Financial Mathematics module review

This is a 23 mark module exam.

Questions.

Question 1. [4 marks]

a) [1 mark]

A car’s weight decreased from 1010 kg to 935 kg, what percentage decrease is this?

b) [1 mark]

A child increased its weight from 2 kg to 2.6 kg, what percentage increase is this?

c) [2 mark]

A bank account increased by $330, if it is now at $1437, what is the percentage increase of this bank account?

Question 2. [4 marks]

a) [2 marks]

If a dress is on sale – it was originally $320 – the sale is 37% off, how much is the dress now?

b) [2 marks]

After buying the above dress on sale, you descide to resell it for $301, what is the percentage loss or gain of this sale for you?

Question 3. [8 marks]

a) A student is trying to determine which bank account to invest in. The bank is providing simple interest. The first account is 5% per annum, you put $300 into the account and can withdraw it after 4 years.

How much money will you have after the 4 years? [1 mark]

b) The second account requires you to put $280 but you end up with the same final amount that you got from the first account after 5 years. What is the interest rate they are charging you? [3 marks]

c) If you were to invest $100 in both accounts for a total of 10 years. Which account would pay you more and what is the total difference in the percentage growth between the two accounts? [4 marks]

Question 4. [3 marks]

400 plants are invested in for 3 years of dividing, 5% p.a of the plants will divided producing an additional plant from each one that is divided where interest is compounded annually.

a) How many plants will there be after 4 years? [2 marks]

b) How many additional plants were added to the 400 initial from dividing [1 mark]

Question 5. [4 marks]

There are two bank accounts, one is charging 5% p.a. simple interest while the other is charging 4% p.a compounded annually. Which account will create more interest after 5 years? If you started with $500, how much more interest will you generate with the better account?

Answers.

Question 1.

a) -7%

b) 30%

c) 30 %

Question 2.

a) $201.6

b) 49% gain

Question 3.

a) $360

b) 5.7%

c) Account B, $7 difference

Question 4.

a) 486 plants

b) 86 plants were added

Question 5.

The simple interest account, you will have an additional $17

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