Loan and Ann [142 marks]

1a. [3 marks]

Markscheme
N = 24
I % = 14
PV = −14000
FV = 0
P/Y = 4
C/Y = 4 (M1)(A1)
Note: Award M1 for an attempt to use a financial app in their technology,
award A1 for all entries correct. Accept PV = 14000.
(€)871.82 A1
[3 marks]

1b. [2 marks]

Markscheme
4 × 6 × 871.82 (M1)
(€) 20923.68 A1
[2 marks]

1c. [2 marks]

Markscheme
20923.68 − 14000 (M1)
(€) 6923.68 A1
[2 marks]
1d. [2 marks]

Markscheme
0.9 × 14000 (= 14000 − 0.10 × 14000) M1
(€) 12600.00 A1
[2 marks]

1e. [3 marks]

Markscheme
N = 72
PV = 12600
PMT = −250
FV = 0
P/Y = 12
C/Y = 12 (M1)(A1)
Note: Award M1 for an attempt to use a financial app in their technology,
award A1 for all entries correct. Accept PV = −12600 provided PMT = 250.
12.56(%) A1
[3 marks]

1f. [2 marks]

Markscheme
EITHER
Bryan should choose Option A A1
no deposit is required R1
Note: Award R1 for stating that no deposit is required. Award A1 for the
correct choice from that fact. Do not award R0A1.
OR
Bryan should choose Option B A1
cost of Option A (6923.69) > cost of Option B (72 × 250 − 12600 = 5400)
R1
Note: Award R1 for a correct comparison of costs. Award A1 for the correct
choice from that comparison. Do not award R0A1.
[2 marks]
1g. [4 marks]

Markscheme
real interest rate is 0.4 − 0.1 = 0.3% (M1)
value of other payments 250 + 250 × 1.003 + … + 250 × 1.00371
use of sum of geometric sequence formula or financial app on a GDC (M1)
= 20 058.43
value of deposit at the end of 6 years
1400 × (1.003)72 = 1736.98 (A1)
Total value is (€) 21 795.41 A1
Note: Both M marks can awarded for a correct use of the GDC’s financial app:
N = 72 (6 × 12)
I % = 3.6 (0.3 × 12)
PV = 0
PMT = −250
FV =
P/Y = 12
C/Y = 12
OR
N = 72 (6 × 12)
I % = 0.3
PV = 0
PMT = −250
FV =
P/Y = 1
C/Y = 1
[4 marks]
2a. [3 marks]

Markscheme
* This sample question was produced by experienced DP mathematics senior
examiners to aid teachers in preparing for external assessment in the new
MAA course. There may be minor differences in formatting compared to
formal exam papers.
Number of time periods 12 × 5 = 60 (A1)
N = 60
I% = 3. 1
PV = 0
PMT = 200
P/Y = 12
C/Y = 12
Value ($)12, 961. 91 (M1)A1
[3 marks]

2b. [2 marks]

Markscheme
METHOD 1
Real interest rate = 3. 1 − 2. 0 = 1. 1% (M1)A1
METHOD 2
1+0.031
1+0.02
= 1. 01078 … (M1)
1. 08% (accept 1. 1%) A1
[2 marks]
2c. [2 marks]

Markscheme
N = 60
I% = 1. 1
PV = 0
PMT = 200
P/Y = 12
C/Y = 12
($)12, 300(12, 330. 33 …) (M1)A1
Note: Award A1 for $12, 300 only.
[2 marks]

3a. [2 marks]

Markscheme
2400(1.04)10 = $3552.59 M1A1
[2 marks]

3b. [3 marks]

Markscheme
real interest rate = 4 − 1.5 = 2.5% A1
2400(1.025)10 = $3072.20 M1A1
[3 marks]

4a. [3 marks]

Markscheme
Use of finance solver M1
N = 360, I = 5%, Pmt = 4000, FV = 0, PpY = 12, CpY = 1 A1
$755000 (correct to 3 s.f.) A1
[3 marks]
4b. [3 marks]

Markscheme
N = 384, I = 5%, PV = 0, FV = 754638, PpY = 12, CpY = 1 M1A1
$817 per month (correct to 3 s.f.) A1
[3 marks]

5a. [3 marks]

Markscheme
evidence of using Finance solver on GDC M1
N = 39.8 A1
It will take 40 months A1
[3 marks]

