1. Give all your numerical answers correct to two decimal places.

On 1 January 2005, Daniel invested 30 000 AUD at an annual simple interest rate in a Regular
Saver account. On 1 January 2007, Daniel had 31 650 AUD in the account.

(a) Calculate the rate of interest.

(3)

On 1 January 2005, Rebecca invested 30 000 AUD in a Supersaver account at a nominal annual
rate of 2.5 % compounded annually.

(b) Calculate the amount in the Supersaver account after two years.
(3)

(c) Find the number of complete years since 1 January 2005 it will take for the amount in
Rebecca’s account to exceed the amount in Daniel’s account.
(3)

On 1 January 2007, Daniel reinvested 80 % of the money from the Regular Saver account in an
Extra Saver account at a nominal annual rate of 3 % compounded quarterly.

(d) (i) Calculate the amount of money reinvested by Daniel on the 1 January 2007.

(ii) Find the number of complete years it will take for the amount in Daniel’s Extra
Saver account to exceed 30 000 AUD.
(5)
(Total 14 marks)

2. Astrid invests 1200 euros for five years at a nominal annual interest rate of 7.2 %, compounded
monthly.

(a) Find the interest Astrid has earned during the five years of her investment.
Give your answer correct to two decimal places.
(3)

Helen invests 1200 euros in an annual simple interest scheme for five years.
She earns the same interest as Astrid.

(b) Find the simple interest rate of this scheme.

(3)
(Total 6 marks)

IB Questionbank Mathematical Studies 3rd edition 1

3. Daniel wants to invest $25 000 for a total of three years. There are three investment options.

Option One pays simple interest at an annual rate of interest of 6 %.

Option Two pays compound interest at a nominal annual rate of interest of 5 %,

compounded annually.

Option Three pays compound interest at a nominal annual rate of interest of 4.8 %,
compounded monthly.

(a) Calculate the value of his investment at the end of the third year for each investment
option, correct to two decimal places.
(8)

(b) Determine Daniel’s best investment option.

(1)
(Total 9 marks)

4. Give all answers in this question to the nearest whole currency unit.

Ying and Ruby each have 5000 USD to invest.

Ying invests his 5000 USD in a bank account that pays a nominal annual interest rate of 4.2 %
compounded yearly. Ruby invests her 5000 USD in an account that offers a fixed interest of
230 USD each year.

(a) Find the amount of money that Ruby will have in the bank after 3 years.
(2)

(b) Show that Ying will have 7545 USD in the bank at the end of 10 years.
(3)

(c) Find the number of complete years it will take for Ying’s investment to first exceed 6500
USD.
(3)

(d) Find the number of complete years it will take for Ying’s investment to exceed Ruby’s
investment.
(3)

IB Questionbank Mathematical Studies 3rd edition 2

 Ruby moves from the USA to Italy. She transfers 6610 USD into an Italian bank which has an
exchange rate of 1 USD = 0.735 euros. The bank charges 1.8 % commission.

(e) Calculate the amount of money Ruby will invest in the Italian bank after commission.
(4)

Ruby returns to the USA for a short holiday. She converts 800 euros at a bank in Chicago and
receives 1006.20 USD. The bank advertises an exchange rate of 1 euro = 1.29 USD.

(f) Calculate the percentage commission Ruby is charged by the bank.

(5)
(Total 20 marks)

5. The seventh term, u7, of a geometric sequence is 108. The eighth term, u8, of the sequence is 36.

(a) Write down the common ratio of the sequence.

(1)

(b) Find u1.

(2)

The sum of the first k terms in the sequence is 118 096.

(c) Find the value of k.

(3)
(Total 6 marks)

6. A geometric sequence has 1024 as its first term and 128 as its fourth term.

1
(a) Show that the common ratio is 2 .
(2)

(b) Find the value of the eleventh term.

(2)

IB Questionbank Mathematical Studies 3rd edition 3

 (c) Find the sum of the first eight terms.
(3)

(d) Find the number of terms in the sequence for which the sum first exceeds 2047.968.
(3)
(Total 10 marks)

7. Consider the arithmetic sequence 1, 4, 7, 10, 13, …

(a) Find the value of the eleventh term.

(2)

n
(b) The sum of the first n terms of this sequence is 2 (3n – 1).

(i) Find the sum of the first 100 terms in this arithmetic sequence.

(ii) The sum of the first n terms is 477.

2
(a) Show that 3n – n – 954 = 0.

(b) Using your graphic display calculator or otherwise, find the number of
terms, n.
(6)
(Total 8 marks)

8. A concert choir is arranged, per row, according to an arithmetic sequence. There are 20 singers
in the fourth row and 32 singers in the eighth row.

(a) Find the common difference of this arithmetic sequence.

(3)

There are 10 rows in the choir and 11 singers in the first row.

(b) Find the total number of singers in the choir.

(3)
(Total 6 marks)

IB Questionbank Mathematical Studies 3rd edition 4