Math Assessment

Part A:

So, what is interest, interest is a sum of cash paid on regular basis at a fixed rate for the use
of all money lent or deferred payment. There are two kinds of ways of determining interest,
both: Simple and compound interest. Simple interest is calculated on the amount of loan.
Compound interest is calculated on the loan amount along with accumulated interest of
previous periods which is known as ‘interest on interest’. As shown in the table we can see
that compound interest is better when it comes to investing as it allows funds to grow at a
faster rate, whereas simple interest isn’t the same. The Total Simple interest at 5 years with
the principal added is: $8280, the total of compound interest is: $8653.91. Compound
interest earns $373.91 more than simple interest. Therefore, compound interest is better
for investing then simple interest.

Part B:

Below are the three different banks I have researched about and their rates as shown, I have
chosen these banks due to the fact that they are for children (12 and older) and they are for
savings accounts.

I will be using the max interest rate to figure the interest out for each bank account: this
below is my evidence of research:

The amount of Suncorp bank Common BCU bank

years for (interest wealth bank (interest
interest earned) (interest earned)
earned)
1 $34.2 $23.4 $54
1.5 $51.42 $35 $81
2 $68.72 $46.95 $108.81
2.5 $86.11 $58.78 $136.5
(Graph made using excel):

Below is the research/evidence of the; airport, transfer, accommodation.

This is the airplane tickets:

This is the taxi for Ali (the transfer from airport to hotel) :
This is the hotel that the taxi will take Ali to (their was another hotel named Naymas hotel
but it wasn’t cheap so I picked this one below) :

All up total price:

876+200+8.96= 1106.96

Inflation rate of Bali (6.53%) added= 1179.24

Summary of all organisation of holiday plan: I have tried my best to get a reasonable
cheap flight for going and returning the price of the plane is $876. The Price of the transfer
(from the airport to the hotel, I made sure to right the details of location into website to
get the right price) it was the cheapest one I could find yet very good quality, the price is
$8.96. The hotel is very deluxe and yet cheap for Ali it is only $200 for a full 7 nights as
shown above. Above is evidence of my research.

The effect of inflation rate on the cost:

So what is inflation rate? A Inflation rate is the rate in which prices grow over time which
results to the decreasing of purchasing a value of money. This may have a large effect or
small effect but this is depending on the countries inflation rate. The inflation rate of Bali for
2021 is 6.53% which made a slight difference in the cost as it increased by $72. This is
equivalent to Ali’s 5 hour of work in discount chemist. Which is around one day of his work
this is quite reasonable amount for a inflation increase. Despite this if the accommodation,
airplane and transfer was a higher amount of money or if someone was buying something
worth a lot it could make a dramatic effect. There are different interest rates for different
countries here is a image to help you to further understand the rates in different countries: