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Financial Maths, STD2 F4 2024 HSC 21

William has a reducing balance loan on which he owes $5590. He makes monthly repayments of $110.

The loan company charges interest at 24% per annum, compounded monthly.

The spreadsheet shows some of the information for the next two months of the loan.

  1. Complete the entries in the spreadsheet to show the balance owing on the loan at the end of two months.   (2 marks)
     


  1. Explain why the loan will never be repaid if William continues to make repayments of $110 per month.   (1 mark)

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a.
       

b.   

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a.
       


 

b.   

Financial Maths, STD2 F4 2022 HSC 36

Frankie borrows $200 000 from a bank. The loan is to be repaid over 23 years at a rate of 7.2% per annum, compounded monthly. The repayments have been set at $1485 per month.

The interest charged and the balance owing for the first three months of the loan are shown in the spreadsheet below.
 

  1. What are the values of and ?  (2 marks)
  2. After 50 months of repaying the loan, Frankie decides to make a lump sum payment of $ 40 000 and to continue making the monthly repayments of $1485. The loan will then be fully repaid after a further 146 monthly repayments.
  3. How much less will Frankie pay overall by making the lump sum payment?  (3 marks)
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a.   

 
   

 

 
   
   

 

b.   


 


 


♦♦♦ Mean mark (b) 17%.
 

Financial Maths, STD2 F4 2016 HSC 27d

Marge borrowed $19 000 to buy a used car. Interest on the loan was charged at 4.8% pa at the end of each month. She made a repayment of $436 at the end of every month. The table below sets out her monthly repayment schedule for the first four months of the loan. 
 

2ug-2016-hsc-q27_1

  1. Some values in the table are missing. Write down the values for and .  (2 marks)

  2. Calculate the value of .  (2 marks)

  3. Marge repaid this loan over four years.

     

    What is the total amount that Marge repaid?  (1 mark)

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i.   
 

 

 

ii.   

 
♦♦ Mean mark part (iii) 28%.
COMMENT: Read carefully whether total paid or total interest paid is required.

 

iii.   

Financial Maths, STD2 F4 2009 HSC 26c

Margaret borrowed $300 000 to buy an apartment. The interest rate is 6% per annum, compounded monthly. The repayments were set by the bank at $2200 per month for 20 years.

The loan balance sheet shows the interest charged and the balance owing for the first month.

2009 26c 

  1. What is the total amount that is to be paid for this loan over the 20 years?    (1 mark)

  2. Find the values of and .     (2 marks)

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♦ Mean mark 39%
MARKER’S COMMENT: 1 mark allocation flags the answer should not be too involved.

i.   

 

 

ii.