12x1 t04 02 finance formulas (2010)
TRANSCRIPT
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Finance Formulae
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Finance FormulaeSimple Interest
I PRT
simple interestI principalP
interest rate as a decimal (or fraction)R time periodsT
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Finance FormulaeSimple Interest
I PRT
simple interestI principalP
interest rate as a decimal (or fraction)R time periodsT
e.g. If $3000 is invested for seven years at 6% p.a. simple interest, how much will it be worth after seven years?
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Finance FormulaeSimple Interest
I PRT
simple interestI principalP
interest rate as a decimal (or fraction)R time periodsT
I PRT
e.g. If $3000 is invested for seven years at 6% p.a. simple interest, how much will it be worth after seven years?
![Page 5: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/5.jpg)
Finance FormulaeSimple Interest
I PRT
simple interestI principalP
interest rate as a decimal (or fraction)R time periodsT
I PRT 3000 0.06 7I 1260
e.g. If $3000 is invested for seven years at 6% p.a. simple interest, how much will it be worth after seven years?
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Finance FormulaeSimple Interest
I PRT
simple interestI principalP
interest rate as a decimal (or fraction)R time periodsT
I PRT 3000 0.06 7I 1260
Investment is worth $4260 after 7 years
e.g. If $3000 is invested for seven years at 6% p.a. simple interest, how much will it be worth after seven years?
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Compound Interestn
n PRA
periodstimeafter amount nAn principalP1 interest rate as a decimal(or fraction)R time periodsn
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Compound Interestn
n PRA
periodstimeafter amount nAn principalP1 interest rate as a decimal(or fraction)R time periodsn
Note: interest rate and time periods must match the compounding time
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Compound Interestn
n PRA
periodstimeafter amount nAn principalP1 interest rate as a decimal(or fraction)R time periodsn
Note: interest rate and time periods must match the compounding time
Note: general term of a geometric series
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Compound Interestn
n PRA
periodstimeafter amount nAn principalP1 interest rate as a decimal(or fraction)R time periodsn
Note: interest rate and time periods must match the compounding timee.g. If $3000 is invested for seven years at 6% p.a, how much will it be
worth after seven years if;a) compounded annually?
Note: general term of a geometric series
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Compound Interestn
n PRA
periodstimeafter amount nAn principalP1 interest rate as a decimal(or fraction)R time periodsn
Note: interest rate and time periods must match the compounding timee.g. If $3000 is invested for seven years at 6% p.a, how much will it be
worth after seven years if;a) compounded annually?
nnA PR
Note: general term of a geometric series
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Compound Interestn
n PRA
periodstimeafter amount nAn principalP1 interest rate as a decimal(or fraction)R time periodsn
Note: interest rate and time periods must match the compounding timee.g. If $3000 is invested for seven years at 6% p.a, how much will it be
worth after seven years if;a) compounded annually?
nnA PR
77 3000 1.06A
7 4510.89A
Note: general term of a geometric series
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Compound Interestn
n PRA
periodstimeafter amount nAn principalP1 interest rate as a decimal(or fraction)R time periodsn
Note: interest rate and time periods must match the compounding timee.g. If $3000 is invested for seven years at 6% p.a, how much will it be
worth after seven years if;a) compounded annually?
nnA PR
77 3000 1.06A
7 4510.89A
Investment is worth $4510.89 after 7 years
Note: general term of a geometric series
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Compound Interestn
n PRA
periodstimeafter amount nAn principalP1 interest rate as a decimal(or fraction)R time periodsn
Note: interest rate and time periods must match the compounding timee.g. If $3000 is invested for seven years at 6% p.a, how much will it be
worth after seven years if;a) compounded annually?
nnA PR
77 3000 1.06A
7 4510.89A
Investment is worth $4510.89 after 7 years
b) compounded monthly?
Note: general term of a geometric series
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Compound Interestn
n PRA
periodstimeafter amount nAn principalP1 interest rate as a decimal(or fraction)R time periodsn
Note: interest rate and time periods must match the compounding timee.g. If $3000 is invested for seven years at 6% p.a, how much will it be
worth after seven years if;a) compounded annually?
nnA PR
77 3000 1.06A
7 4510.89A
Investment is worth $4510.89 after 7 years
b) compounded monthly?n
nA PR
Note: general term of a geometric series
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Compound Interestn
n PRA
periodstimeafter amount nAn principalP1 interest rate as a decimal(or fraction)R time periodsn
Note: interest rate and time periods must match the compounding timee.g. If $3000 is invested for seven years at 6% p.a, how much will it be
worth after seven years if;a) compounded annually?
nnA PR
77 3000 1.06A
7 4510.89A
Investment is worth $4510.89 after 7 years
b) compounded monthly?n
nA PR
8484 3000 1.005A
84 4561.11A
Note: general term of a geometric series
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Compound Interestn
n PRA
periodstimeafter amount nAn principalP1 interest rate as a decimal(or fraction)R time periodsn
Note: interest rate and time periods must match the compounding timee.g. If $3000 is invested for seven years at 6% p.a, how much will it be
worth after seven years if;a) compounded annually?