5b. [2 marks]

Markscheme
40 × 200 = $8000 M1A1
[2 marks]

5c. [2 marks]

Markscheme
Monthly payment = $316 ($315.70) M1A1
[2 marks]

5d. [2 marks]

Markscheme
24 × 315.7 = $7580 ($7576.80) M1A1
[2 marks]
5e. [1 mark]

Markscheme
The monthly repayment is lower, he might not be able to afford $316 per
month. R1
[1 mark]

5f. [1 mark]

Markscheme
the total amount to repay is lower. R1
[1 mark]

6a. [2 marks]

Markscheme
evidence of using Finance solver on GDC M1
Monthly payment = $785 ($784.60) A1
[2 marks]

6b. [2 marks]

Markscheme
240 × 785 = $188000 M1A1
[2 marks]

6c. [3 marks]

Markscheme
N = 180.7 M1A1
It will take 181 months A1
[3 marks]
6d. [2 marks]

Markscheme
181 × 1000 = $ 181000 M1A1
[2 marks]

6e. [1 mark]

Markscheme
The monthly repayment is lower, she might not be able to afford $1000 per
month. R1
[1 mark]

6f. [1 mark]

Markscheme
the total amount to repay is lower. R1
[1 mark]

6g. [2 marks]

Markscheme
$74400 (accept $74300) M1A1
[2 marks]

6h. [2 marks]

Markscheme
Use of finance solver with N =120, PV = $74400, I = 7% A1
$855 (accept $854 − $856) A1
[2 marks]
7a. [3 marks]

Markscheme
METHOD 1
N = 5 OR N = 10
I% = 2. 75 I% = 2. 75
P V = −1500 P V = −1500
P MT = 0 P MT = 0
P /Y = 1 P /Y = 2
C/Y = 2 C/Y = 2 (M1)(A1)

Note: Award M1 for an attempt to use a financial app in their technology, A1

for all entries correct.
METHOD 2
2.75 2×5
1500(1 + 2×100
) (M1)(A1)
1719. 49 euro A1

[3 marks]
7b. [3 marks]

Markscheme
METHOD 1
N = 5 OR N = 20
P V = ±1500 P V = ±1500
F V = ∓2250 F V = ∓2250
P MT = 0 P MT = 0
P /Y = 1 P /Y = 4
C/Y = 4 C/Y = 4 (M1)(A1)

Note: Award M1 for an attempt to use a financial app in their technology, A1

for all entries correct. P V and F V must have opposite signs.
METHOD 2

1500(1 + r )4×5 = 2250 OR (1 + r )4×5 = 1. 5 (M1)(A1)

4×100 4×100

Note: Award M1 for substitution in compound interest formula, A1 for correct

substitution and for equating to 2250 (if using LHS equation) or to 1. 5 (if using
RHS equation).

r = 8. 19(8. 19206 …) A1

Note: Accept r = 8. 19%.

Accept a trial and error method which leads to r = 8. 19.

[3 marks]

8a. [2 marks]

Markscheme
£495 × 0. 95 = £292(£292. 292 …) (M1)A1

[2 marks]
8b. [2 marks]

Markscheme
£495 × 0. 9k = 2200 × 0. 85k (M1)
k = 26. 1(26. 0968 …) A1

Note: Award M1A0 for k − 1 in place of k.

[2 marks]

8c. [1 mark]

Markscheme
depreciation rates unlikely to be constant (especially over a long time period)
R1

Note: Accept reasonable answers based on the magnitude of k or the fact

that “value” depends on factors other than time.

[1 mark]
9a. [3 marks]

Markscheme
EITHER
N=2
P V = −37 000
I% = 6. 4
P /Y = 1
C/Y = 4 (M1)(A1)

Note: Award M1 for an attempt to use a financial app in their technology,

award A1 for all entries correct.

OR
N=8
P V = −37 000
I% = 6. 4
P /Y = 4
C/Y = 4 (M1)(A1)
Note: Award M1 for an attempt to use a financial app in their technology,
award A1 for all entries correct.

OR
6.4 4×2
F V = 37 000 × (1 + 100×4
) (M1)(A1)

Note: Award M1 for substitution into compound interest formula, (A1) for
correct substitution.
= 42 010AUD A1

Note: Award (M1)(A1)A0 for unsupported 42009. 87.

