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4a. Tutorial 4

This document contains 13 math word problems involving simple and compound interest calculations: 1) Find the interest rate if $700 is invested at simple interest and grows to $705.25 in a month. 2) Determine how long it takes $700 invested at 4% simple interest to earn $150 in interest. 3) Given a loan amount, interest rate, and accumulated amount, find the repayment date using bankers' rule. 4) Calculate the maturity value of an investment that was originally at 4% interest compounded quarterly and later changed to 7.5% interest compounded semi-annually.

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15 views

4a. Tutorial 4

This document contains 13 math word problems involving simple and compound interest calculations: 1) Find the interest rate if $700 is invested at simple interest and grows to $705.25 in a month. 2) Determine how long it takes $700 invested at 4% simple interest to earn $150 in interest. 3) Given a loan amount, interest rate, and accumulated amount, find the repayment date using bankers' rule. 4) Calculate the maturity value of an investment that was originally at 4% interest compounded quarterly and later changed to 7.5% interest compounded semi-annually.

Uploaded by

kramaiah0203
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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TUTORIAL 4

1. RM700 is invested on 4 May 2012 at a simple interest rate of r% per annum. The amount
on 3 June 2012 using Banker’s Rule is RM705.25. Find the interest rate, r.

2. How long do we need to invest RM700 at a simple interest rate of 4% per annum if we
want an interest of RM150?

3. Imanda borrowed RM5,000 from a bank on 30 March 2018. If the accumulated amount is
RM5021.67 and the simple interest is 6% per annum, find the date of repayment using
Banker’s Rule.

4. On 1st January 2017, a sum of RM30,000 was invested in an account at 4% compounded


quarterly. Beginning 1st January 2020, the interest rate was changed to 7.5% compounded
semi-annually. Calculate the maturity value of this investment on 1st January 2021.

5. Alice invests RM30,000 in an account for 5 years. The investment account pays 6%
compounded half-yearly for the first 3 years and 5.5% compounded half-yearly for the rest
of the period.
a. What is the maturity value of her investment?
b. Find the interest earned from this investment.

6. Aiman deposited RM3,500 in a saving account at 6% compounded quarterly. Two years


after the deposit, the bank changed the interest rate of 7.5% compounded semi-annually.
Find the balance in his account:
a. At the end of two years
b. At the end of five years

7. Qaira deposited RM1,000 in a saving account at 3% compounded monthly. Find the


number of months required if Qaira wanted the amount in the account to become RM2,000.

8. Five years ago, Fauzan invested RM17,000 inti his account at k% compounded quarterly.
Now the account balance has accumulated to RM21,262.76.
a. Find the interest rate k% compounded quarterly
b. Calculate the compounded amount if the investment is extended for another two
years.

9. A RM3,500 note with simple interest of 7% is received. The maturity date of the note is *
September 2019. On 23 August 2019, the note is discounted at 8% and the proceeds
received are RM3,548.59. Find:
a. The maturity values
b. The term
c. The date of the note

10. A 6%, 110-days note dated 31 August 2019 has a maturity value of RM4,073.33. On 12th
October 2019, the note is discounted and the proceeds received are RM4,019.47. Find:
a. The face value of the note
b. The bank discount rate that is charged when the note is discounted.
11. A bungalow can be bought for RM200,000 cash or by a 20 years instalment scheme at
6% interest on reducing balance. Syakila decided to buy the house with 10% down
payment. Using Constant Ratio formula,
a. find the total amount Syakila will eventually pay for the house
b. calculate Syakilla’s monthly payment

12. Mary bought an LCD television and paid RM300 as a down payment. The balance was to
be paid by monthly payments of RM112 each month for two years. The interest rate
charged was 10% per annum based on the original balance. Find:
a. The amount of the loan
b. The cash price

13. Farouk bought an electric appliance through an instalment plan which he paid RM200
down payment. He had to make 12 monthly payments of RM120 each month to settle the
unpaid balance. If the dealer charged him an interest of 5% per annum on the original
balance, find the cash price of the item.

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