nnA PR
77 3000 1.06A
7 4510.89A
Investment is worth $4510.89 after 7 years
b) compounded monthly?n
nA PR
8484 3000 1.005A
84 4561.11A
Investment is worth $4561.11 after 7 years
Note: general term of a geometric series
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Depreciationn
n PRA
periodstimeafter amount nAn principalP1 depreciation rate as a decimal(or fraction)R time periodsn
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Depreciationn
n PRA
periodstimeafter amount nAn principalP1 depreciation rate as a decimal(or fraction)R time periodsn
Note: depreciation rate and time periods must match the depreciation time
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Depreciationn
n PRA
periodstimeafter amount nAn principalP1 depreciation rate as a decimal(or fraction)R time periodsn
Note: depreciation rate and time periods must match the depreciation timee.g. An espresso machine bought for $15000 on 1st January 2001
depreciates at a rate of 12.5%p.a.
a) What will its value be on 1st January 2010?
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Depreciationn
n PRA
periodstimeafter amount nAn principalP1 depreciation rate as a decimal(or fraction)R time periodsn
Note: depreciation rate and time periods must match the depreciation timee.g. An espresso machine bought for $15000 on 1st January 2001
depreciates at a rate of 12.5%p.a.
a) What will its value be on 1st January 2010?n
nA PR
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Depreciationn
n PRA
periodstimeafter amount nAn principalP1 depreciation rate as a decimal(or fraction)R time periodsn
Note: depreciation rate and time periods must match the depreciation timee.g. An espresso machine bought for $15000 on 1st January 2001
depreciates at a rate of 12.5%p.a.
a) What will its value be on 1st January 2010?n
nA PR
99 15000 0.875A
9 4509.87A
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Depreciationn
n PRA
periodstimeafter amount nAn principalP1 depreciation rate as a decimal(or fraction)R time periodsn
Note: depreciation rate and time periods must match the depreciation timee.g. An espresso machine bought for $15000 on 1st January 2001
depreciates at a rate of 12.5%p.a.
a) What will its value be on 1st January 2010?n
nA PR
99 15000 0.875A
9 4509.87A Machine is worth $4509.87 after 9 years
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b) During which year will the value drop below 10% of the original cost?
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b) During which year will the value drop below 10% of the original cost?
nn PRA
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b) During which year will the value drop below 10% of the original cost?
15000 0.875 1500n
nn PRA
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b) During which year will the value drop below 10% of the original cost?
15000 0.875 1500n
0.875 0.1n
log 0.875 log0.1n
log0.875 log0.1n log 0.1
log 0.875n
17.24377353n
nn PRA
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b) During which year will the value drop below 10% of the original cost?
15000 0.875 1500n
0.875 0.1n
log 0.875 log0.1n
log0.875 log0.1n log 0.1
log 0.875n
17.24377353n during the 18th year (i.e. 2018) its value will drop to
10% the original cost
nn PRA
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Investing Money by Regular Instalments
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2002 HSC Question 9b)A superannuation fund pays an interest rate of 8.75% p.a. which compounds annually. Stephanie decides to invest $5000 in the fund at the beginning of each year, commencing on 1 January 2003.
What will be the value of Stephanie’s superannuation when she retires on 31 December 2023?
(4)
Investing Money by Regular Instalments
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2002 HSC Question 9b)A superannuation fund pays an interest rate of 8.75% p.a. which compounds annually. Stephanie decides to invest $5000 in the fund at the beginning of each year, commencing on 1 January 2003.
What will be the value of Stephanie’s superannuation when she retires on 31 December 2023?
(4)
2121 5000 1.0875A amount invested for 21 years
Investing Money by Regular Instalments
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2002 HSC Question 9b)A superannuation fund pays an interest rate of 8.75% p.a. which compounds annually. Stephanie decides to invest $5000 in the fund at the beginning of each year, commencing on 1 January 2003.
What will be the value of Stephanie’s superannuation when she retires on 31 December 2023?
(4)
2121 5000 1.0875A amount invested for 21 years
2020 5000 1.0875A amount invested for 20 years
Investing Money by Regular Instalments
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2002 HSC Question 9b)A superannuation fund pays an interest rate of 8.75% p.a. which compounds annually. Stephanie decides to invest $5000 in the fund at the beginning of each year, commencing on 1 January 2003.
What will be the value of Stephanie’s superannuation when she retires on 31 December 2023?
(4)
2121 5000 1.0875A amount invested for 21 years
2020 5000 1.0875A amount invested for 20 years
1919 5000 1.0875A amount invested for 19 years
Investing Money by Regular Instalments
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2002 HSC Question 9b)A superannuation fund pays an interest rate of 8.75% p.a. which compounds annually. Stephanie decides to invest $5000 in the fund at the beginning of each year, commencing on 1 January 2003.
What will be the value of Stephanie’s superannuation when she retires on 31 December 2023?
