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AI AA SL Core Diagnostic Test Ch. 1 3-5 Suggested Solutions
AI AA SL Core Diagnostic Test Ch. 1 3-5 Suggested Solutions
AI AA SL Core Diagnostic Test Ch. 1 3-5 Suggested Solutions
AI AA HL Core
November 3 2020
Diagnostic test of Ch. 1 & 3-5 (& Ch. 11 & 4 in HL 2)
Deadline: November 10
1. Consider the table of values below.
Yes, whenever the variable x increases by 1 unit, the variable y decreases by 3 units
The 𝑦-intercept can be found directly by looking at the graph (or by inspection of the table
with data): when 𝑥 = 0, 𝑦 = 20; hence the 𝑦-intercept is 20.
The gradient 𝑚 of the graph can obtained with the formula
𝑦 −𝑦
𝑚 = 𝑥2 −𝑥1
2 1
We use the gradient-intercept form, 𝑦 = 𝑚𝑥 + 𝑐, and with the values of 𝑐 (20) and 𝑚 (−3)
from b) and c) respectively we obtain:
𝑦 = −3𝑥 + 20
2. The speed of a pebble thrown from the top of a cliff is shown below.
a) Find the gradient and y-intercept of the line, and explain what these value mean.
In this case m is the rate with which the speed increases per second (i.e. acceleration),
10 𝑚 𝑠 −2 .
b) Find the equation of the line.
We use the gradient-intercept form, 𝑦 = 𝑚𝑥 + 𝑐, and with the values of 𝑐 (5) and 𝑚 (10)
from a) we obtain:
𝑦 = 10𝑥 + 5
3.
a) Referring to the graph below, find in general form the equation of line 2.
Line 1 and 2 are parallel, i.e. they have the same gradient.
3
Line 1 has gradient 2, and so has thus line 2.
Furthermore, line 2 goes through the point (6, 3). We can therefore use the point-gradient
form of a straight line
𝑦 − 𝑦1 = 𝑚(𝑥 − 𝑥1 )
to derive its equation:
3 3
𝑦 − 3 = 2 (𝑥 − 6) ⇔ 𝑦 − 3 = 2 𝑥 − 9 ⇔
3
𝑦 = 2𝑥 − 6
3𝑥 − 2 ∙ 0 = 12 ⇔ 3𝑥 = 12 ⇔
𝑥=4
We set out the point (0, 10) in the Cartesian plane and then derive a couple of points by
acknowledging that when x increases by 3 units the value of y decreases by 5 units.
Or, we find the 𝑥-intercept, the point where the graph intersects the 𝑥-axis. In that point 𝑦 =
5
0. Substituting y for 0 in either 5𝑥 + 3𝑦 = 30 or 𝑦 = 10 − 3 𝑥 and solving for 𝑥 we find it. I
choose the first:
5 ∙ 𝑥 + 3 ∙ 0 = 30 ⇔ 5𝑥 = 30 ⇔
𝑥=6
So, we can set out the points (0, 10) and (6, 0) in the Cartesian plane and draw a straight line
through them:
5. Find, in general form, the equation of the line which is perpendicular to 2𝑥 + 5𝑦 = 7 and
passes through (1, −1).
Two lines are perpendicular if the following holds for their gradients, 𝑚1 and 𝑚2 :
𝑚1 𝑚2 = −1
We can derive the gradient m for our line above by rearranging it to gradient-intercept form:
7−2𝑥
2𝑥 + 5𝑦 = 7 ⇔ 5𝑦 = 7 − 2𝑥 ⇔ 𝑦 = ⇔
5
7 2
𝑦 = 5− 5𝑥
2
Hence 𝑚 = − 5
From the condition above we can find the gradient of the perpendicular:
2
(− 5) 𝑚𝑝𝑒𝑟𝑝 = −1 ⇔
5
𝑚𝑝𝑒𝑟𝑝 = 2
Because we know that the perpendicular passes through (1, −1) we can use the point-gradient
form, 𝑦 − 𝑦1 = 𝑚(𝑥 − 𝑥1 ), to derive its equation:
5 5 5
𝑦 − (−1) = 2 (𝑥 − 1) ⇔ 𝑦 + 1 = 2 𝑥 − 2 ⇔
5 7
𝑦 = 2𝑥 − 2
6. Find the equation of the perpendicular bisector of 𝑃(−3, 2) and 𝑄(5, −6).
By definition, the perpendicular bisector of the line segment [𝑃𝑄] is going through the
midpoint of [𝑃𝑄].
