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Financial Maths, STD1 F2 2023 HSC 24

Bobby invested $5000.

The table shows the progress of his investment over the first 4 months.

 

  1. What are the values of \(A\) and \(B\)?  (2 marks)

  2. Bobby could have earned simple interest on the investment at 0.62% per month.
  3. How much interest would Bobby have earned over 4 months by choosing this option?  (2 marks)

Show Answers Only

a.    \(A=$30.54,\ \ B=$5121.08\)

b.    \($124\)

Show Worked Solution

a.    \(A\) \(=5090.54\times\dfrac{0.6}{100}\)
    \(=$30.54\text{ (2 d.p.)}\)
     
  \(B\) \(=5090.54+30.54\)
    \(=$5121.08\)

b.    \(P=$5000,\ \ r=\dfrac{0.62}{100},\ \ n=4\)

\(I\) \(=Prn\)
  \(=5000\times \dfrac{0.62}{100}\times 4\)
  \(=$124\)


♦♦ Mean mark (b) 31%.