(4)
2121 5000 1.0875A amount invested for 21 years
2020 5000 1.0875A amount invested for 20 years
1919 5000 1.0875A amount invested for 19 years
11 5000 1.0875A amount invested for 1 year
Investing Money by Regular Instalments
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21 20Amount 5000 1.0875 5000 1.0875 5000 1.0875
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21 20Amount 5000 1.0875 5000 1.0875 5000 1.0875
5000 1.0875 , 1.0875, 21a r n
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21 20Amount 5000 1.0875 5000 1.0875 5000 1.0875
21S
5000 1.0875 , 1.0875, 21a r n
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21 20Amount 5000 1.0875 5000 1.0875 5000 1.0875
21S
5000 1.0875 , 1.0875, 21a r n
215000 1.0875 1.0875 10.0875
$299604.86
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21 20Amount 5000 1.0875 5000 1.0875 5000 1.0875
21S
5000 1.0875 , 1.0875, 21a r n
215000 1.0875 1.0875 10.0875
$299604.86
c*) Find the year when the fund first exceeds $200000.
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21 20Amount 5000 1.0875 5000 1.0875 5000 1.0875
21S
5000 1.0875 , 1.0875, 21a r n
215000 1.0875 1.0875 10.0875
$299604.86
c*) Find the year when the fund first exceeds $200000.
2Amount 5000 1.0875 5000 1.0875 5000 1.0875 n
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21 20Amount 5000 1.0875 5000 1.0875 5000 1.0875
21S
5000 1.0875 , 1.0875, 21a r n
215000 1.0875 1.0875 10.0875
$299604.86
c*) Find the year when the fund first exceeds $200000.
2Amount 5000 1.0875 5000 1.0875 5000 1.0875 n
nS
![Page 42: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/42.jpg)
21 20Amount 5000 1.0875 5000 1.0875 5000 1.0875
21S
5000 1.0875 , 1.0875, 21a r n
215000 1.0875 1.0875 10.0875
$299604.86
c*) Find the year when the fund first exceeds $200000.
2Amount 5000 1.0875 5000 1.0875 5000 1.0875 n
nS
i.e 200000nS
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5000 1.0875 1.0875 1200000
0.0875
n
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5000 1.0875 1.0875 1200000
0.0875
n
2801.0875 187
n
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5000 1.0875 1.0875 1200000
0.0875
n
2801.0875 187
n
3671.087587
n
![Page 46: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/46.jpg)
5000 1.0875 1.0875 1200000
0.0875
n
2801.0875 187
n
3671.087587
n
367log 1.0875 log87
n
![Page 47: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/47.jpg)
5000 1.0875 1.0875 1200000
0.0875
n
2801.0875 187
n
3671.087587
n
367log 1.0875 log87
n
367log 1.0875 log87
n
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5000 1.0875 1.0875 1200000
0.0875
n
2801.0875 187
n
3671.087587
n
367log 1.0875 log87
n
367log 1.0875 log87
n
367log87
log 1.0875n
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5000 1.0875 1.0875 1200000
0.0875
n
2801.0875 187
n
3671.087587
n
367log 1.0875 log87
n
367log 1.0875 log87
n
367log87
log 1.0875n
17.16056585n 18n
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5000 1.0875 1.0875 1200000
0.0875
n
2801.0875 187
n
3671.087587
n
367log 1.0875 log87
n
367log 1.0875 log87
n
367log87
log 1.0875n
17.16056585n 18n
Thus 2021 is the first year when the fund exceeds $200000
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d*) What annual instalment would have produced $1000000 by 31st
December 2020?
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d*) What annual instalment would have produced $1000000 by 31st
December 2020?
18 17Amount 1.0875 1.0875 1.0875P P P
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d*) What annual instalment would have produced $1000000 by 31st
December 2020?
18 17Amount 1.0875 1.0875 1.0875P P P 1.0875 , 1.0875, 18a P r n
![Page 54: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/54.jpg)
d*) What annual instalment would have produced $1000000 by 31st
December 2020?
18 17Amount 1.0875 1.0875 1.0875P P P 1.0875 , 1.0875, 18a P r n
18i.e. 1000000S
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d*) What annual instalment would have produced $1000000 by 31st
December 2020?
18 17Amount 1.0875 1.0875 1.0875P P P 1.0875 , 1.0875, 18a P r n
18i.e. 1000000S
181.0875 1.0875 11000000
0.0875P
![Page 56: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/56.jpg)
d*) What annual instalment would have produced $1000000 by 31st
December 2020?
18 17Amount 1.0875 1.0875 1.0875P P P 1.0875 , 1.0875, 18a P r n
18i.e. 1000000S
181.0875 1.0875 11000000
0.0875P
18
1000000 0.08751.0875 1.0875 1
P
![Page 57: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/57.jpg)
d*) What annual instalment would have produced $1000000 by 31st
December 2020?
18 17Amount 1.0875 1.0875 1.0875P P P 1.0875 , 1.0875, 18a P r n
18i.e. 1000000S
181.0875 1.0875 11000000
0.0875P
18
1000000 0.08751.0875 1.0875 1
P
22818.16829
![Page 58: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/58.jpg)
d*) What annual instalment would have produced $1000000 by 31st
December 2020?