[3 marks]
9b. [4 marks]

Markscheme
EITHER
P V = −37 000
F V = 50 000
I% = 6. 4
P /Y = 1
C/Y = 4 (M1)(A1)

Note: Award M1 for an attempt to use a financial app in their technology,

award A1 for all entries correct. The final mark can still be awarded for the
correct number of months (multiple of 3).

OR
P V = −37 000
F V = 50 000
I% = 6. 4
P /Y = 4
C/Y = 4 (M1)(A1)
Note: Award M1 for an attempt to use a financial app in their technology,
award A1 for all entries correct.

OR
6.4 4×n 6.4 n
50 000 < 37 000 × (1 + 100×4
) OR 50 000 < 37 000 × (1 + 100×4
)
(M1)(A1)

Note: Award M1 for the correct inequality, 50 000 and substituted compound
interest formula. Allow an equation. Award A1 for correct substitution.
THEN
N = 4. 74(years)(4. 74230 …) OR N = 18. 9692 … (quarters) (A1)
m = 57 months A1

Note: Award A1 for rounding their m to the correct number of months. The
final answer must be a multiple of 3. Follow through within this part.

[4 marks]
9c. [1 mark]

Markscheme
150 000AUD A1
[1 mark]

9d. [2 marks]

Markscheme
120 × 1700 − 150 000 (M1)
= 54 000AUD A1
[2 marks]

9e. [3 marks]

Markscheme
N = 120
P V = −150 000
P MT = 1700
FV = 0
P /Y = 12
C/Y = 12 (M1)(A1)

Note: Award M1 for an attempt to use a financial app in their technology or

an attempt to use an annuity formula or F V = 0 seen. If a compound interest
formula is equated to zero, award M1, otherwise award M0 for a substituted
compound interest formula.
Award A1 for all entries correct in financial app or correct substitution in
annuity formula, but award A0 for a substituted compound interest formula.
Follow through marks in part (d)(ii) are contingent on working seen.
r = 6. 46(%)(6. 45779 …) A1
[3 marks]
9f. [3 marks]

Markscheme
N = 60
I = 6. 46(6. 45779 …)
P V = −150 000
P MT = 1700
P /Y = 12
C/Y = 12 (M1)(A1)

Note: Award M1 for an attempt to use a financial app in their technology or

an attempt to use an annuity formula. Award (M0) for a substituted compound
interest formula. Award A1 for all entries correct. Follow through marks in part
(e) are contingent on working seen.
F V = 86973AUD A1
[3 marks]

9g. [3 marks]

Markscheme
204 000 −(60 × 1700 + 86973) OR 204 000 − 188 973 (M1)(A1)

Note: Award M1 for60 × 1700. Award M1 for subtracting their

(60 × 1700 + 86973) from their (204 000). Award at most M1M0 for their
204 000 −(60 × 1700) or M0M0 for their 204 000 −(86973). Follow through
from parts (d)(i) and (e). Follow through marks in part (f) are contingent on
working seen.
= 15 027AUD A1
[3 marks]
10a. [3 marks]

Markscheme
* This question is from an exam for a previous syllabus, and may contain
minor differences in marking or structure.
3.6 12×5
(F V =) 25 000 × (1 + 100×12
) (M1)(A1)
Note: Award (M1) for substituted compound interest formula, (A1) for correct
substitutions.

OR

N=5
I% = 3. 6
P V = ∓25 000
P /Y = 1
C/Y = 12 (A1)(M1)

Note: Award (A1) for C/Y = 12 seen, (M1) for all other correct entries.
OR

N = 60
I% = 3. 6
P V = ∓25 000
P /Y = 12
C/Y = 12 (A1)(M1)

Note: Award (A1) for C/Y = 12 seen, (M1) for all other correct entries.
(F V =) 29 922 (SGD) (A1) (C3)

Note: Do not award the final (A1) if answer is not given correct to the nearest
integer.

[3 marks]
10b. [3 marks]

Markscheme
5.7 2×1.5
20 000 = P V × (1 + 100×2
) (M1)(A1)
Note: Award (M1) for substituted compound interest equated to 20 000.
Award (A1) for correct substitutions.

