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Maths
Chapter 8
Growth +2
Decay -2
Simple Interest
OR
nth term rule:
Investment/Loan
+D
n is in terms of years
Flat rate depreciation - D
n is in terms of years
Unit cost depreciation- D
n is in terms of units of
cost
Interest = Vn - V0
Answer: B
91% answered correctly
Answer: E
67% answered correctly
Answer: C
68% answered correctly
Compound Interest
Recurrence Model
OR
nth term rule:
R > 1, Growth
R < 1, Decay
Compound Interest
Investment/Loan, R = 1 + r/100
Answer: A
37% answered correctly
Answer: D
42% answered correctly
eff (r, n)
Chapter 9
Interest accumulates
PLUS regular
repayments*
Chapter 9
Amortisation Tables
Answers
Q21: B
Q22: E
SO IMPORTANT:
Money is NEGATIVE (-)
Bank
Answer: B
27% answered correctly
Annuity
V0 = initial, Vn+1 = RVn - D
Perpetuity
D = r/100 x V0
Opposite to an interest only loan
Invest money and only the interest is withdrawn
Therefore, the amount accumulated each month
because of R is equal to D
A perpetuity will never end
Usually a question relating to this is about scholarships
or annual rewards or someone winning the lottery
Answer: D
68% answered correctly
Answer: E
23% answered correctly
Annuity Investment
V0 = initial, Vn+1 = RVn + D
Q24: C
Answers 2007