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Financial Maths, STD2 F4 2019 HSC 27

Ashley has a credit card with the following conditions:

  • There is no interest-free period.
  • Interest is charged at the end of each month at 18.25% per annum, compounding daily, from the purchase date (included) to the last day of the month (included).

Ashley's credit card statement for April is shown, with some figures missing.

The minimum payment is calculated as 2% of the closing balance on 30 April.

Calculate the minimum payment.   (3 marks)

Show Answers Only

`$74.41`

Show Worked Solution

`text(Daily interest)= 18.25/(100 xx 365)= 0.0005`

♦ Mean mark 39%.

`text(Closing balance)= 3700(1.0005)^11= 3720.40`
  

`:.\ text(Minimum payment)` `= 3720.40 xx 0.02`
  `= $74.408…= $74.41\ \ text{(nearest cent)}`

Financial Maths, STD2 F4 2006* HSC 25b

In June, Ms Bigspender received a statement for her credit card account.

The account has no interest-free period. Compound interest is calculated daily and charged to her account on the statement date.
 

  1. For how many days is she charged interest on her purchase?   (1 mark)

  2. Calculate the interest charged to her account.   (2 marks)

Show Answers Only

 a.    `29`

 b.    `$8.98`

Show Worked Solution

a.    `text(# Days interest charged)`

`=\ text{9 (in May) + 20 (in June)}= 29`

 

b.    `text(Daily interest rate)\ (r) = 0.0498/100=0.000498`

`text(Closing Balance)\ (FV)` `= PV(1+r)^n`
  `= 617.72(1.000498)^29= $626.703`

  
`:.\ text(Interest charged)=626.70-617.72=$8.98`

Financial Maths, STD2 F4 2010* HSC 22 MC

In July, Ms Alott received a statement for her credit card account. The account has no interest free period. Compound interest is calculated daily and charged to her account on the statement date.
 

2010 22 mc

What is the minimum payment due on this account? 

  1. $23.56
  2. $25.00
  3. $86.08
  4. $87.20
Show Answers Only

`D`

Show Worked Solution

`text(Days of interest)\ (n) =2+23=25`

♦♦♦ Mean mark 20%. Lowest scoring MC question in the 2010 exam.

`text(Daily interest rate)\ (r) = 0.0521/100 = 0.000521`

`text(Closing Balance)\ (FV)` `=PV(1+r)^n`
  `=1721.50 (1.000521)^25=$1744.06`

  
`text(5% of closing balance)=5/100xx1744.06=87.20\ text{(nearest cent)}`
   

`text(S)text(ince)\ $87.20>$25\ , text(minimum payment)=$87.20`
  

`=>D`