Apps. and Interpretation for IBDP Maths Ebook 1 | Page 96

Your Practice Set – Applications and Interpretation for IBDP Mathematics
(c)
(d)
(iii) The amount of interest paid
�644000 � 250000
(M1) for valid approach
� 394000 USD A1 N2
The amount of monthly payment in option 2 is
less than that in option 1.
R1
Thus, the option 2 is better. A1 N0
The amount of interest paid in option 1 is less than
that in option 2.
R1
Thus, the option 1 is better. A1 N0
[7]
[2]
[2]
Exercise 27
1. Takumi is going to purchase a boat. He is suggested to choose one of the two options to
repay the loan of $1900000:
Option 1: A total of 144 equal monthly payments have to be paid at the end of each
month, with a nominal annual interest rate of 3.7%
Option 2: A deposit of $350000 has to be paid at the beginning of the loan, followed by
monthly payments of $17500 at the end of each month until the loan is fully repaid, with
a nominal annual interest rate of 3.4%
(a)
If Takumi selects the option 1, find
(i)
(ii)
the amount of monthly payment,
the total amount to be paid,
(b)
(iii)
the amount of interest paid.
If Takumi selects the option 2, find
[7]
(i)
(ii)
the number of months to repay the loan,
the exact total amount to be paid,
(c)
(iii) the amount of interest paid.
[7]
By considering the amounts of monthly payment in both options, state the better
option for Takumi and explain the answer.
[2]
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