1 Discounts
What is the formula for converting a fraction to a percentage
% = amount/total amount x 100
What is the simple interest formula
I = PRT
What is the compound interest formula?
FV - PV x (1+R)n
What is the difference between appreciation and depreciation?
appreciation: something gains value
depreciation: something loses value
What is the formula to work out the discount?
discount = original price x percentage discount
Calculate the simple interest that is earned on $5000 at 5% p.a. for 4 years.
$1000
If you invest $1,200 at an annual interest rate of 5%, compounded quarterly, what will the amount be after 3 years?
$1,393.92
What is the future value of a property bought for $150,000 that appreciates at an annual rate of 4% over 10 years?
$222,030
A jacket originally costs $80 but is on sale for 25% off. What is the sale price of the jacket?
$60
Benito has a credit card with an outstanding balance of $3600. The interest rate charged on the loan is 18% p.a. Calculate the amount of interest that Benito will be charged on the credit card for the next month.
$54
You want to have $2,500 in 5 years, with an annual interest rate of 4%, compounded annually. How much should you invest now?
$2,059.62
What is the annual depreciation rate if you buy a laptop for $800, expect it to be worth $200 in 4 years?
18.75%
An electronics store is having trouble selling the latest mp3 player. The original price was $99 but on October 1 it was reduced 10%. On October 8 it was reduced a further 10%. On October 12 the regional manager decided to increase all prices by 5%. On October 15 the local manager decided to reduce the price by another 10% anyway.What is the final price after October 15?
$75.78
Sarah invests $5000 in a savings account that earns 4% simple interest per annum. After 3 years, she decides to withdraw $2000 and leave the rest in the account for another 5 years at the same interest rate. How much total interest will Sarah have earned by the end of the 8 years?
$1320
If you invest $800 at an annual interest rate of 6%, compounded monthly, how many years will it take for the investment to grow to $1,200?
6.72 years
Virgin Blue buys a new plane so that extra flights can be arranged between Sydney, Australia and Wellington, New Zealand. The plane costs $1 200 000. It depreciates at a rate of 16.5% p.a. and is written off when its value falls below $150 000. How long can Virgin Blue use this plane before it is written off?
11.55 years or 11 full years