1 Compound Interest Outcomes Solve problems about compound
1 Compound Interest – Outcomes Solve problems about compound interest. Solve problems about appreciation and depreciation.
2 Solve Problems about Interest
3 Solve Problems about Interest
4 Solve Problems about Interest e. g. € 5 000 is put in a savings account with a 2% interest rate per annum / per year. i. How much money is in the account after two years?
5 Solve Problems about Interest e. g. € 5 000 is put in a savings account with a 2% interest rate per annum / per year. i. How much money is in the account after three years?
6 Solve Problems about Interest In each of the following, find the final value and total interest of the investment: € Principal € 2 000 € 6 500 € 9 000 Interest Rate 5% 4% 6% Time 3 2 3 € 15 400 € 24 000 3% 4. 5% 2 3 Final Value Interest
7 Solve Problems about Interest e. g. A company takes out a loan to buy equipment. The loan terms are 4% per annum for three years. The company pays back a total of € 14 342. What was the value of the initial loan?
8 Solve Problems about Interest
9 2014(S) OL P 1 Q 2 Solve Problems about Interest a) A sum of € 5 000 is invested in an eight-year government bond with an annual equivalent rate (AER) of 6%. Find the value of the investment when it matures in eight years’ time. b) A different bond gives 20% interest after 8 years. Calculate the AER for this bond. 2003 OL P 1 Q 1 What sum of money invested at 6% per annum compound interest will amount to € 5 000 in 7 years? Give your answer correct to the nearest euro.
10 Solve Problems about Interest 2007 OL P 1 Q 1 € 8 500 was invested for 2 years at compound interest. a) The rate of interest for the first year was 4%. Find the amount of the investment at the end of the first year. b) The amount of the investment at the end of the second year was € 9 237. 80. Find the rate of interest for the second year.
11 Solve Problems about Ap/Depreciation
12 Solve Problems about Ap/Depreciation e. g. A house in Dublin cost € 200 000 in 2002. It appreciated in value by 3% each year. How much was it worth in 2007? e. g. In mid-January 2017, 1 bitcoin was worth $828. 89. 1 bitcoin was valued at $19 200. 67 in mid-December. Calculate its average monthly appreciation correct to two decimal places. e. g. In response to the financial crisis of the late 00 s, the government introduced National Solidarity Bonds. Currently, a 10 year savings bond nets 16% tax free at the end of 10 years. What is the annual earnings rate (AER) on a 10 year bond?
13 Solve Problems about Ap/Depreciation e. g. A car is bought for € 12 000. If it decreases in value by 1% per month, how much is it worth after one year? e. g. A 16 GB i. Phone 6 cost $100 on amazon in January 2018. In January 2015, the same phone cost $649. What was the annual depreciation rate? e. g. In mid-January 2018, 1 bitcoin was worth $19 200. 67. As of mid-March, 1 bitcoin was worth $8 309. 74. What was the monthly depreciation rate on bitcoin over this period?
14 Solve Problems about Ap/Depreciation 2017 OL P 1 Q 1 A new machine is bought for € 30 000. Its value depreciates by 15% each year for five years. Find the value of the machine at the end of the five years. 2014 OL P 1 Q 7 Mary bought a new car for € 20 000 on the 1 st July 2010. The value of the car depreciated at a compound rate of 15% each year. Find the value of the car, correct to the nearest euro, on the 1 st July 2014.
- Slides: 14