Mathematics (M) (950) Third Term Masyati Binti Karim

Quiz 1: Mathematics (M) (950)

Answer all questions. All necessary working should be shown clearly.
1. Caroline is planning to make a contribution of RM 2000 on anuary !1 of each year into a bank earning
interest at an effecti"e rate of #$ per year. After she makes her 2%
th
payment on anuary !1 of the year
following her retirement& how much will she ha"e in her bank' (! marks)
*ans+ RM 1,# -01..#/
2. 0en"er 1ildcatting Company has an immediate need for a loan. 2n an agreement worked out with its
banker& 0en"er assigns its royalty income of RM-300 per month for the ne4t ! year from certain oil
properties to the bank& with the first payment due at the end of the first month. 2f the bank charges
interest at the rate of #$ per year compounded monthly& what is the amount of the loan negotiated
between the parties' (- marks)
*ans+ RM 1%0 #--.,./
!. Mathew makes a down payment of RM -000 for an automobile. 5e paid RM -00 per month for !,
months with interest charged at 12$ per year compounded monthly on the unpaid balance. 0etermine
the original cost of the car. 5ence find the portion of Mathew6s total car payments toward interest
charges. (% marks)
*ans+ RM 1, 0-!7 RM 2 !%./
-. 8eresa and Raul purchased a house 10 years ago for RM 200 000. 8hey made a down payment of 20$ of
the purchase price and secured a !0 year con"entional home mortgage at #$ per year on the unpaid
balance. 8he house is now worth RM !30 000. 5ow much equity do 8eresa and Raul ha"e in their house
now *after making 120 monthly payments/'. (, marks)
%. 9ahmi in"ests RM 20 000 in a fund that pays a compound interest at a rate of ,.%$ per year compounded
monthly.

*a/ 9ind the effecti"e interest rate. (! marks)
*b/ 5ow long does it take for 9ahmi6s in"estment to double' (- marks)
*c/ 9ind the interest earned after % years. (- marks)
,. :asim buys a house for RM 120 000. 5e makes a 10$ down payment and the balance he takes a loan for
20 years that charges an annual interest rate of -$ compounded monthly. 9ind
*a/ the monthly payments. (- marks)
*b/ the total amount of interest that will be paid. (! marks)
*c/ the amount of the loan that will ha"e already paid after . years. (% marks)
Mathematics (M) (950) Third Term Masyati Binti Karim
Quiz 1: Mathematics (M) (950)
Answer all questions. All necessary working should be shown clearly.
1. Caroline is planning to make a contribution of RM 2000 on anuary !1 of each year into a bank earning
interest at an effecti"e rate of #$ per year. After she makes her 2%
th
payment on anuary !1 of the year
following her retirement& how much will she ha"e in her bank' (! marks)
*ans+ RM 1,# -01..#/
2. 0en"er 1ildcatting Company has an immediate need for a loan. 2n an agreement worked out with its
banker& 0en"er assigns its royalty income of RM-300 per month for the ne4t ! year from certain oil
properties to the bank& with the first payment due at the end of the first month. 2f the bank charges
interest at the rate of #$ per year compounded monthly& what is the amount of the loan negotiated
between the parties' (- marks)
*ans+ RM 1%0 #--.,./
!. Mathew makes a down payment of RM -000 for an automobile. 5e paid RM -00 per month for !,
months with interest charged at 12$ per year compounded monthly on the unpaid balance. 0etermine
the original cost of the car. 5ence find the portion of Mathew6s total car payments toward interest
charges. (% marks)
*ans+ RM 1, 0-!7 RM 2 !%./
-. 8eresa and Raul purchased a house 10 years ago for RM 200 000. 8hey made a down payment of 20$ of
the purchase price and secured a !0 year con"entional home mortgage at #$ per year on the unpaid
balance. 8he house is now worth RM !30 000. 5ow much equity do 8eresa and Raul ha"e in their house
now *after making 120 monthly payments/'. (, marks)
%. 9ahmi in"ests RM 20 000 in a fund that pays a compound interest at a rate of ,.%$ per year compounded
monthly.

*a/ 9ind the effecti"e interest rate. (! marks)
*b/ 5ow long does it take for 9ahmi6s in"estment to double' (- marks)
*c/ 9ind the interest earned after % years. (- marks)
,. :asim buys a house for RM 120 000. 5e makes a 10$ down payment and the balance he takes a loan for
20 years that charges an annual interest rate of -$ compounded monthly. 9ind
*a/ the monthly payments. (- marks)
*b/ the total amount of interest that will be paid. (! marks)
*c/ the amount of the loan that will ha"e already paid after . years. (% marks)