1. 1
   A bank account pays simple interest at a rate of 4% per year. Aisha deposits 500 dollars into the account.

   (a)

   Find the simple interest earned after 3 years.

   [1 mark]

   • A20 dollars
   • B40 dollars
   • C60 dollars
   • D80 dollars

   (b)

   Find the total amount in the account after 3 years.

   [1 mark]

   • A540 dollars
   • B560 dollars
   • C580 dollars
   • D600 dollars

   (c)

   What annual simple interest rate would be needed to earn 100 dollars interest in 5 years on the same 500 dollar deposit?

   [1 mark]

   • A2%
   • B4%
   • C5%
   • D8%

   Total for question 1: 3 marks

2. 2
   Ben invests 800 dollars in an account paying compound interest at 5% per year.

   (a)

   Find the value of Ben's investment after 2 years.

   [2 marks]

   (b)

   Find the total compound interest earned after 2 years.

   [2 marks]

   Total for question 2: 4 marks

3. 3
   A car is bought new and depreciates in value by 12% each year. After one year of depreciation its value is 4400 dollars.

   (a)

   Find the original price of the car when new.

   [3 marks]

   (b)

   Find the value of the car after a second year of depreciation at the same rate, giving your answer to the nearest dollar.

   [3 marks]

   Total for question 3: 6 marks

4. 4
   A town's population is currently 12000 and is growing exponentially at a rate of 3% per year, following the model $y=ab^x$ where $y$ is the population after $x$ years. A neighbouring town has a population of 15000 and is decreasing at a rate of 2% per year, following the same type of model with a negative growth rate.

   (a)

   State the values of $a$ and $b$ for the growth model $y=ab^x$ describing the town's population, and use it to predict the population after 4 years, giving your answer to the nearest whole number.

   [4 marks]

   (b)

   Find the neighbouring town's population after 4 years, to the nearest whole number.

   [4 marks]

   (c)

   Using your results for year 4 from parts (a) and (b), determine after how many whole years the growing town's population first exceeds the shrinking town's population. Show the populations for year 5 to justify your answer.

   [5 marks]

   Total for question 4: 13 marks

End of questions