18 17Amount 1.0875 1.0875 1.0875P P P 1.0875 , 1.0875, 18a P r n
18i.e. 1000000S
181.0875 1.0875 11000000
0.0875P
18
1000000 0.08751.0875 1.0875 1
P
22818.16829
An annual instalment of $22818.17 will produce $1000000
![Page 59: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/59.jpg)
Loan Repayments
![Page 60: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/60.jpg)
Loan RepaymentsThe amount still owing after n time periods is;
![Page 61: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/61.jpg)
Loan Repayments principal plus interest instalments plus interestnA The amount still owing after n time periods is;
![Page 62: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/62.jpg)
Loan Repayments principal plus interest instalments plus interestnA The amount still owing after n time periods is;
e.g. (i) Richard and Kathy borrow $20000 from the bank to go on an overseas holiday. Interest is charged at 12% p.a., compounded monthly. They start repaying the loan one month after taking it out, and their monthly instalments are $300.
![Page 63: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/63.jpg)
Loan Repayments principal plus interest instalments plus interestnA The amount still owing after n time periods is;
e.g. (i) Richard and Kathy borrow $20000 from the bank to go on an overseas holiday. Interest is charged at 12% p.a., compounded monthly. They start repaying the loan one month after taking it out, and their monthly instalments are $300.
a) How much will they still owe the bank at the end of six years?
![Page 64: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/64.jpg)
Loan Repayments principal plus interest instalments plus interestnA The amount still owing after n time periods is;
e.g. (i) Richard and Kathy borrow $20000 from the bank to go on an overseas holiday. Interest is charged at 12% p.a., compounded monthly. They start repaying the loan one month after taking it out, and their monthly instalments are $300.
a) How much will they still owe the bank at the end of six years?Initial loan is borrowed for 72 months 7220000 1.01
![Page 65: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/65.jpg)
Loan Repayments principal plus interest instalments plus interestnA The amount still owing after n time periods is;
e.g. (i) Richard and Kathy borrow $20000 from the bank to go on an overseas holiday. Interest is charged at 12% p.a., compounded monthly. They start repaying the loan one month after taking it out, and their monthly instalments are $300.
a) How much will they still owe the bank at the end of six years?Initial loan is borrowed for 72 months 7220000 1.01
Repayments are an
investment in your loan
![Page 66: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/66.jpg)
Loan Repayments principal plus interest instalments plus interestnA The amount still owing after n time periods is;
e.g. (i) Richard and Kathy borrow $20000 from the bank to go on an overseas holiday. Interest is charged at 12% p.a., compounded monthly. They start repaying the loan one month after taking it out, and their monthly instalments are $300.
a) How much will they still owe the bank at the end of six years?
71300 1.011st repayment invested for 71 monthsInitial loan is borrowed for 72 months 7220000 1.01
Repayments are an
investment in your loan
![Page 67: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/67.jpg)
Loan Repayments principal plus interest instalments plus interestnA The amount still owing after n time periods is;
e.g. (i) Richard and Kathy borrow $20000 from the bank to go on an overseas holiday. Interest is charged at 12% p.a., compounded monthly. They start repaying the loan one month after taking it out, and their monthly instalments are $300.
a) How much will they still owe the bank at the end of six years?
71300 1.011st repayment invested for 71 monthsInitial loan is borrowed for 72 months 7220000 1.01
70300 1.012nd repayment invested for 70 months
Repayments are an
investment in your loan
![Page 68: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/68.jpg)
Loan Repayments principal plus interest instalments plus interestnA The amount still owing after n time periods is;
e.g. (i) Richard and Kathy borrow $20000 from the bank to go on an overseas holiday. Interest is charged at 12% p.a., compounded monthly. They start repaying the loan one month after taking it out, and their monthly instalments are $300.
a) How much will they still owe the bank at the end of six years?
71300 1.011st repayment invested for 71 monthsInitial loan is borrowed for 72 months 7220000 1.01
70300 1.012nd repayment invested for 70 months
1300 1.012nd last repayment invested for 1 month
Repayments are an
investment in your loan
![Page 69: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/69.jpg)
Loan Repayments principal plus interest instalments plus interestnA The amount still owing after n time periods is;
e.g. (i) Richard and Kathy borrow $20000 from the bank to go on an overseas holiday. Interest is charged at 12% p.a., compounded monthly. They start repaying the loan one month after taking it out, and their monthly instalments are $300.
a) How much will they still owe the bank at the end of six years?
71300 1.011st repayment invested for 71 monthsInitial loan is borrowed for 72 months 7220000 1.01
70300 1.012nd repayment invested for 70 months
1300 1.012nd last repayment invested for 1 month300last repayment invested for 0 months
Repayments are an
investment in your loan
![Page 70: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/70.jpg)
principal plus interest instalments plus interestnA
![Page 71: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/71.jpg)
principal plus interest instalments plus interestnA
72 70 7172 20000 1.01 300 300 1.01 300 1.01 300 1.01A
![Page 72: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/72.jpg)
principal plus interest instalments plus interestnA
72 70 7172 20000 1.01 300 300 1.01 300 1.01 300 1.01A
300, 1.01, 72a r n
![Page 73: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/73.jpg)
principal plus interest instalments plus interestnA
72 70 7172 20000 1.01 300 300 1.01 300 1.01 300 1.01A
300, 1.01, 72a r n
72 120000 1.01
1
na rr
![Page 74: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/74.jpg)
principal plus interest instalments plus interestnA
72 70 7172 20000 1.01 300 300 1.01 300 1.01 300 1.01A
300, 1.01, 72a r n
72 120000 1.01
1
na rr
7272 300 1.01 1
20000 1.010.01
$9529.01
![Page 75: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/75.jpg)
principal plus interest instalments plus interestnA
72 70 7172 20000 1.01 300 300 1.01 300 1.01 300 1.01A
300, 1.01, 72a r n
72 120000 1.01
1
na rr
7272 300 1.01 1
20000 1.010.01
$9529.01
b) How much interest will they have paid in six years?
