Chapter 22
P1: FXS/ABE
P2: FXS
9780521740517c22.xml
CUAU031-EVANS
October 20, 2011
14:38
CHAPTER
22
MODULE 4
Revision:
Business-related
mathematics
22.1 Multiple-choice questions
1 Bennet invested $15 000 for 3 years. He earned 6.5% per annum interest, compounding annually. The value of his investment at the end of three years, to the nearest dollar, is:
A $15 004
B $18 119
C $18 220
D $17 925
E $35 850
2 Chen purchased a second-hand car for $20 250. She paid a deposit of $3000 and made repayments of $600 per month over 3 years. The total amount of interest Chen paid is:
A $350
B $2350
C $4350
D $6350
E $7250
3 Suppose that Chen was offered an alternative repayment scheme, where she still paid a deposit of $3000 but a flat rate of interest of 10% per annum for 3 years on the outstanding balance. The total amount of interest paid now would be:
A $275
B $1725
C $2025
4 The following is an extract from a bank account showing all transactions for the period
1 April to 30 June.
Date
1 April
30 April
21 May
28 May
30 Jun
1 July
D $5175
Credit
E $6075
Debit
Interest
$7260
$1824
$1380
$1730
Balance
$2270
$9350
$7706
$6326
$8056
Interest is calculated at a rate of 3% per annum on the minimum monthly balance and paid into the account quarterly. Interest for the April, May, June quarter is paid on 1 July. The amount of interest paid on 1 July is closest to:
A $37.31
B $44.87
C $49.19
608
D $447.66
ISBN: 9781107655904
© Peter Jones, Michael Evans, Kay Lipson 2012
Photocopying is restricted under law and this material must not be transferred to another party
E $590.28
Cambridge University Press
P1: FXS/ABE
P2: FXS
9780521740517c22.xml
CUAU031-EVANS
October 20, 2011
14:38
Chapter 22 — Revision
609
A $353.82
B $397.17
C $629.88
D $1362.07 E $4256.77
[VCAA pre 2006]
6 For a reducing balance loan with quarterly repayments,
P2: FXS
9780521740517c22.xml
CUAU031-EVANS
October 20, 2011
14:38
CHAPTER
22
MODULE 4
Revision:
Business-related
mathematics
22.1 Multiple-choice questions
1 Bennet invested $15 000 for 3 years. He earned 6.5% per annum interest, compounding annually. The value of his investment at the end of three years, to the nearest dollar, is:
A $15 004
B $18 119
C $18 220
D $17 925
E $35 850
2 Chen purchased a second-hand car for $20 250. She paid a deposit of $3000 and made repayments of $600 per month over 3 years. The total amount of interest Chen paid is:
A $350
B $2350
C $4350
D $6350
E $7250
3 Suppose that Chen was offered an alternative repayment scheme, where she still paid a deposit of $3000 but a flat rate of interest of 10% per annum for 3 years on the outstanding balance. The total amount of interest paid now would be:
A $275
B $1725
C $2025
4 The following is an extract from a bank account showing all transactions for the period
1 April to 30 June.
Date
1 April
30 April
21 May
28 May
30 Jun
1 July
D $5175
Credit
E $6075
Debit
Interest
$7260
$1824
$1380
$1730
Balance
$2270
$9350
$7706
$6326
$8056
Interest is calculated at a rate of 3% per annum on the minimum monthly balance and paid into the account quarterly. Interest for the April, May, June quarter is paid on 1 July. The amount of interest paid on 1 July is closest to:
A $37.31
B $44.87
C $49.19
608
D $447.66
ISBN: 9781107655904
© Peter Jones, Michael Evans, Kay Lipson 2012
Photocopying is restricted under law and this material must not be transferred to another party
E $590.28
Cambridge University Press
P1: FXS/ABE
P2: FXS
9780521740517c22.xml
CUAU031-EVANS
October 20, 2011
14:38
Chapter 22 — Revision
609
A $353.82
B $397.17
C $629.88
D $1362.07 E $4256.77
[VCAA pre 2006]
6 For a reducing balance loan with quarterly repayments,