Dr. Du Education Homework Year 10 (A1) Mathematics Consumer Arithmetic Name:. Class: Week: Term: Year: Attempt Mark | Accuracy Mark | Marker Initials ILearning is the beginning of wealth. Learning is the beginning of health. Learning is the beginning of spirituality. Searching and learning is where the miracle process all begins. Version 6Year 10 (A1) Mathematics Consumer Arithmetic [Exercise 1 Level 1 Question 1 A sum of $10,000 is placed in a bank account and earns 12% interest per annum, compounded annually. How much money is in the account at the end of 6 years, just after the final interest has been paid? Give your answer to 2 decimal places. Question 2 $12,500 is invested at a compound interest rate of 9% p.a. Interest however is compounded monthly. Caleulate the amount to which the investment will grow in 4 years to 2 decimal places. Question 3 Diana invests $1,000 at 8% per year compound interest, compounded quarterly, Calculate the value of the investment after 5 years to 2 decimal places. Question 4 Consider what happens when $40,000 is invested for 4 years at 15% p.a. compound interest. Find the total amount of interest earned. Question Jack’s bank charges 22.5% p.a. interest, compounded daily, on outstanding amounts on credit cards. How much interest is Jack charged if he has $135.40 outstanding for 18 days assuming there are 365 days in a year? A.S151 B. $5.49 C. $15.02 D. $54.84 ©Daily Progress 1 Version 6Year 10 (A1) Mathematics Consumer Arithmetic Question 6 The final value of an investment, after ten years earning 15% per annum, compounded yearly, was $32,364, Find the amount invested, correct to the nearest dollar. Question 7 ‘What sum of money must I invest today at 6% p.a. compounded monthly which will amount to $20,000 in 10 years time? Level 2 Question 1 Joanna's grandmother invested $100 fifty years ago at a fixed rate compounded annually. The investment has now grown to $2,330.67. What rate of interest per annum is being paid to 1 decimal place? Question 2 Twinkle Finance offers its investors the opportunity to have interest credited to their investment “as often as you wish”. Naturally, many investors decide for the “EVERY MINUTE” plan in which Twinkle offers 12% P.a., compounded each minute. (a) Tanya invests $1000 for a year with Twinkle on the “EVERY MINUTE” plan. Theoretically, Twinkle’s computers multiply Tanya’s balance by approximately 1.000 000 228 every minute. Show why this is so. (b) How much, to the nearest dollar, is Tanya’s investment worth after 1 year? Daily Progress 2 Version 6Year 10 (A1) Mathematics Question 3 A regular amount is paid into an account each year and the investment is compounded annually. The table shows the expected amount in the account at the end of a number of years up to five, when $1 is regularly invested each year. Compounding rate of interest is 6% pa. Consumer Arithmetic Year Payment Start of Year Interest. | End of Year 1 $1.00 $1.00 $0.06 $1.06 2 $1.00 $2.06 $0.12 $2.18 3 $1.00 $3.18 $0.19 A . $1.00 B cl $4.63 2 $1.00 $5.63 $0.34 $5.97 (a) Calculate the missing amounts A, B, and C. (b) If Lisa’s annual payment was $500 and the interest remained at 6% pa, calculate the amount in the account at the end of two years by using the table, Question 4 Each year I must pay 30% tax on any money eared by my investments. I have $6000 in a bank account which pays 10% p.a. interest. Hence I must pay tax on this interest. (a) How much will my investment be worth, just after I have paid the fourth lot of tax? ©Daily Progress 3 Version 6Year 10 (A1) Mathematics met (b) How much would my investment be worth at the end of 4 years, ifI didn’t pay tax, but interest of 7% p.a. was eared? Question S ‘A man invests $1,000 for 3 years at 10% per annum simple interest. How much greater would his return have been if the money had been invested at 10% per annum compound interest, compounded annually, for the same period? ASO B. $10 C.$20 D. $21 E. $31 Question 6 An investment of $2,000 is made. (a) Calculate the value of the investment after 3 years if the interest of 4.8% p.a. is compounded annually to 2 decimal places. (b) What is the difference if the interest is compounded monthly? Give your answer to 2 decimal places. Question 7 I deposited $600 in an account which pays 1% interest per month. Two months later, I deposited another $600 in the same account. How much would be in the account after a further two months? Give your answer to 2 decimal places. Daily Progress 4 Version 6Year 10 (A1) Mathematics Consumer Arithmetic Exercise 2 Level 1 Question 1 A block of land has increased in value by 20% of the previous year’s value in each of the last 4 years. If its value 4 years ago was $200,000, what is its value now? Question 2 The population of a northern NSW town is currently 3850 