Apps. and Interpretation for IBDP Maths Ebook 1 | Page 88

Your Practice Set – Applications and Interpretation for IBDP Mathematics
Thus, r � 3.96 . A1 N3
By TVM Solver :
N�
6
I% � ?
PV ��360000
PMT � 0
(M1)(A1) for correct values
FV � 455514.8467
P / Y �1
C / Y � 2
PMT : END
Thus, r � 3.96 . A1 N3
[3]
Exercise 24
1. Ben invested 54000 EUR in an account that pays a nominal annual interest rate of 6%,
compounded monthly.
(a) Find the value of P , the amount of money after 10 years, give the answer correct
to the nearest 1000 EUR.
[3]
(b) 54000 EUR is invested for 10 years at a nominal annual interest rate of r % ,
compounded quarterly. The amount of money after 10 years is P . Find the value
of r .
[3]
2. An amount of money is invested for 7 years at a nominal annual interest rate of 9%,
compounded half-yearly. The amount of money after 7 years is $1600000.
(a) Find the value of P , the original amount of money invested, give the answer
correct to the nearest 10000 dollars.
[3]
(b) P is invested for n years at a nominal annual interest rate of 9%, compounded
yearly. The amount of money after 7 years is $1600000. Find the value of n .
[3]
3. Two equal amounts of money are invested in two different bank accounts, one at a
nominal annual interest rate of 12%, compounded quarterly, for 4 years, with the another
one at a nominal annual interest rate of 12%, compounded monthly, for n years. The
amounts in both accounts at the end of the investments are equal. Find the value of n .
[4]
4. Two equal amounts of money are invested in two different bank accounts, one at a
nominal annual interest rate of 5%, compounded half-yearly, for 8 years, with the another
one at a nominal annual interest rate of 5%, compounded k times per year, for 7.98 years.
The amounts in both accounts at the end of the investments are equal. Find the value of k .
[4]
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