![Page 76: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/76.jpg)
principal plus interest instalments plus interestnA
72 70 7172 20000 1.01 300 300 1.01 300 1.01 300 1.01A
300, 1.01, 72a r n
72 120000 1.01
1
na rr
7272 300 1.01 1
20000 1.010.01
$9529.01
b) How much interest will they have paid in six years?Total repayments = 300 72
$21600
![Page 77: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/77.jpg)
principal plus interest instalments plus interestnA
72 70 7172 20000 1.01 300 300 1.01 300 1.01 300 1.01A
300, 1.01, 72a r n
72 120000 1.01
1
na rr
7272 300 1.01 1
20000 1.010.01
$9529.01
b) How much interest will they have paid in six years?Total repayments = 300 72
$21600
Loan reduction = 20000 9529.01$10470.99
![Page 78: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/78.jpg)
principal plus interest instalments plus interestnA
72 70 7172 20000 1.01 300 300 1.01 300 1.01 300 1.01A
300, 1.01, 72a r n
72 120000 1.01
1
na rr
7272 300 1.01 1
20000 1.010.01
$9529.01
b) How much interest will they have paid in six years?Total repayments = 300 72
$21600
Loan reduction = 20000 9529.01$10470.99
= 21600 10470.99Interest
$11129.01
![Page 79: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/79.jpg)
(ii) Finding the amount of each instalment
![Page 80: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/80.jpg)
(ii) Finding the amount of each instalmentYog borrows $30000 to buy a car. He will repay the loan in five years, paying 60 equal monthly instalments, beginning one month after he takes out the loan. Interest is charged at 9% p.a. compounded monthly.Find how much the monthly instalment shold be.
![Page 81: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/81.jpg)
(ii) Finding the amount of each instalmentYog borrows $30000 to buy a car. He will repay the loan in five years, paying 60 equal monthly instalments, beginning one month after he takes out the loan. Interest is charged at 9% p.a. compounded monthly.Find how much the monthly instalment shold be.
Let the monthly instalment be $M
![Page 82: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/82.jpg)
(ii) Finding the amount of each instalmentYog borrows $30000 to buy a car. He will repay the loan in five years, paying 60 equal monthly instalments, beginning one month after he takes out the loan. Interest is charged at 9% p.a. compounded monthly.Find how much the monthly instalment shold be.
Initial loan is borrowed for 60 months 6030000 1.0075Let the monthly instalment be $M
![Page 83: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/83.jpg)
(ii) Finding the amount of each instalmentYog borrows $30000 to buy a car. He will repay the loan in five years, paying 60 equal monthly instalments, beginning one month after he takes out the loan. Interest is charged at 9% p.a. compounded monthly.Find how much the monthly instalment shold be.
Initial loan is borrowed for 60 months 6030000 1.0075
591.0075M1st repayment invested for 59 months
Let the monthly instalment be $M
![Page 84: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/84.jpg)
(ii) Finding the amount of each instalmentYog borrows $30000 to buy a car. He will repay the loan in five years, paying 60 equal monthly instalments, beginning one month after he takes out the loan. Interest is charged at 9% p.a. compounded monthly.Find how much the monthly instalment shold be.
Initial loan is borrowed for 60 months 6030000 1.0075
591.0075M1st repayment invested for 59 months
581.0075M2nd repayment invested for 58 months
Let the monthly instalment be $M
![Page 85: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/85.jpg)
(ii) Finding the amount of each instalmentYog borrows $30000 to buy a car. He will repay the loan in five years, paying 60 equal monthly instalments, beginning one month after he takes out the loan. Interest is charged at 9% p.a. compounded monthly.Find how much the monthly instalment shold be.
Initial loan is borrowed for 60 months 6030000 1.0075
591.0075M1st repayment invested for 59 months
581.0075M2nd repayment invested for 58 months
11.0075M2nd last repayment invested for 1 month
Let the monthly instalment be $M
![Page 86: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/86.jpg)
(ii) Finding the amount of each instalmentYog borrows $30000 to buy a car. He will repay the loan in five years, paying 60 equal monthly instalments, beginning one month after he takes out the loan. Interest is charged at 9% p.a. compounded monthly.Find how much the monthly instalment shold be.
