Definitions
Define: Shares
Unit ownership in a company
Increase $125 by 18%
$147.50
What is the simple interest formula?
I = (PrT)/100
What is the compound interest formula?
A=P(1+r/100)n
A plumber offers a 5% discount if his customers pay with cash. How much would a customer be charged if they paid in cash and the fee before the discount was $149?
$141.55
A portion of company earnings distributed to shareholders
Decrease $199 by 23.8%
$151.64
Calculate the amount of simple interest earned on an investment of $4450 that returns 12.5% per annum for 7 years
$3893.75
Use the compound interest formula to calculate the amount of interest on an investment of $4500 at 3.5% p.a. compounded annually for 5 years, correct to the nearest cent
$844.59
A car dealership offers its customers the option of purchasing a $13 500 car by paying $2500 up front, followed by 36 monthly payments of $360. What is the effective rate of interest for the time payment plan?
11.56%
Define: GST
Tax that is charged on most purchases
If the price of bananas was $2.65 per kg, calculate the percentage change (increase or decrease) if the price is now $3.75 (correct to 1 decimal place)
41.5%
Calculate the monthly repayments for a $74 500 loan that is charged simple interest at a rate of 5.45% p.a. for 25 years
$586.69
Use the compound interest formula to calculate the principal required, correct to the nearest cent, to have a final amount of $10 000 after compounding at a rate of 4.5% p.a. for 6 years.
$7678.96
Calculate the price-to-earnings ratio for a company whose current share price is $3.25 and has a dividend of 15 cents. Give your answer correct to 2 decimal places.
21.67
Define: Compound interest
Interest calculated on the changing value throughout the time period of a loan or investment. Interest is added to the balance before the next interest calculation is made
The price of a bottle of wine was originally $15.95. After it received an award for wine of the year, the price was increased by 15%. Twelve months later the price was reduced by 20%. What is the final price of a bottle of this wine?
$14.67
A savings account with a minimum monthly balance of $1800 earns $14.65 interest in a month. What is the annual rate of simple interest, (calculated to 2dp)?
9.77%
Use the compound interest formula to calculate the amount of interest accumulated on $2735 at 7.2% p.a. for 4 years if the compounding occurs monthly. Give your answer correct to the nearest cent.
$909.69
Calculate the amount of GST included in an item purchased for a total of $280.50.
$25.50
Define: Effective rate of interest
the rate of interest that takes into account the reducing balance owing after each payment has been made
An advertisement for bedroom furniture states that you save $54 off the recommended retail price when you buy it for $485. By what percentage has the price been reduced?
10%
A borrower has to pay 7.8% p.a. simple interest on a 6-year loan. If the total interest paid is $3744, how much was borrowed and what would the repayments be if they had to be paid monthly?
$8000 and $163.11 per week
A parking fine that was originally $165 requires the payment of an additional late fee of $35. If the fine was paid 14 days late and interest had been compounding daily, what was the annual rate of interest being charged?
505%
Calculate the dividend payable for a company with 2 500 000 shares when $525 000 of its annual profit is distributed to the shareholders?
$0.21