WorksheetsFinancial Math
Total questions: 45
Worksheet time: 2hrs 30mins
In the compound interest formula:
A = P(1 + R)n
A is:
the annual interest rate
the total amount of interest
the amount of the final balance
$9000 is invested for 6 years at 4% pa compounded annually.
Which one of the following is not a correct use of the formula:
A = P(1 + R)n?
A= 9000 × (1 + 0.04)6
A= 9000 × (1 + 4%)6
A = 9000 × (1 + 4)6
A= 9000 × 1.046
Calculate the number of periods (n) and the rate of interest (r) offered per period for:
11% p.a. over 6years, paid quarterly
n = 6, r = 11
n = 6, r = 1.11
n = 24, r = 2.75
n = 12, r = 11
Calculate the number of periods (n) and the rate of interest (r) offered per period for:
18% p.a. over 4 years, paid monthly
n = 4, r = 18
n = 48, r = 1.5
n = 48, r = 18
n = 4, r = 1.5
Determine the amount after 2 years if $5000 is compounded fortnightly at 9% p.a.
Round your answer to the nearest cent.
(a)
Determine the amount after 8 years if $20000 is compounded annually at 12.5% p.a.
Round your answer to the nearest cent.
(a)
How much will $56000 amount to when it is invested at 8% p.a. compounding yearly for 3 years?
(a)
House prices in Brisbane are increasing at the rate of 8% per year. If a house is bought today for $450000
what will its value be in 10 years, to the nearest thousand dollars?
$971,516
$972,000
$1.56905
$4.83183
Find the compound interest earned when $10000 is invested at 6.2% for 2 years.
(a)
House prices in Sydney increase in value 7.5% per year on average. What will a house currently valued at $850 000 be worth in 5 years (to the nearest $100)?
$1,220,200
$1,220,284
$1,220,285
$1,220,300
A $500000 house appreciates at 5% p.a. Which of the following figures shows its correct appreciated value in 6 years time, rounded to the nearest thousand dollars?
$8000
$25,000
$670,000
$5,695,000
Nigel invested $15 000 for 4 years at 8.5% simple interest. At the end of the 4 years he reinvested his total funds at 8% interest compounded annually for a further 3 years.
Calculate the final amount of Nigel's investment at the end of the 7 years.
(a)
Alex invested $8000 at 5% pa simple interest for 2 years.
How much extra interest would Alex have earned if he had invested his money at 5% pa compound interest?
(a)
The population of a town was 120 000 at the end of 2010.
If the population grows on average 4% pa compounded yearly, calculate the expected population at the start of 2014 (to the nearest person).
(a)
The population of fish in the water off a coastal town is increasing at the rate of 3.5% each year. If the current number of fish is 2500 what is the expected population in 5 years?
(a)
Select the option that would pay the most interest:
$7000 invested at 12.5% p.a., compounded annually for 3 years.
$7000 invested at 9% p.a., compounded annually for 5 years.
Select the correct formula for simple interest, where 𝐼 is the total amount of interest, 𝑃 is the principal amount, 𝑟 is the percentage interest rate and 𝑡 is the time.
𝐼=𝑃𝑟𝑡
Select the option that would pay the most interest on an investment of $15000 for 4 years:
12% p.a. simple interest
12% p.a. compound interest, paid annually
State the values of 𝑃, 𝑟 and 𝑛 for an investment of $2500 at 14% p.a., compounded annually for 6 years.
P = 14, r = 6, n = 2500
P = 5487.43, r = 14, n = 6
P = 2987, r = 14, n = 6
P = 2500, r = 14, n = 6
State the value of 𝐼 for an investment of $42000 at 9% p.a. simple interest over 36 months.
(a)
Complete the table for simple interest.
Rate = 6, Interest = $9440
Rate = 39.33, Interest = $9440
Rate = 6, Interest = $1440
Rate = 39.33, Interest = $1440
Find the amount of simple interest accumulated on an investment of $9000 at 10.8% p.a. payable annually for 5 years.
Amount of simple interest earned =
(a)
Find the amount of compound interest accumulated on an investment of $9000 at 10.8% p.a. payable annually for 5 years.
Amount of compound interest earned =
(a)
Find the amount of simple interest accumulated on an investment of $120000 at 7.5% p.a. payable annually for 6 years.
(a)
Find the amount of compound interest accumulated on an investment of $120000 at 7.5% p.a. payable annually for 6 years.
(a)
Complete the table for simple interest
P= $12,000, A = $15,960
P = $.00689, A = $3960.00698
P = $0.0925, A.= $3960.0925
P = $15,000, A= $18,960
When the overall time for a simple interest investment is doubled, the interest accumulated:
Halves
Doubles
Remains unchanged
For how many complete years must $15 000 be invested at 4.5% pa to grow to more than $20 000?
(a)
Eloise invested at 3.5% pa simple interest over 4 years. If her total interest is $910, how much did she originally invest?
(a)
Mae invested $5000 for 3 months at 4.8% pa simple interest.
Which two of these calculations will find the interest earned?
I= 5000 × 0.048 × 3
I= 5000 × 0.048 × 0.25
I= 5000 × 0.004 × 3
I= 5000 × 0.004 × 0.25
Edward invested $15 000 at 5.2% pa simple interest.
How much interest will he earn in 8 months?
(a)
Rearrange 100P rt to make R the subject.
r=100IPt
r=I×100Pt
r=PtI×100
r=PtI+100
An investment of $12 000 grew to $12 450 in 6 months. What was the interest rate per annum?
(a)
Ann's computer has a total capacity of 60 GB. At present she is using 39% of the capacity.
How much free space does she have?
23.4GB
1.54GB
0.65GB
36.6GB
A manufacturer increased the number of biscuits made each week from 4800 to 13 200.
Write this as a percentage increase.
(a)
Quentin bought shares on the stock exchange worth $3240. Over 10 years the shares increased in value by 400%. The new value of the shares is:
$9720
$6400
$12,960
$16,200
A shirt was discounted by 25% and then this price was further discounted by another 10%.
If the shirt was originally priced at $129.95, express the savings as a percentage of the original price.
(a)
The price of an item is increased by 50%. What percentage decrease is required to return to its original price? Round to 1 decimal place.
(a)
If there were originally 12 students in a class, the number of students after a 50% increase would be:
(a)
The temperature dropped from 21°C to 14°C.
Which of these shows the expression of the percentage change?
Chloe bought a block of land for $40 000. After ten years, she sold the land for $186 000.
Calculate her percentage profit on her cost price.
21.505%
465%
365%
78.49%
If you save 18.3%, what percentage do you pay?
(a)
These roller blades normally cost $200.
Emma buys them for $140.
What percentage discount did she receive?
(a)
A dress is sold for $87. If this gives a profit of 45% on the cost price, what was the cost price?
(a)
Zara bought shares for $10.40 a share.
Over the five years she owned them, the shares increased in price and she sold them at a 15% profit.
Calculate the selling price of each share.
(a)
