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Business Arithmetic 2
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Q1)
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You're saving up for a
car which costs
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8400
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You deposit
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1200
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at the start of each year
into an account.
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The account pays compound
interest at
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3%
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paid at the end of each
year.
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a) What is the value of
the investment at the end of year
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3
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b) How long will it take
to save up for the car?
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years
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Q2)
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You're saving up for a
boat which costs
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24000
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You deposit
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2000
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at the start of each year
into an account.
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The account pays compound
interest at
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2.9%
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paid at the end of each
year.
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a) What is the value of
the investment at the end of year
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4
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b) How long will it take
to save up for the car?
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years
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Q3)
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Pete invested
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£3,500
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at a rate of
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5.250%
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for
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8
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years.
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How much was the
investment worth after the 8 years?
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Q4)
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Jane invested
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£5,600
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at a rate of
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6.700%
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for
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12
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years.
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How much was the
investment worth after the 8 years?
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Q5)
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James invests
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£500.00
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at a rate of
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4.50%
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How long will it take for
the investment to reach
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£1,000.00
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in value?
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years.
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Q6)
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Hazel invests
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£1,500.00
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at a rate of
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5.40%
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How long will it take for
the investment to reach
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£8,000.00
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in value?
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years.
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Q7)
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Daniel invested
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£450.00
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At the end of
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9
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years, the value of the
investment was:
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£810.07
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What was the rate of
interest?
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%
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Q8)
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Florence invested
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£1,450.00
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At the end of
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12
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years, the value of the
investment was:
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£2,300.00
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What was the rate of
interest?
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%
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Q9)
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The value of a car
depreciates at
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11.00%
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per annum.
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If the initial value of
the car was:
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£12,500.00
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What will the car be
worth after
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1
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year?
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6
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years?
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Q9)
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The value of a car
depreciates at
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8.20%
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per annum.
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If the initial value of
the car was:
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£28,500.00
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What will the car be
worth after
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3
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year?
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12
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years?
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How many years will it
take until the car is worth less than
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£10,000.00
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Q10)
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The value of a car
depreciates at
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15.70%
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per annum.
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If the initial value of
the car was:
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£18,400.00
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What will the car be
worth after
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2
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year?
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7
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years?
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How many years will it
take until the car is worth less than
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£3,600.00
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Q11)
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The mortgage on a house
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£250,000
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The bank charges
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0.170%
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on the outstanding debt
each month.
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The monthly repayments
are
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£1,200.00
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How many month will it
take to repay the loan?
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months
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years
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Q12)
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The mortgage on a house
is
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£540,000
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The bank charges
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0.210%
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on the outstanding debt
each month.
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The monthly repayments
are
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£2,300.00
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How many month will it
take to repay the loan?
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months
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years
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Q13)
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The mortgage on a house
is
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£350,000
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The bank charges
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0.200%
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on the outstanding debt
each month.
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The loan must be paid off
in
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25
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years.
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What do the monthly repayments need to be?
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Q14)
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The mortgage on a house
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£270,000
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The bank charges
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0.340%
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on the outstanding debt
each month.
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The loan must be paid off
in
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25
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years.
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What do the monthly repayments need to be?
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