×7+580
580×13.2+127+580
580×13.2%×127
Hung received $6281 after investing $5900 for 27 months. The rate of simple interest in per cent per annum is closest to:
0·03%
2·9%
0·47%
4·7%
If you wished to borrow $100 000, which of the following loan options would result in the lowest amount of simple interest being paid?
5% for 7 years
7% for 4 years
6% for 5 years
3% for 10 years
$20 100 is invested at a rate of 6·9% p.a., compounded annually. The value of the investment after 2 years is closest to:
$22 969.50
$22 873.80
$24 554.39
$21 486.90
Which of the rates of depreciation, 5% p.a., 6% p.a., 7% p.a. or 8% p.a., would cause a car valued at $9000 to drop in value to $7784 in 2 years?
5% p.a.
6% p.a
7% p.a
8% p.a.
A sum of money invested for nine months at 12% p.a., compounded quarterly, accumulates to $5900. The initial deposit, in dollars, was:
1.0345900
1.12435900
1.0335900
5900×1.043
A car depreciates at a rate of 16% p.a. Its value after 3 years is $3676. What was its initial value?
$4426
$6202
$7253
$7383
The table shows interest rates of term deposits for a period up to 2 years.
Samara invests $15 000 for 1 year. What is the value of her investment after 1 year?
$15 712.50
$15 720
$15 727.50
$15 738
For the rest of the questions including Q11 work in your books and write your answer here!!
Q11. For how many months would $32 000 have to be invested at 9% p.a. simple interest to produce $1200 interest?
(a)
How much interest is earned if $15 000 is invested for 3 years at 4·5% p.a., compounded monthly?
(a)
How much more will an investor receive on an investment of $24 000 over five years in an account offering 7·5% p.a. if the interest is compounded monthly rather than annually?
(a)
WRITE ALL SIX ANSWERS FOR THE TABLE ONE AFTER ANOTHER WITH A COMMA AFTER EACH ANSWER(NO GAPS or $ SIGN)!!!
Q14) $1000 is invested at an annual interest rate of 5%.
Complete the table below by calculating the interest received after each year for both simple interest and compound interest (compounded annually):
(a)
Explain the difference in the amount of simple interest received each year compared to the compound interest in Q 14.