OR

N = 1. 5
I% = 5. 7
F V = ±20 000
P /Y = 1
C/Y = 2 (A1)(M1)

Note: Award (A1) for C/Y = 2 seen, (M1) for all other correct entries.
OR

N=3
I% = 5. 7
F V = ±20 000
P /Y = 2
C/Y = 2 (A1)(M1)

Note: Award (A1) for C/Y = 2 seen, (M1) for all other correct entries.
(x =) 18 383 (SGD) (A1) (C3)

Note: Do not award the final (A1) if answer is not given correct to the nearest
integer (unless already penalized in part(a)).

[3 marks]
11a. [3 marks]

Markscheme
5.6 12×4
F V = 50 000(1 + 100×12
) (M1)(A1)
Note: Award (M1) for substitution into compound interest formula, (A1) for
correct substitution.

OR
N=4
I % = 5.6
P V = (∓) 50 000
P /Y = 1
C/Y = 12 (A1)(M1)
Note: Award (A1) for C/Y = 12 seen, (M1) for all other correct entries.

OR
N = 48
I % = 5.6
P V = (∓) 50 000
P /Y = 12
C/Y = 12 (A1)(M1)
Note: Award (A1) for C/Y = 12 seen, (M1) for all other correct entries.

(F V =) 62 520.97 (AUD) (A1) (C3)

Note: The final (A1) is not awarded if the answer is not correct to 2 decimal
places.
[3 marks]
11b. [3 marks]

Markscheme
2500 = 40 000(1 − 18 t
100
) OR 2500 = 40 000(0.82)t−1 (M1)(A1)
Note: Award (M1) for substitution into compound interest formula or term of
a geometric sequence formula and equating to 2500, (A1) for correct
substitution.

OR
I % = −18
P V = (±) 40 000
F V = (∓) 2500
P /Y = 1
C/Y = 1 (A1)(M1)
Note: Award (A1) for F V = (∓) 2500 seen, (M1) for all other correct entries.
P V and F V must have opposite signs.

OR
32800, 26896, 22054.72, 18084.87, 14829.59, … (M1)
t13 = 3031.38 and t14 = 2485.73 (A1)
Note: Award (M1) for a list of at least 5 correct terms beginning with 32800,
(A1) for identifying t13 and t14 .
(t =) 14.0 (13.9711 …) (A1) (C3)

[3 marks]
12a. [4 marks]

Markscheme
* This question is from an exam for a previous syllabus, and may contain
minor differences in marking or structure.

(A1)(A1)(A1)(A1)(C4)

[4 marks]

12b. [2 marks]

Markscheme
Incorrect (A1)
Natural numbers are positive integers. Integers can also be negative. (or
equivalent) (R1) (C2)
Note: Accept a correct justification. Do not award (R0)(A1).
Accept: a statement with an example of an integer which is not natural.
[2 marks]
13a. [3 marks]

Markscheme
* This question is from an exam for a previous syllabus, and may contain
minor differences in marking or structure.

17500 = 14000(1 + r )5 (M1)(A1)

100
Note: Award (M1) for substitution into the compound interest formula, (A1)
for correct substitution. Award at most (M1)(A0) if not equated to 17500.
OR
N=5
PV = ±14000
FV = ∓ 17500
P/Y = 1
C/Y = 1 (A1)(M1)
Note: Award (A1) for C/Y = 1 seen, (M1) for all other correct entries. FV and
PV must have opposite signs.
= 4.56 (%) (4.56395… (%)) (A1) (G3)
[3 marks]

13b. [2 marks]

Markscheme
14000 × 66.91 (M1)
Note: Award (M1) for multiplying 14000 by 66.91.
936740 (INR) (A1) (G2)
Note: Answer must be given to the nearest whole number.
[2 marks]
13c. [3 marks]

Markscheme
5.2 12×5
936740 × (1 + 12×100
) (M1)(A1)(ft)
Note: Award (M1) for substitution into the compound interest formula,
(A1)(ft) for their correct substitution.
OR
N = 60
I% = 5.2
PV = ±936740
P/Y= 12
C/Y= 12 (A1)(M1)
Note: Award (A1) for C/Y = 12 seen, (M1) for all other correct entries.
OR
N=5
I% = 5.2
PV = ±936740
P/Y= 1
C/Y= 12 (A1)(M1)
Note: Award (A1) for C/Y = 12 seen, (M1) for all other correct entries
= 1214204 (INR) (A1)(ft) (G3)
Note: Follow through from part (b). Answer must be given to the nearest
whole number.
[3 marks]