and is estimated to grow at the rate of 2.5% p.a. compounded yearly. What will be its population in 8 years’ time? Give your answer to the nearest whole number. Question 3 A painting valued at $5,000 increases in value for three years at 10% p.a. Calculate its final value to the nearest dollar. Question 4 ‘The girth of a tree increases by 15% each year. When first measured its girth was 62 em. Find its girth after 8 years correct to 2 significant figures. Question $ The value of a house in a Sydney suburb appreciates at 8% p.a, (compounding annually) for 5 years. If its current value is $650,000, what was its original value? Give your answer to 2 decimal places. Question 6 ‘Anew plasma TV depreciates by 25% per year. IF it costs $1,900 new, what will the TV be worth in five years? Give your answer to 2 decimal places. ©Daily Progress 5 Version 6Year 10 (A1) Mathematics Consumer Arithmetic Question 7 ‘A machinery valued at $230,000 depreciates at a rate of 12% p.a. (a) Find-the value of the machinery after 4 years to the nearest cent. (b) By how much has the machinery depreciated over these 4 years? Give answer to nearest dollar. Question 8 If the population of Bilby Downs is decreasing by 20% of its population every year, what would be the population in 2 years if it is now 800? Question 9 A new computer depreciates by 30% per year. If it costs $4,000 new, what will it be worth in 3 years? Level 2 Question 1 Each year, my pocket money is increased by 20%. This year I receive $40 per week. What will I receive, per week, (a) next year? (b) the year after next? ©Daily Progress 6 Version 6Year 10 (A1) Mathematics Consumer Arithmetic (© the year after that? Question 2 Connor bought a new car costing $19,600. The value of the car depreciates by 15% of the new price in its first year and at 12.5% of the previous year’s value in each succeeding year. What is the value of the car after 8 years to the nearest $10? Question 3 A library depreciates at a rate of 12 ; % p.a. for 8 years. If the books are now worth $20000, what was the original value? Question 4 Jenny and Lillian each invested $5,000. Lillian’s investment depreciated at a rate of 3% p.a. for 3 years, while during that time Jenny’s investment grew at a rate of 9% p.a. (compounded yearly). Find the difference in the value of their investments at the end of the 3 years. Question 5 Which is worth the least amount after depreciation? A $1,000 item depreciating at 12% p.a. for 2 years or depreciating at 1.5% per month for 2 years? What is the difference in the amount? Give your answer to the nearest cent. ODaily Progress 7 Version 6Year 10(A1) Mathematics Consumer Arithmetic Question 6 What is the equivalent flat rate to a 3-year loan at 16% p.a, compound quarterly without repayments within the 3 years? Question 7 (a) Calculate the amount of compound interest earned on $2000 at 6% p.a. over 5 years. (b) What would be the simple interest rate needed to eam the same amount of interest on the $2000 over 5 years. This is referred to as the flat rate of interest. Question 8 The value of an investment property increased from $440000 to $750000 in 8 years. Assuming it increased. annually at a constant compound interest rate, find its rate to 1 d.p. Question 9 Sue’s notebook was purchased for $3500. After it depreciated at a constant rate for 5 years it is now worth $1000. Find its rate of depreciation (correct to 1 d.p.) ©Daily Progress 8 Version 6Exercise 3 (Al) Mathematics Rate Conversion Table Conversion Table from Reducible Rates to Equivalent Flat Rates (for equal monthly instalments i.e. interest compounded monthly) Question 1 ‘Annual Monthly Equivalent Annual Flat Rate (correct to 2 decimal places) Reducible | Reducible (For monthly rate, divide annual rate by 12) Rate Rate Over 2 years | Over 5 years | Over 10 years | Over 20 years 12% (0.12) 1% 6.49% 6.69% 7.22% 8.21% 14% (0.14) | 1.16% 7.62% 7.92% 8.63% 9.92% 16% (0.16) 13% 8.76% 9.18% 10.10% 11.70% 18% (0.18) 1.5% | 9.91% 10.47% 11.62% 13.52% 20% (0.2) 1.6% 11.07% 11.79% 13.19% 15.39% 22% (0.22) 1.83% 12.25% 13.14% 14.80% 17.28% 24% (0.24) 2% 13.45% 14.52% 16.46% 19.21% 26% (0.26) | 2.16% 14.65% 15.93% 18.15% 21.15% Level Cathy wants to buy a fridge and freezer set advertised at $1,925. She agrees to pay on terms of a 15% deposit, plus $128.67 per month for 16 months. (a) How much does the fridge and freezer set cost Cathy in total by paying on terms? (b) How much interest does she pay over the 16 months? (©) What is the equivalent annual percentage of interest charged on the $1925 correct to 1 decimal place? ©Daily Progress Version 6Year 10 (A1) Mathematics Consumer Arithmetic Question 2 Jenny bought a stereo valued at $1 500. She paid all of this by equal monthly instalments over 3 years. The simple interest was 6.5% p.a. Find: (a) The total interest to be paid; (b) Her monthly repayment required to repay the loan plus interest. Question 3 Find the size of each monthly repayment (to nearest dollar) on a loan of $35800 taken at a rate of 14% p.a. reducible, over 20 years. Question 4 A computer priced at $3900 is purchased with a 5% deposit and the balance paid off over 3 years by equal monthly payments at a simple interest rate of 5.6% p.a. Find each monthly payment. Question 5 Francine intends on buying a lounge suite priced at $3750, She has three payment options. Calculate how much is paid under each option. (a) Pay cash and receive a 10% discount. (b) Pay $1000 deposit and 12 monthly instalments of $124. (©) Purchase it on finance with no deposit and simple interest of 9.5% p.a. over a two year period. ©Daily Progress 10 Version 6Year 10 (A1) Mathematics Consumer Arithmetic Question 6 A car is bought for $24000 on a deposit of $4000. (a) How much is left to pay off? (b) If the loan plus interest of $5400 is to be repaid in 60 equal monthly instalments, how much is each instalment? (©) Other costs to run the car are as follows: Petrol of $30 per week, servicing (3 per year) at 128.70 each, tyres at $74 per year, insurance of $456 per year, oil at $1.50 per week, registration of $500 per year. Calculate the amount required each month to cover these extra costs. Level 2 Question 1 The table of conversion from flat interest rate to reducing balance interest rate is based on the formula (1+ RY" (nR=1) +1 ~ n(+R)"=n number of monthly payments. To get the monthly rate, divide the annual rate by 12. Calculate the approximate flat interest rate for 10 years for the reducible rate of 8.5% p.a. , where F is the flat rate per month, & is the reducible rate per month and nis the Question 2 Which of the following is the lower interest rate (over 10 years with instalments)? (a) 18% p.a, reducible or 12% p.a. flat. (b) 12% p.a. reducible or 7% p.a. flat. Daily Progress 1 Version 6Year 10 (A1) Mathematics Consumer Arithmetic (©) 22% paa. reducible or 15% p.a. flat. (@) 14% p.a, reducible or 8% p.a. flat. Question 3 The Hollier family wished to borrow $12,000 for a new car. After being told that to receive a loan they must pay for insurance, an establishment fee, a registration and handling fee and government load duty, they began to ask more questions. They discovered that the interest rate was 11.75% p.a. flat and that the loan ‘would be repaid in monthly instalments over 5 years. (a) What amount would be paid each month? (b) Find the equivalent reducible rate to the nearest whole percent. Question 4 Nabil has a home loan of $240000 with a bank at 12% p.a. reducible for 20 years. However, he intends to pay it off in 10 years. What savings does he make? Question 5 Compare the cost of borrowing $28 000 at 16% p.a. reducible and 16% p.a. flat over 5 years, if equal monthly repayments are made during that time. How much more must you pay at 16% p.a. flat than at 16% p.a. reducible? Question 6 A man bought a car for $8250 paying a deposit of $250, $130 in extra charges, and paying $280 per month over five years (a) How much would he have to pay altogether? (b) After paying four payments he finds it too expensive. The car is repossessed and sold for $6400. The finance company then sent him a bill for $1066.70 being the difference between what he owed and what they received for the car. He paid the bill and had no car. How much money had he paid altogether? ©Daily Progress 12 Version 6Year 10 (A1) Mathematics Consumer Arithmetic Optional Challenging Questions Show me someone who has done something worthwhile, and T’ll show you someone who has overcome adversity. Exercise 1 Level 3 Question 1* A boy has $20,000 in a trust fund, Each year, the amount in the fund increases by 12% due to interest, and the fund pays the boy $3,000 each year to be used as part of his school fees. How much will be in the fund after the boy receives the third payment of $3,000? Answer to the nearest dollar. Question 2* I deposited $400 in a bank account which pays 12% per annum, compounded monthly. Two months later, I deposited $600 in this account and after another two months after that, I deposited $800 in the account. (a) How much would I have in the account, 6 months after the original deposit? (b) If I had deposited the $800 first, then the $600 and then the $400, again at two monthly intervals, what would be in the account 6 months after the original deposit? ©baily Progress B Version 6Year 10 (A1) Mathematics Consumer Arithmetic Question 3* Michael inyested a sum of money $P on January Ist, 1975. The account received interest, which was compounded annually. On January Ist, 1985 there was $44,771.20 in the account and on January 1st 2005 the amount of money in the account had grown