Test Yourself Chapter 3 Consumer Credit and Investment

Maths Quest Maths A Year 12 for Queensland Chapter 3 Consumer credit and investment Test Yourself 1

Test Yourself Chapter 3 Consumer credit and investment Name: ______All Multiple Choice

1 Kath has a $10 000 personal loan. She B 5 To ensure a simple interest rate of B agrees to pay 8.75 p.a. simple interest. 3.5% p.a. on a $450 loan, the quarterly What monthly interest would she pay? interest payments for 1 year must be at A $8.75 least: B $72.92 A $15.75 C $87.50 B $3.94 D $218.75 C $3.93 E $875 D $15.76 E $3.50

2 To receive a monthly interest payment D of $200 at 5.5% p.a. simple interest, 6 Hilda invested $2450 in a term deposit A what would Tom need to invest? which earned 3.9% p.a. simple interest. A $3636.36 The amount of interest she receives in B $14 545.45 1 year would be: C $29 090.91 A $95.55 D $43 636.36 B $7.96 E None of the above C $7.97 D $955.50 E $96.00 3 In order to double an investment of C $10 000 at 5.75% p.a. simple interest, the money would need to be invested 7 Theo borrowed $4500 to purchase a C for: computer package. The yearly interest A 10.2 years rate was a flat 3.75%. The loan was to B 15 years be paid back in 24 monthly instalments. C 17.4 years His monthly repayments would be: D 20.3 years A $403.13 E 25 years B $187.50 C $201.56 D $139.27 4 Jacob borrowed $2125 from the A E $40.21 I. M. Greedy Bank and paid the loan back over 15 monthly repayments of $195. The simple interest rate for the 8 Carrie is going to purchase a $1450 B year was: Speedstar bicycle from Cycle Fast Bike A 30.12% Shop in Whereyebee. She must pay a B 37.65% deposit of $250 and then make C 56.47% 12 monthly payments of $121. The flat D 105.6% interest rate per annum is: E 30.7% A 20.8% B 21% C 4% D 4.3% E 78% Maths Quest Maths A Year 12 for Queensland Chapter 3 Consumer credit and investment Test Yourself 2

9 Chris has bought a $9500 debenture in B 13 A statement from Sila’s credit union D S. Peelt Milk Co. He receives payments account showed an opening balance of of 1.2% p.a. simple interest. How much $2345.67 at the start of September. If, will Chris have earned after 3 years? during September, Sila buys 2 tickets to A $28.50 the grand final for $72 each and spends B $342.00 another $152 on entertainment during C $285.00 one weekend, the minimum balance in D $263.88 Sila’s account would be: E $316.67 A $2121.67 B $2345.67 C $753.67 10 The DIVA Opera Co. have issued E D $2049.67 $5000 debentures which pay investors E $2050.67 $112 per quarter. At what rate p.a. are the debentures paying? A 2.24% 14 A car is advertised for $7732 under the D B 0.224% following terms: C 26.88% $1200 deposit and the balance D 35.84% to be paid over 4 years in E 8.96% equal monthly instalments.

If simple interest was charged at 11 A tennis club had $956 in the bank on A 10% p.a., each monthly instalment 1 June and $1000 for the rest of the would be: month. If the bank pays 4% p.a. paid A $149.69 monthly on the minimum monthly B $177.19 balance, the interest the club earns over C $297.17 June is: D $190.52 A $ 3.19 E $225.52 B $38.24 C $ 6.37 D $ 3.33 15 If the cash price for a bedroom suite is C E $40.00 $1450 and terms offered are a deposit of $350 with equal monthly instalments of $120 for 12 months, the simple interest 12 The minimum monthly balances for C rate per annum charged for the bedroom May, June and July are $234, $125 and suite is: $532 respectively. The interest earned A 23.45% over the 3-month period calculated at B 1.95% 6% p.a. on the minimum monthly C 30.91% balance would be approximately: D 108.8% A $1.90 E None of the above B $13.37 C $4.46 D $7.98 16 The effective rate of interest charged on D E $4.46 a $5000 loan at 7.5% p.a. flat interest with repayments made over a period of 5 years is: A 3.08% p.a. B 4.35% p.a. C 7.5% p.a. D 8.7% p.a. Maths Quest Maths A Year 12 for Queensland Chapter 3 Consumer credit and investment Test Yourself 3

E 15.4% p.a. 20 Chris bought some shares at $4.95 per A share. The company paid a yearly dividend of 7.5 cents per share. The dividend yield on these shares would be: A 1.51% B 6.6% 17 The commission on the sale of a house A C 15.2% is paid at the following rate. D 37.1% 5% of the first $18 000 plus 2.5% E 66% of the remainder of the sale price. GST is paid on the commission at the rate of 10% of the commission. If David sold his house for $150 000, what would he receive from the sale after commission and GST have been deducted from the sale price? A $145 380 B $145 800 C $146 220 D $149 010 E $149 190

18 The Stamp Duty on the sale of a E $300 000 house is at the rate of $2500 plus $3.50 per $100 or part of the $100 over $250 000. The Stamp Duty payment due is: A $2500 B $2503.50 C $2600 D $3000 E $4250

19 Mary bought some shares which cost C her $22 000. The rate of brokerage on the shares is $325 plus 1.5% of the amount over $15 000. The brokerage paid on these shares would amount to: A $325 B $330 C $430 D $655 E None of the above Maths Quest Maths A Year 12 for Queensland Chapter 3 Consumer credit and investment Test Yourself 4