13d. [3 marks]

Markscheme
1214204
67.16
(M1)
Note: Award (M1) for dividing their (c) by 67.16.
( 1214204
67.16
) − 17500 = 579 (USD) (M1)(A1)(ft) (G3)
Note: Award (M1) for finding the difference between their conversion and
17500. Answer must be given to the nearest whole number. Follow through
from part (c).
[3 marks]
14a. [3 marks]

Markscheme
* This question is from an exam for a previous syllabus, and may contain
minor differences in marking or structure.
150000 × 1.03520 (M1)(A1)
= $298468 A1

Note: Only accept answers to the nearest dollar. Accept $298469.

[3 marks]

14b. [3 marks]

Markscheme
attempt to look for a pattern by considering 1 year, 2 years etc (M1)
recognising a geometric series with first term P and common ratio 1.02
(M1)
EITHER
P + 1.02P + … + 1.0219 P (= P (1 + 1.02 + … + 1.0219 )) A1
OR
explicitly identify u1 = P , r = 1.02 and n = 20 (may be seen as S20 ). A1
THEN
(1.0220−1)P
s20 = (1.02−1)
AG

[3 marks]
14c. [3 marks]

Markscheme
24.297 … P = 298468 (M1)(A1)
P = 12284 A1

Note: Accept answers which round to 12284.

[3 marks]

14d. [3 marks]

Markscheme
METHOD 1
Q(1.028n ) = 5000(1 + 1.028 + 1.0282 + 1.0283 + … + 1.028n−1 ) M1A1
5000(1+1.028+1.0282+1.0283+...+1.028n−1)
Q= 1.028n
A1
5000 5000 5000
= 1.028
+ +…+ AG
1.0282 1.028n

METHOD 2
5000
the initial value of the first withdrawal is 1.028 A1

the initial value of the second withdrawal is 50002 R1

1.028
5000 5000
the investment required for these two withdrawals is 1.028 + R1
1.0282
5000 5000 5000
Q= 1.028
+ +…+ AG
1.0282 1.028n

[3 Marks]
14e. [3 marks]

Markscheme
5000
1.028
sum to infinity is 1 (M1)(A1)
1− 1.028

= 178571.428 …
so minimum amount is $178572 A1

Note: Accept answers which round to $178571 or $178572.

[3 Marks]
15a. [3 marks]

Markscheme
* This question is from an exam for a previous syllabus, and may contain
minor differences in marking or structure.
The first time an answer is not given to two decimal places the final
(A1) is not awarded.

(F V = 8000 × (1.0125)2×12 )
15 2×12
F V = 8000 × (1 + 100×12
) (M1)(A1)

OR
15 2×12
I = 8000 × (1 + 100×12
) − 8000 (M1)(A1)
Note: Award (M1) for substitution into compound interest formula, (A1) for
correct substitutions.
OR
N = 24
I% = 15
P V = −8000
P MT = 0
(F V = 10778.8084)
P /Y = 12
C/Y = 12 (A1)(M1)
Note: Award (A1) for C/Y = 12 seen, (M1) for all other correct entries.
F V = 10778.8084 need not be seen.
OR
N=2
I% = 15
P V = −8000
P MT = 0
(F V = 10778.8084)
P /Y = 1
C/Y = 12 (A1)(M1)
Note: Award (A1) for C/Y = 12 seen, (M1) for all other correct entries.
F V = 10778.8084 need not be seen.
interest = 2778.81 (A1) (C3)
Note: Final answer must be to two decimal places for the (A1) to be awarded.
 15b. [3 marks]

Markscheme
N=3
I% = 17
(P V = ±6243.705564)
P MT = 0
(F V = ∓10 000)
P /Y = 1
C/Y = 1 (A1)(M1)
Note: Award (A1) for F V = ∓10 000, (M1) for all other correct entries.
P V = ±6243.705564 need not be seen.
OR
17 3
10 000 = P V × (1 + 100
) (M1)(A1)
Note: Award (M1) for substituting into compound interest formula, (A1) for
equating 10 000 to the correctly substituted compounded interest formula.
(P V =) 6243.71 (A1) (C3)
Note: Answer must be to two decimal places.

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