Mat 540 Quiz 1

SYDNEY INSTITUTE OF BUSINESS AND TECHNOLOGY ACST101 TECHNIQUES AND ELEMENTS OF FINANCE REVISION - LECTURES 1, 2 & 3 Sample Class Test 1 Instructions: For Questions 1, 2 and 4 write your answer in the space provided. For Question 3 all working must be shown. Total marks for the test = 10. Time: 50 minutes writing time (no reading time)

Question 1 (2 Marks ) (i) Vincent invested a sum of $5,000 in a bank account earning 5½% p.a simple interest on 1 September 2003. On what date will Vincent’s bank account reach an accumulated balance of $5,039.18? 23 October 2003

(ii)

A 90-day note is to mature for $2,000 plus simple interest at 7% p.a. Calculate the maturity payment (correct to the nearest cent). $2,034.52

Parts (iii) to (iv) are based on the following information: A 180-day promissory note will mature for $10,000. Sixty days after issue it was purchased by Quentin for $9,786.30. (iii) Calculate (as a percentage, correct to 2 decimal places) the rate of simple discount p.a. used in calculating the purchase price paid by Quentin. 6.50% p.a.
Calculate the rate of simple interest p.a. (as a percentage, correct to 2 decimal places) earned by Quentin on his investment. 5.37%