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100
State the simple interest formula and identify all the variables.
I = PRN
I = interest
P = principal
R = rate
N = number of periods
100
Julia has been given a home loan of $400 000 at 8% p.a. compounded monthly. The loan is to be repaid in 300 equal monthly instalments of $3087.26.
a) Determine the amount to be repaid on this loan.
b) How much interest is paid on this loan? (BONUS 100)
a) $3087.26 x 300 months = $926178
b) $926178 - $400000 = 526178
100
How many colours are in the rainbow?
7
100
What is Miss Lam's favourite colour?
Yellow
100
Which planet is closest to the Sun?
Mercury
100
William takes out a flat-rate loan of $60 000 for a period of 5 years, at a simple interest rate of 12% per annum. Find the amount owing at the end of 5 years.
Hint: Find interest then add it to the principal
I = 60000 x 12% x 5 = 36000
Amount owing = P + I
= 60000 + 36000
=$96000
100
When did Miss Lam graduate high school?
2018
100
On which continent will you find the world's largest desert?
Antarctica
100
Riad takes out a $1234 loan and pays the bank $1200 in five years. How much interest did he pay?
I = FV - PV
= 1500 - 1234
= 266
100
Which actor plays Ken in the 2023 movie "Barbie"?
Ryan Gosling
100
Which powerful Mongol ruler conquered a vast empire stretching from Asia to Europe?
Genghis Khan
100
Samiul borrowed $590000 (P) to buy a house. For the first month, an interest of $3289 (I) was charged. She made a monthly repayment of $4521 (R). Find the balance of his loan after he has made his repayment.
P + I - R
590000 + 3289 - 4521=588768
100
State the compound interest formula and identify all the variables
FV = PV(1+r)n
FV = future value
FV = future value
PV = present value
r = rate
n = number of periods
100
What is the name of the baby pygmy hippo that when viral earlier this year?
Moo Deng
100
A single amount of $10 000 is invested for 4 years, earning interest at the rate of 12% per annum, compounded biannually. Find the future value.
FV = 10000(1+12%/2)4x2
= 15938.48
100
What is a credit card?
A credit card is a way to borrow money or get ‘credit’ from a bank. It’s a card with a set amount of funds (called a 'limit’) you can borrow at any time. This limit is set when you apply for a card.
100
A loan has a compound interest rate of 13% per annum, compounded daily. Find the daily interest rate correct to 5dp.
5%/365
= 0.00036
100
How many days are there between 23rd May to 20th June (inclusive)
31 days in May, 30 days in Jnne
31 - 23 + 1 + 20 = 29 days
100
Ashley's credit card statement is shown below:
Given that the interest is charged at 18.25% per annum, compounded daily from the purchase date (included) to the last day of the month (included),
a) Find the closing balance of the furniture
b) Find the interest charged for the furniture
a) Closing balance
FV = 3700 (1+18.25%/365)11
=3720.40
b) Interest = 3720.40 - 3700 = 20.40
100
Find the number of days between 14th June to 23rd August (inclusive)
30 days in June, 31 days in July, 31 days in August
30 - 14 + 1 + 31 + 23 = 71 days
100
Finish the lyrics: "You are my fire..."
The one desire
Believe when I say
I want it that way
100
Majd borrows $200 and is charged an interest of $50 each month. His monthly repayments are $20. Will Majd ever pay off his loan?
No because the repayments are lower than his interest.
100
Sarah's credit card has an interest free period of 55 days, starting on the 1st January. Sarah purchases a phone for $1200 on the 5th January. She pays off her phone on the 12th February. Does she have to pay interest on her phone?
Note: Interest is charged up to and including the date of payment.
Days between 1th Jan to 12th Feb (inclusive). The interest free period starts on the 1st Jan.
31 days in Jan, 28 days in Feb
31 + 12 = 43 days
So no because 43 is less than 55 days
100
What is the capital of India?
New Delhi
100
What is a reducing balance loan?
Reducing balance loans are calculated on the balance owing and not the initial amount borrowed. As payments are made, the balance owing is reduced and hence the interest charged is reduced