Initial loan is borrowed for 60 months 6030000 1.0075
591.0075M1st repayment invested for 59 months
581.0075M2nd repayment invested for 58 months
11.0075M2nd last repayment invested for 1 monthMlast repayment invested for 0 months
Let the monthly instalment be $M
![Page 87: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/87.jpg)
principal plus interest instalments plus interestnA
![Page 88: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/88.jpg)
principal plus interest instalments plus interestnA
60 58 5960 30000 1.0075 1.0075 1.0075 1.0075A M M M M
![Page 89: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/89.jpg)
principal plus interest instalments plus interestnA
60 58 5960 30000 1.0075 1.0075 1.0075 1.0075A M M M M
, 1.0075, 60a M r n
![Page 90: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/90.jpg)
principal plus interest instalments plus interestnA
60 58 5960 30000 1.0075 1.0075 1.0075 1.0075A M M M M
, 1.0075, 60a M r n
60 130000 1.0075
1
na rr
![Page 91: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/91.jpg)
principal plus interest instalments plus interestnA
60 58 5960 30000 1.0075 1.0075 1.0075 1.0075A M M M M
, 1.0075, 60a M r n
60 130000 1.0075
1
na rr
6060 1.0075 1
30000 1.00750.0075
M
![Page 92: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/92.jpg)
principal plus interest instalments plus interestnA
60 58 5960 30000 1.0075 1.0075 1.0075 1.0075A M M M M
, 1.0075, 60a M r n
60 130000 1.0075
1
na rr
6060 1.0075 1
30000 1.00750.0075
M
60But 0A
![Page 93: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/93.jpg)
principal plus interest instalments plus interestnA
60 58 5960 30000 1.0075 1.0075 1.0075 1.0075A M M M M
, 1.0075, 60a M r n
60 130000 1.0075
1
na rr
6060 1.0075 1
30000 1.00750.0075
M
60But 0A
6060 1.0075 1
30000 1.0075 00.0075
M
![Page 94: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/94.jpg)
principal plus interest instalments plus interestnA
60 58 5960 30000 1.0075 1.0075 1.0075 1.0075A M M M M
, 1.0075, 60a M r n
60 130000 1.0075
1
na rr
6060 1.0075 1
30000 1.00750.0075
M
60But 0A
6060 1.0075 1
30000 1.0075 00.0075
M
60
601.0075 130000 1.0075
0.0075M
![Page 95: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/95.jpg)
principal plus interest instalments plus interestnA
60 58 5960 30000 1.0075 1.0075 1.0075 1.0075A M M M M
, 1.0075, 60a M r n
60 130000 1.0075
1
na rr
6060 1.0075 1
30000 1.00750.0075
M
60But 0A
6060 1.0075 1
30000 1.0075 00.0075
M
60
601.0075 130000 1.0075
0.0075M
60
60
30000 1.0075 0.00751.0075 1
M
![Page 96: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/96.jpg)
principal plus interest instalments plus interestnA
60 58 5960 30000 1.0075 1.0075 1.0075 1.0075A M M M M
, 1.0075, 60a M r n
60 130000 1.0075
1
na rr
6060 1.0075 1
30000 1.00750.0075
M
60But 0A
6060 1.0075 1
30000 1.0075 00.0075
M
60
601.0075 130000 1.0075
0.0075M
60
60
30000 1.0075 0.00751.0075 1
M
$622.75M
![Page 97: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/97.jpg)
(iii) Finding the length of the loan
![Page 98: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/98.jpg)
(iii) Finding the length of the loan2005 HSC Question 8c)Weelabarrabak Shire Council borrowed $3000000 at the beginning of 2005. The annual interest rate is 12%. Each year, interest is calculated on the balance at the beginning of the year and added to the balance owing. The debt is to be repaid by equal annual repayments of $480000, with the first repayment being made at the end of 2005. Let be the balance owing after the th repayment.nA n
![Page 99: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/99.jpg)
(iii) Finding the length of the loan2005 HSC Question 8c)Weelabarrabak Shire Council borrowed $3000000 at the beginning of 2005. The annual interest rate is 12%. Each year, interest is calculated on the balance at the beginning of the year and added to the balance owing. The debt is to be repaid by equal annual repayments of $480000, with the first repayment being made at the end of 2005. Let be the balance owing after the th repayment.nA n
26 52(i) Show that 3 10 1.12 4.8 10 1 1.12A
![Page 100: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/100.jpg)
(iii) Finding the length of the loan2005 HSC Question 8c)Weelabarrabak Shire Council borrowed $3000000 at the beginning of 2005. The annual interest rate is 12%. Each year, interest is calculated on the balance at the beginning of the year and added to the balance owing. The debt is to be repaid by equal annual repayments of $480000, with the first repayment being made at the end of 2005. Let be the balance owing after the th repayment.nA n
26 52(i) Show that 3 10 1.12 4.8 10 1 1.12A
Initial loan is borrowed for 2 years 23000000 1.12
![Page 101: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/101.jpg)
