Mathematics Applications · Unit 4 · Topic 4.2
Loans, investments and annuities
5 free questions, 2 calculator-free and 3 calculator-assumed, with worked solutions written like marking keys.
1
Calculator-assumedfoundation
\5000isinvestedat6\%perannum,compoundedannually.Determineitsvalueafter3$ years, correct to two decimal places. 3 marks[3]
2
Calculator-assumedstandard
\2000isinvestedat12\%perannum,compoundedmonthly.Determineitsvalueafter2$ years, correct to two decimal places. 4 marks[4]
3
Calculator-assumedstandard
A reducing balance loan is modelled by Ln+1=1.005Ln−300 with L0=10000. Determine L1. 3 marks[3]
4
Calculator-freefoundation
A loan of \10000isrepaidwith12 monthly payments of \900. Determine the total interest paid. 3 marks[3]
5
Calculator-freefoundation
A loan of \9000isrepaidwith24 monthly payments of \450. Determine the total interest paid. 3 marks[3]