Networks
Financial Models
Loans & Annuities
Graph Types
Mixed Skills
100

What is the name of the table used to show which vertices are connected?

Adjacency matrix

100
A savings account has regular deposits added it each month. Which model does this represent

Future Value

100

Convert 7.3% compounded monthly to a monthly interest rate 

0.6083%

100

A graph has every vertex with an even degree.
What type of graph could it be?

Eulerian

100

Compound Interest
Future Value
Present Value
Which involves regular repayments?

Present Value 

200

A graph has
8 vertices
12 edges.
What is the degree of Vertex A if four edges are connected to it?

Ans:4

200

Single lump sum investment.
No additional deposits.
Which model?

Compound Interest

200

If a loan is taken out over 8 years. How many monthly repayments will this be?

96 payments

200

How many vertices of odd degree does a Semi-Eulerian graph have?

Exactly 2 

200

True or False
A graph can be weighted and directed.

True

300

True or False
The adjacency matrix for an undirected graph is symmetrical.

TRUE

300

A home loan required regular repayments. Which model would you use. 

Present Value

300

A bank advertises two investments accounts
A: 5.8% p.a. compounded annually
B: 5.7% p.a. compounded monthly
A student says that option A is better because it has the higher advertised interest rate. Is the student's reasoning valid?

Not necessarily valid, you will need to look at the effective annual rate. 

300

Which type of path visits every vertex exactly once?

Hamiltonian Path

300

A person deposits $250 each month into a savings account.
Which financial model should they use?

Future Value Annuity

400

Name two features of a weighted graph.

  • edges have weights
  • weights represent cost
  • weights represent distance
  • weights represent time
400
A withdrawal is made from you superannuation account. Which model does this represent? 

Present Value

400

A principal of $14 000 is invested and will earn compound interest at the rate of 2.8% per annum, compounding weekly. The effective annual rate of interest for this investment is closest to:
A 2.80%
B 2.81%
C 2.82%
D 2.83%
E 2.84%

Ans: E

400

Which type of graph travels every edge exactly once and finishes where it started?

Eulerian Graph (or Eulerian Circuit) 

400

A student begins solving a question using Future Value Annuity, but the question is about a car loan.
Identify the mistake and explain what model should have been used.

The student selected the wrong financial model.
A car loan involves borrowing money and making regular repayments, so Present Value Annuity should be used.

500

Explain the difference between a weighted graph and an unweighted graph.

The main difference is that a weighted graph assigns a specific number, or weight, to each edge, while an unweighted graph treats all edges as equal

500

Explain why a car loan uses a Present Value Annuity

Regular repayments

500

Ian borrows $4000 from a bank. The bank will charge him interest at the annual rate of 9.8%.
Construct a recurrence relation model for the value of Ian's loan after n years.

A_0 = 4000, A_n+1 = 1.098 × A_n

500

A student says:
"A Hamiltonian graph must use every edge exactly once."
Is the student correct? Explain.

No
A Hamiltonian graph is concerned with visiting every vertex exactly once (returning to the start for a Hamiltonian cycle). Using every edge exactly once is the defining property of an Eulerian graph.

500

A road between two towns is closed.
Explain how this might affect the shortest path through a transport network.

The shortest path may change because travellers must use alternative routes, increasing the total distance or cost.

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