(iii) Finding the length of the loan2005 HSC Question 8c)Weelabarrabak Shire Council borrowed $3000000 at the beginning of 2005. The annual interest rate is 12%. Each year, interest is calculated on the balance at the beginning of the year and added to the balance owing. The debt is to be repaid by equal annual repayments of $480000, with the first repayment being made at the end of 2005. Let be the balance owing after the th repayment.nA n
26 52(i) Show that 3 10 1.12 4.8 10 1 1.12A
Initial loan is borrowed for 2 years 23000000 1.12
1480000 1.121st repayment invested for 1 year
![Page 102: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/102.jpg)
(iii) Finding the length of the loan2005 HSC Question 8c)Weelabarrabak Shire Council borrowed $3000000 at the beginning of 2005. The annual interest rate is 12%. Each year, interest is calculated on the balance at the beginning of the year and added to the balance owing. The debt is to be repaid by equal annual repayments of $480000, with the first repayment being made at the end of 2005. Let be the balance owing after the th repayment.nA n
26 52(i) Show that 3 10 1.12 4.8 10 1 1.12A
Initial loan is borrowed for 2 years 23000000 1.12
1480000 1.121st repayment invested for 1 year4800002nd repayment invested for 0 years
![Page 103: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/103.jpg)
(iii) Finding the length of the loan2005 HSC Question 8c)Weelabarrabak Shire Council borrowed $3000000 at the beginning of 2005. The annual interest rate is 12%. Each year, interest is calculated on the balance at the beginning of the year and added to the balance owing. The debt is to be repaid by equal annual repayments of $480000, with the first repayment being made at the end of 2005. Let be the balance owing after the th repayment.nA n
26 52(i) Show that 3 10 1.12 4.8 10 1 1.12A
Initial loan is borrowed for 2 years 23000000 1.12
1480000 1.121st repayment invested for 1 year4800002nd repayment invested for 0 years
principal plus interest instalments plus interestnA
![Page 104: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/104.jpg)
(iii) Finding the length of the loan2005 HSC Question 8c)Weelabarrabak Shire Council borrowed $3000000 at the beginning of 2005. The annual interest rate is 12%. Each year, interest is calculated on the balance at the beginning of the year and added to the balance owing. The debt is to be repaid by equal annual repayments of $480000, with the first repayment being made at the end of 2005. Let be the balance owing after the th repayment.nA n
26 52(i) Show that 3 10 1.12 4.8 10 1 1.12A
Initial loan is borrowed for 2 years 23000000 1.12
1480000 1.121st repayment invested for 1 year4800002nd repayment invested for 0 years
principal plus interest instalments plus interestnA
22 3000000 1.12 480000 480000 1.12A
![Page 105: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/105.jpg)
(iii) Finding the length of the loan2005 HSC Question 8c)Weelabarrabak Shire Council borrowed $3000000 at the beginning of 2005. The annual interest rate is 12%. Each year, interest is calculated on the balance at the beginning of the year and added to the balance owing. The debt is to be repaid by equal annual repayments of $480000, with the first repayment being made at the end of 2005. Let be the balance owing after the th repayment.nA n
26 52(i) Show that 3 10 1.12 4.8 10 1 1.12A
Initial loan is borrowed for 2 years 23000000 1.12
1480000 1.121st repayment invested for 1 year4800002nd repayment invested for 0 years
principal plus interest instalments plus interestnA
22 3000000 1.12 480000 480000 1.12A
26 52 3 10 1.12 4.8 10 1 1.12A
![Page 106: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/106.jpg)
6(ii) Show that 10 4 1.12 nnA
![Page 107: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/107.jpg)
6(ii) Show that 10 4 1.12 nnA
Initial loan is borrowed for n years 3000000 1.12 n
![Page 108: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/108.jpg)
6(ii) Show that 10 4 1.12 nnA
Initial loan is borrowed for n years 3000000 1.12 n
1480000 1.12 n1st repayment invested for n – 1 years
![Page 109: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/109.jpg)
6(ii) Show that 10 4 1.12 nnA
Initial loan is borrowed for n years 3000000 1.12 n
1480000 1.12 n1st repayment invested for n – 1 years
2480000 1.12 n2nd repayment invested for n – 2 years
![Page 110: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/110.jpg)
6(ii) Show that 10 4 1.12 nnA
Initial loan is borrowed for n years 3000000 1.12 n
1480000 1.12 n1st repayment invested for n – 1 years
2480000 1.12 n2nd repayment invested for n – 2 years
1480000 1.122nd last repayment invested for 1 year
![Page 111: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/111.jpg)
6(ii) Show that 10 4 1.12 nnA
Initial loan is borrowed for n years 3000000 1.12 n
1480000 1.12 n1st repayment invested for n – 1 years
2480000 1.12 n2nd repayment invested for n – 2 years
1480000 1.122nd last repayment invested for 1 year480000last repayment invested for 0 years
![Page 112: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/112.jpg)
6(ii) Show that 10 4 1.12 nnA
Initial loan is borrowed for n years 3000000 1.12 n
