SmarterEd

Aussie Maths & Science Teachers: Save your time with SmarterEd

  • Login
  • Get Help
  • About

Financial Maths, STD2 F5 2016 HSC 28d

The table gives the contribution per period for an annuity with a future value of $1 at different interest rates and different periods of time. 
 

2ug-2016-hsc-q28_31
 

Margaret needs to save $75 000 over 6 years for a deposit on a new apartment. She makes regular quarterly contributions into an investment account which pays interest at 3% pa.

How much will Margaret need to contribute each quarter to reach her savings goal?  (2 marks)

--- 4 WORK AREA LINES (style=lined) ---

Show Answers Only

`$2865`

Show Worked Solution

`text(Periods) = 6 xx 4 = 24`

♦ Mean mark 40%.

`text(Interest rate) = 1/4 xx 3 = 0.75text(%)`

`=>\ text(Table factor = 0.0382)`

`(text(i.e. 3.82 cents contributed per)`

  `text(quarter = $1 after 6 years))`

 

`:.\ text(Quarterly contribution)`

`= 75\ 000 xx 0.0382`

`= $2865`

Filed Under: F5 Annuities (Y12), FM5 - Annuities and Loan repayments, Modelling Investments and Loans (Y12) Tagged With: Band 5, common-content, smc-1002-60-Other Annuity Tables, smc-816-30-Other Annuity Tables

Copyright © 2014–2025 SmarterEd.com.au · Log in