CS.SA 2012 l\<f.

2thenutics 6200- 1 Section I 2nd II

Ester sets up a savings policy for herself in order to save for a deposit to buy a car.
She invests $250 at the beginning of every month. The savings policy earns 8.4%
per annum and is compounded monthly.

The policy matures at the end of the month of her fi nal investment, 5 years after
her first investment.

(i) Show that the value of the first investment is $379.93. 2

(ii) Calculate the total value of Ester's savings policy after 5 years. 3
CSSA_200.5_l\{2them2tics_T ri2l_P2per

On I July 2005, Nadia invested $12 000 in a bank account that paid interest
at a rate of 6% p.a., compounded annually.

(i) How much would be in the account after the payment of interest on z
l July 2015 if no additional deposits were made?

(ii) In fact Nadia added Sl 000 lo her account on l July each year, 4
beginning on l July 2006. After the payment of interest and her
deposit on l July 2015, how much was in her account?

( iii) Nadia's mend Ana deposited $12 000 in an account at another 2

bank on 1 July 2005 and made no further deposit. On 1July2015,
the balance of her account was $35 639.36. What was the annual
rate of compound interest paid on Ana's account?
eppingboys2u2008

Bernice contributes to a superannuation fund. She contributes $250

at the start of every quarter. The investment pays 8%pa interest,
compounding quarterly. She continues making contributions for 30 years.
(i) How much does she contribute altogether? 1

(ii) What is the value of her initial $250 investment at the end of the 1
30 years?
(iii) Find the total value of her superannuation. 3
(iv) How much of her superannuation lump sum is interest? l

G irr2ween 2016 2 U T ri::l!s

1
On the ls January each year Simone invests $M annually into a superannuation account. The
account gives interest at a rate of 5% per annum, compounded annually.

(i) Show that the value of her investment at the end of 2 years was
A 2 = 2.152SM dollars. 2

(ii) Show that the value of her investment at the end of n years was
An= 21(1.osn - l )M dollars. 2

(iii) Simone wants to retire after 30 years with a million dollars in her superannuation
account. Find the amount that she must invest into her account on the Js1 January
each year to reach her goal. Answer to the nearest cent. 2
eppingboys2u2012

Sam was born on t he 1st of January. On the day he was born, his father opened a 3
trust account by depositing $220. Each year on Sam's birthday, his father deposited
$220 into t his t rust account and continued to do this up to and incl uding his 20th
birthday. W hen Sam t urned 21, his father collected the t otal amount and presented
it to hi m. This trust account paid an interest of 6% pa compounded every year. How
much did Sam receive on his 21st bi rt hday?