Aussie Maths & Science Teachers: Save your time with SmarterEd
Alex and Jun each invest $1800 for 5 years.
By calculating the interest earned over the 5 years, determine who will have the greater amount. (3 marks)
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Three years ago, the price of a uniform was $180.
Due to inflation, the price increased annually by 2.5%.
What is the price of this uniform now?
An artwork is currently valued at $ 15000. It appreciates at a rate of 5.3% per annum.
What will the value of the artwork be in 8 years time? (2 marks)
An amount of $12 000 is invested in an account that pays 1 % interest per quarter, compounding quarterly for five years.
What is the future value of this investment? (3 marks)
A watch is currently worth $6100. It has appreciated by 5.8% per annum since purchase.
What was its value 10 years ago? (2 marks)
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In ten years, the future value of an investment will be $150 000. The interest rate is 4% per annum, compounded half-yearly.
Which equation will give the present value
It costs $2.45 for a car to travel on a toll road. Due to inflation, the cost is to increase by 3% each year.
How much will it cost for a car to travel on the toll road in 5 years time? (2 marks)
Peter currently earns $21.50 per hour. His hourly wage will increase by 2.1% compounded each year for the next four years.
What will his hourly wage be after four years?
Taro needs $1000 in 5 years time. He is going to invest some money today in an account earning 3% per annum compounded annually. He will make no further deposits or withdrawals.
How much money does he need to invest today? (3 marks)
Joan invests $200. She earns interest at 3% per annum, compounded monthly.
What is the future value of Joan's investment after 1.5 years?
The inflation rate over the year from January 2019 to January 2020 was 2%.
The cost of a school jumper in January 2020 was $122.
Calculate the cost of the jumper in January 2019 assuming that the only change in the cost of the jumper was due to inflation. (2 marks)
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A bank offers two different savings accounts.
Account
Account
The table displays the future values of $20 000 invested in each account for the first 2 years.
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Heidi’s funds in a superannuation scheme have a future value of $740 000 in 20 years time. The interest rate is 4% per annum and earnings are calculated six-monthly.
What single amount could be invested now to produce the same result over the same period of time at the same interest rate? (3 marks)
A single amount of $10 000 is invested for 4 years, earning interest at the rate of 3% per annum, compounded monthly.
Which expression will give the future value of the investment?
A family currently pays $320 for some groceries.
Assuming a constant annual inflation rate of 2.9%, calculate how much would be paid for the same groceries in 5 years’ time. (2 marks)
What amount must be invested now at 4% per annum, compounded quarterly, so that in five years it will have grown to $60 000?
Chandra and Sascha plan to have $20 000 in an investment account in 15 years time for their grandchild’s university fees.
The interest rate for the investment account will be fixed at 3% per annum compounded monthly.
Calculate the amount that they will need to deposit into the account now in order to achieve their plan. (3 marks)
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A house was purchased in 1984 for $35 000. Assume that the value of the house has increased by 3% per annum since then.
Which expression gives the value of the house in 2009?