All mind maps topics

1.4 Financial applications of geometric sequences and seriesIB Maths: Applications and Interpretation SL: Mind map

What this mind map covers

  • Compound interest
  • Compounding
  • Depreciation
  • Real value
  • GDC solver
  • Exam tips

Exam questions on 1.4 Financial applications of geometric sequences and series

  1. Mia invests 5000 EUR in an account that pays 3% interest per year, compounded annually.
    Find the least number of complete years for the investment to exceed 7000 EUR.2 marks
  2. A car costs 24 000 EUR when new. Its value depreciates by 12% each year.
    Find the total fall in the value of the car over the first 5 years, as a percentage of its price when new. Give your answer to 3 significant figures.2 marks
  3. Karim deposits 8000 AED in a bank account that pays a nominal annual interest rate of 2.4%, compounded monthly. The average rate of inflation is 1.8% per year. Use your GDC finance application where helpful.
    Find the value of the account after 6 years, to the nearest cent.3 marks
See the full worksheet

Written by the Exaim team, led by Shaun Daswani (Head of Upper Secondary, Improve ME Institute; MSc Financial Mathematics, Imperial College London; BSc, UCL) and Jason Daswani (operational lead, Improve ME Institute; LSE).