Mathematics

Home > Mathematics > General Mathematics > HSC Course > Financial Mathematics > FM4: Credit and borrowing > Quick quiz: A sample of multiple choice questions for this topic.

FM4

If submit or reset buttons do not function, use HTML version of the quiz.

1. Calculate the simple interest payable on a loan of $50,000 at an interest rate of 8.5% pa over 4 years.

Use this table for questions 2, 3, 4

Home loan table
Annual interest rate = 10% Monthly repayment = $600	This table assumes the same number of days in each month.
N	Principal (P)	Interest (I)	P + I	P + I - R
1 2 3 4	$50 000 $49 816.67 $49 631.81 $49 445.40	$416.67 $415.14 $413.60 (a)	$50 416.67 $50 231.81 $50 045.40 (b)	$49 816.67 $49 631.81 $49 445.40 (c)

Home loan table

Annual interest rate = 10%

Monthly repayment = $600

This table assumes the same number of days in each month.

Principal (P)

Interest (I)

P + I

P + I - R

1
2
3
4

$50 000
$49 816.67
$49 631.81
$49 445.40

$416.67
$415.14
$413.60
(a)

$50 416.67
$50 231.81
$50 045.40
(b)

$49 816.67
$49 631.81
$49 445.40
(c)

2. Use the table to calculate the value at (a)

3. Use the table to calculate the value at (b)

4. Use the table to calculate the value at (c)

5. Joseph has a credit card with no interest free period and an interest rate of 18% p.a.
On 8 September he uses his credit card for purchases totalling $160.

If he pays his account in full on 10 October, how much will he pay?