1480000 1.12 n1st repayment invested for n – 1 years
2480000 1.12 n2nd repayment invested for n – 2 years
1480000 1.122nd last repayment invested for 1 year480000last repayment invested for 0 years
principal plus interest instalments plus interestnA
![Page 113: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/113.jpg)
6(ii) Show that 10 4 1.12 nnA
Initial loan is borrowed for n years 3000000 1.12 n
1480000 1.12 n1st repayment invested for n – 1 years
2480000 1.12 n2nd repayment invested for n – 2 years
1480000 1.122nd last repayment invested for 1 year480000last repayment invested for 0 years
principal plus interest instalments plus interestnA
2 13000000 1.12 480000 1 1.12 1.12 1.12n n nnA
![Page 114: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/114.jpg)
6(ii) Show that 10 4 1.12 nnA
Initial loan is borrowed for n years 3000000 1.12 n
1480000 1.12 n1st repayment invested for n – 1 years
2480000 1.12 n2nd repayment invested for n – 2 years
1480000 1.122nd last repayment invested for 1 year480000last repayment invested for 0 years
principal plus interest instalments plus interestnA
2 13000000 1.12 480000 1 1.12 1.12 1.12n n nnA
480000, 1.12,a r n n
![Page 115: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/115.jpg)
6(ii) Show that 10 4 1.12 nnA
Initial loan is borrowed for n years 3000000 1.12 n
1480000 1.12 n1st repayment invested for n – 1 years
2480000 1.12 n2nd repayment invested for n – 2 years
1480000 1.122nd last repayment invested for 1 year480000last repayment invested for 0 years
principal plus interest instalments plus interestnA
2 13000000 1.12 480000 1 1.12 1.12 1.12n n nnA
480000, 1.12,a r n n
13000000 1.12
1
nn a r
r
![Page 116: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/116.jpg)
480000 1.12 13000000 1.12
0.12
nn
nA
![Page 117: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/117.jpg)
480000 1.12 13000000 1.12
0.12
nn
nA
3000000 1.12 4000000 1.12 1n n
![Page 118: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/118.jpg)
480000 1.12 13000000 1.12
0.12
nn
nA
3000000 1.12 4000000 1.12 1n n
3000000 1.12 4000000 1.12 4000000n n
![Page 119: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/119.jpg)
480000 1.12 13000000 1.12
0.12
nn
nA
3000000 1.12 4000000 1.12 1n n
3000000 1.12 4000000 1.12 4000000n n
4000000 1000000 1.12 n
![Page 120: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/120.jpg)
480000 1.12 13000000 1.12
0.12
nn
nA
3000000 1.12 4000000 1.12 1n n
3000000 1.12 4000000 1.12 4000000n n
4000000 1000000 1.12 n
610 4 1.12 n
![Page 121: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/121.jpg)
480000 1.12 13000000 1.12
0.12
nn
nA
3000000 1.12 4000000 1.12 1n n
3000000 1.12 4000000 1.12 4000000n n
4000000 1000000 1.12 n
610 4 1.12 n
(iii) In which year will Weelabarrabak Shire Council make the final repayment?
![Page 122: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/122.jpg)
480000 1.12 13000000 1.12
0.12
nn
nA
3000000 1.12 4000000 1.12 1n n
3000000 1.12 4000000 1.12 4000000n n
4000000 1000000 1.12 n
610 4 1.12 n
(iii) In which year will Weelabarrabak Shire Council make the final repayment?
0nA
![Page 123: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/123.jpg)
480000 1.12 13000000 1.12
0.12
nn
nA
3000000 1.12 4000000 1.12 1n n
3000000 1.12 4000000 1.12 4000000n n
4000000 1000000 1.12 n
610 4 1.12 n
(iii) In which year will Weelabarrabak Shire Council make the final repayment?
0nA
610 4 1.12 0n
![Page 124: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/124.jpg)
480000 1.12 13000000 1.12
0.12
nn
nA
3000000 1.12 4000000 1.12 1n n
3000000 1.12 4000000 1.12 4000000n n
4000000 1000000 1.12 n
610 4 1.12 n
(iii) In which year will Weelabarrabak Shire Council make the final repayment?
0nA
610 4 1.12 0n
4 1.12 0n
![Page 125: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/125.jpg)
480000 1.12 13000000 1.12
0.12
nn
nA
3000000 1.12 4000000 1.12 1n n
3000000 1.12 4000000 1.12 4000000n n
4000000 1000000 1.12 n
610 4 1.12 n
(iii) In which year will Weelabarrabak Shire Council make the final repayment?
0nA
610 4 1.12 0n
4 1.12 0n
1.12 4n
![Page 126: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/126.jpg)
log 1.12 log 4n
![Page 127: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/127.jpg)
log 1.12 log 4n log1.12 log 4n
![Page 128: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/128.jpg)
log 1.12 log 4n log1.12 log 4n
log 4log1.12
n
12.2325075n
![Page 129: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/129.jpg)
log 1.12 log 4n log1.12 log 4n
log 4log1.12
n
12.2325075n
The thirteenth repayment is the final repayment which will occur at the end of 2017
![Page 130: 12X1 T04 02 Finance Formulas (2010)](https://reader033.vdocument.in/reader033/viewer/2022042516/55b60194bb61eb2f0a8b469a/html5/thumbnails/130.jpg)
log 1.12 log 4n log1.12 log 4n
log 4log1.12
n
12.2325075n
The thirteenth repayment is the final repayment which will occur at the end of 2017
Exercise 7B; 4, 6, 8, 10
Exercise 7C; 1, 4, 7, 9
Exercise 7D; 3, 4, 9, 11