Definitions
P stands for
Prinicipal
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
r stands for
rate
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%
I stands for
Interest
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
n stands for
number of periods
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
A stands for
Final amount
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
Charlene wants to invest $10 000 long enough for it to grow to at least $20 000. The compound interest rate is 6% p.a. How many whole number of years does she need to invest the money for so that it grows to her $20 000 target?
12 years
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