China Town

How long (in years, to 2 decimal places) will it take for $1240 to accumulate to $1860 at 5.1% p.a. simple interest? |

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  | Student Response | Value | Correct Answer |

Answer: | 9.80   | 100% | 9.80 |

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General Feedback: | |

I = | S - P |

= | 1860 - 1240 |

= | 620 |

  | |

| |

I = | Prt |

| |

620 = | 1240 × 0.051 × t |

| |

t = |        620        

1240 × 0.051 |

| |

t = | 9.8 |

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Score: | 9/9 |

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2.

On 7 April, Mr X borrows $1300 at 6.2% p.a. and repays on 12 November of the same year. Find the amount of simple interest paid. |

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  | Student Response | Value | Correct Answer |

Answer: | 48.36   | 100% | 48.36 |

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General Feedback: | |

| Number of days is 219 |

| I | = 1300 × 0.062 × | 219

365 |

| I | = 48.36 | |

Score: 9/9  

3.

A bank discounts a note which will mature for $3600 in 4 months. If the simple discount rate is 8.3% p.a. what is the price paid for the note? |

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  | Student Response | Value | Correct Answer |

Answer: | 3500.40   | 100% | 3,500.40 |

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General Feedback: | |

P | = S(1 - dt) |

| = 3600(1 - 0.083 × |   4 

 12 | ) |

| = 3500.4 |

Score: 9/9  

4.

A bank discounts a note maturing for $36,000 in 3 months using a simple discount rate of 9.2% p.a. What simple interest rate p.a. are they obtaining (as a %, to 2 decimal places)? (The rate of simple interest is always greater than the rate of simple discount.) |

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  | Student Response | Value | Correct Answer |

Answer: | 9.42   | 100% | 9.42 |

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General Feedback: | |

P = | S(1 - dt) |

P = | 36000(1 - 0.092 × 3/12) |

= | 35172 |

  | |

I = | 36000 - 35172 |

= | 828 |

  | |

I = | Prt |

828 = | 35172 × r × 3/12 |

r = |         828        

(35172 × 3/12) |

= | 0.094166 p.a. |

= | 9.42% p.a. |

Do not type % as part of your answer. |

  | |

or solve 36000 = | 35172(1 + r × 3/12) |

Score: 9/9  

5.

A note maturing for...