to $143,587.28. (Suiney Grammar) (a) Find the rate of interest that Michael received on his investment. Give your answer correct to the nearest whole percent per annum. (b) Find the amount $P that Michael invested in 1975? (©) In what year will the account have more than $250 000 in it? Exercise 2 Level 3 Question 1* Due to evaporation, the number of litres in a reservoir decreases by 16% each month. At present there are 416 000L in the reservoir. How many litres of water must be added to bring the volume back to where it was 4 months ago? Answer to 3 significant figures. ©Daily Progress 14 Version 6Year 10 (A) Mathematics Consumer Arithmetic Question 2* If the value of a gold coin increased by 20% each year, find the percentage increase of the coin over three years. Question 3* My car depreciated by 30% in the first year and 35% in the second. At the end of the second year, it was worth $8400, What must it have been worth when I bought it? Answer to the nearest dollar. Exercise 3 Level 3 Question 1* Five years ago, Jocelyn bought a car worth $20000. Jocelyn had to borrow the whole $20000 from the credit union, at a flat rate of 7.3% p.a., to be repaid in equal monthly instalments over those five years. (a) The car has since depreciated at the rate of 25% p.a. What is its current value, rounded to the nearest dollar? (b) How much has she paid in total to the credit union for her car? (©) What was the size of her monthly instalment to the credit union? ©Daily Progress 15 Version 6Year 10 (A1) Mathematics Consumer Arithmetic (@) Using your answers to the first 2 parts, how much more has she paid for the car than it is worth now? Question 2* Each month, the size of a debt increases by 1.5% due to interest. At the end of each month, after this increase, a repayment of $1400 is made. Initially, the debt was $80 000. (a) Find the size of the debt after the first payment has been made. (b) Find the size of the debt after the third payment has been made. Question 3* John and Jane Citizen are planning to buy a home unit to live in after their marriage. By the time they were married John had $12,500 in savings while Jane had saved $14,500. The bank advised that they needed to have a deposit of $80,000 before they would give them a loan of $300,000 based on their current salaries. ‘They both worked and were able to save at the rate of $1,600 per month. (a) At the time of their marriage what was their total savings? (b) How many months did it take them to save for the required deposit? (©) What was the price of the unit? (d) If the loan was 6.55% p.a. flat rate over 20 years, find their monthly repayments. (©) Supposing the loan application fee was $650, legal fees $1,800, pest and building inspections $675, stamp duty was 2% of the contract price, building and content insurance $926, what was the total set-up cost before they moved into their unit? Daily Progress 16 Version 6Year 10 (A1) Math [Answers [Exercise Level 1 Question 1 $19738.23 Question 2.$17892.57 Question 3. $1485.95 Question 4 $29960.25 Question 5 (A) Question 6 $8000 Question 7 $10992.66 Level 2 Question 1 6.5% pa Question 2 (a) Proof (b) $1127 Question 3 (a) $3.37; $4.37; $0.26 (b) $1090 Question 4 (a) $7864.78 (b) $7864.78 Question 5 E Question 6 (a) $2302.05 (b) $7.06 Question 7 $1236.42 Level 3 Question 1* $17975 Question 2* (a) $1865.05 (b) $1881.62 Question 3* (a) 6% paa. (b) $25000 (©) 2015 Exercise 2 = Level 1 Question 1 $414720 Question 2 4690 Question 3 $6655 Question 4 190 em (2 s.f) Question 5 $442379.08 Question 6 $450.88 Question 7 (a) $137929.93 (b) $92070 Question 8 512 Question 9 $1372 ©Daily Progress Question 1 (a) $48 (b) $57.60 (©) $69.12 Question 2 $6540 Question 3 $58205.71 Question 4 $1911.78 Question 5 1.5% pam, $78.62 Question 6 20% paa. Question 7 (a) $676.45 (b) 6.76% Question 8 6.9% pa. Question 9 22.2% (Idp) Level 3 Question 1* 420000L Question 2* 72.8% Question 3* $18462 Exercise 3 Level 1 Question 1 (a) $2347.47 (b) $422.47 (©) 16.5% p.a. Question 2 (a) $292.50 (b) $49.79 Question 3 $445 Question 4 17 Consumer Arithmetic $120.21 Question 5 (a) $3375 (b) $2488 (©) $4462.50 Question 6 (a) $20000 (b) $423.33 (©) $254.51 Level 2 Question 1 4.88% p.a. (2dp) Question 2 (a) 18% p.a. reducible (b) 7% p.a. flat (©) 22% pa. reducible (@) 8% pa, flat Question 3 (a) $317.50 (b) 20% pa. Question 4 $220800 Question 5 $9548 Question 6 (a) $17180 (b) $2566.70 Level 3 Question 1* (a) $4746 (by $27300 (©) $455. (a) $2554 Question 2* (a) $7980 (b) $79390.96 Question 3* (a) $27000 (b) 34 months (©) $380000 (@ $2887.50 (©) $11651 Version 6Level 8, 11-15 Deane St, Burwood Phone: 9715 2622 Level 5, 288 Forest Rd, Hurstville Phone: 9586 3969 fl io www.drdueducation.com.au Email: office@drdueducation.com.au Office Hours: Monday to Sunday: 10am — 6.30pm, Version 6