1.4 Financial applications of geometric sequences and series

1.4 Financial applications of geometric sequences and series Quiz

IB Maths: Applications and Interpretation HL: Quiz

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  1. 1. 3000 EUR is invested at 5% compounded annually for 4 years. Find the final value.

    • A. 3600.003600.00 EUR
    • B. 3828.843828.84 EUR
    • C. 3646.523646.52 EUR
    • D. 3060.453060.45 EUR

  2. 2. 2000 EUR is invested at a nominal 6% per year, compounded monthly, for 3 years. Find the final value.

    • A. 2393.362393.36 EUR
    • B. 2382.032382.03 EUR
    • C. 2360.002360.00 EUR
    • D. 16 294.5016\,294.50 EUR

  3. 3. A machine costing 18 000 EUR depreciates by 15% each year. Find its value after 3 years.

    • A. 9900.009900.00 EUR
    • B. 27 375.7527\,375.75 EUR
    • C. 9396.119396.11 EUR
    • D. 11 054.2511\,054.25 EUR

  4. 4. A nominal annual rate of 3.6% is compounded quarterly. What is the interest rate per quarter?

    • A. 3.6%3.6\%
    • B. 0.9%0.9\%
    • C. 0.3%0.3\%
    • D. 14.4%14.4\%

  5. 5. An investment of 10 000 AED is worth 11 000 AED after 5 years. Inflation is 2% per year. Find the real value of the 11 000 AED.

    • A. 9963.049963.04 AED
    • B. 11 000.0011\,000.00 AED
    • C. 12 144.8912\,144.89 AED
    • D. 10 000.0010\,000.00 AED

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