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IB Mathematics: Applications and Interpretation HL · 12.2: Finance · 12.2.1

Finance Solver: compound interest and depreciation Problem set A Answers

Skills

    1. (a) 20
    2. (b) 30
    3. (c) 24
    4. (d) 36
    1. (a) €4 832.13 (N = 6, I(%) = 3.2, PV = −4000, Pmt = 0, PpY = 1, CpY = 1)
    2. (b) €8 455.21 (N = 60, I(%) = 2.4, PV = −7500, Pmt = 0, PpY = 12, CpY = 12)

  3. $7 507.28 (N = 32, FV = 10 000; PV comes back negative)

  4. N = 8.31…, so 9 years.

  5. I(%) = 5.53

  6. N = 74.49…, so 75 months = 6 years 3 months

In context

  1. (a) £569.46 (I(%) = −22) (b) N = 5.58…, so 6 years.

  2. r = 4.5 − 2 = 2.5; with I(%) = 2.5, FV = €9 051.27

  3. Account Y is better by £19.82 (Account X: £9961.13, Account Y: £9980.96)

  4. (a) $17 781.12 (b) 4 years

Stretch

  1. Monthly: $21 519.47. Yearly: $21 301.71. Difference: $217.76.

jmaths.xyz · AI HL · 12.2.1 Finance Solver: compound interest and depreciation