Application of the midpoint formula:
𝑥1 + 𝑥2 𝑦1 + 𝑦2
(𝑥𝑚 , 𝑦𝑚 ) = ( , )
2 2
gives us
(−3) + 5 2 + (−6) 2 −4
(𝑥𝑚 , 𝑦𝑚 ) = ( , ) = ( , ) = (1, −2)
2 2 2 2
Furthermore, two straight lines are perpendicular if the following holds for their gradients, 𝑚1
and 𝑚2 :
𝑚1 𝑚2 = −1
We can calculate the gradient of [𝑃𝑄] by application of the gradient formula:
𝑦2 −𝑦1
𝑚=
𝑥2 −𝑥1
Hence,
(−6) − 2 −8
𝑚[𝑃𝑄] = = = −1
5 − (−3) 8
Now, taking advantage of the perpendicularity condition (above):
𝑚[𝑃𝑄] 𝑚𝑝𝑒𝑟𝑝 = −1 ⇒
(−1)𝑚𝑝𝑒𝑟𝑝 = −1 ⇔ 𝑚𝑝𝑒𝑟𝑝 = 1
Knowing the gradient of the perpendicular and one point lying on it, (𝑥𝑚 , 𝑦𝑚 ), we can apply
the point gradient formula to derive the equation of the perpendicular bisector:
𝑦 − 𝑦1 = 𝑚(𝑥 − 𝑥1 ) ⇒
𝑦 − (−2) = 1 ∙ (𝑥 − 1) ⇔ 𝑦 + 2 = 𝑥 − 1 ⇔
𝑦 =𝑥−3
7. A machine tests solar batteries for faults. A working battery takes 2 minutes to test, but a
faulty battery requires 5 minutes to detect and repair. In an 83 minute session, 37 batteries
were tested. How many were faulty?
Let 𝑥 represent the number of faulty batteries during the 83 minute session, and 𝑦 represent
the number of working batteries. Then,
𝑥 + 𝑦 = 37
{
2𝑥 + 5𝑦 = 83
Using my calculator to solve this system of simultaneous linear equations, I obtain
𝑥 = 34 ; 𝑦 = 3
Thus, 3 faulty batteries were encountered during the 83 minute session.
8. Simplify:
a) (1 + √2)(2 + √2)
2
(1 + √2)(2 + √2) = 2 + √2 + 2√2 + (√2) = 2 + 3√2 + 2 = 𝟒 + 𝟑√𝟐
2
b) (6 − 5√2)
2 2
(6 − 5√2) = 62 + (−5√2) + 2 ∙ 6 ∙ (−5√2) = 36 + 25 ∙ 2 − 60√2 =
36 + 50 − 60√2 = 𝟖𝟔 − 𝟔𝟎√𝟐
c) −(−3)3
−(−3)3 = −(−27) = 𝟐𝟕
d) 30 − 3−1
1 𝟐
30 − 3−1 = 1 − 3 = 𝟑
36𝑔3 ℎ5
e) 12ℎ2
36𝑔3 ℎ5 36 ℎ5
= 12 ℎ2 𝑔3 = 𝟑𝒉𝟑 𝒈𝟑
12ℎ2
2
5(𝑥 2 𝑦)
f) (5𝑥 2 )2
2 2
5(𝑥 2 𝑦) 5(𝑥 2 ) 𝑦2 5𝑥 4 𝑦 2 5 𝑥4 5 𝒚𝟐
(5𝑥 2 )2
= = = 25 𝑥 4 𝑦 2 = 25 ∙ 1 ∙ 𝑦 2 =
52 (𝑥 2 )2 25𝑥 4 𝟓
9. Write without brackets or negative exponents:
a) 3−3
1 𝟏
3−3 = 33 = 𝟐𝟕
b) 𝑥 −1 𝑦
1 𝒚
𝑥 −1 𝑦 = 𝑥 𝑦 = 𝒙
c) 2(𝑎𝑏)−2
1 1 𝟐
2(𝑎𝑏)−2 = 2 ∙ (𝑎𝑏)2 = 2 ∙ 𝑎2 𝑏2 = 𝒂𝟐 𝒃𝟐
125𝑎
b) 5𝑏
𝑎
125𝑎 (53 ) 53𝑎
= = = 𝟓𝟑𝒂−𝒃
5𝑏 5𝑏 5𝑏
c) 811−𝑥 ∙ 91−2𝑥
811−𝑥 ∙ 91−2𝑥 = (34 )1−𝑥 (32 )1−2𝑥 = 34(1−𝑥) 32(1−2𝑥) = 34−4𝑥 32−4𝑥 = 34−4𝑥+2−4𝑥 = 𝟑𝟔−𝟖𝒙
3
11. Write with an integer denominator.
√3+2
12. At a particular moment, Earth is 4.3 ∙ 109 km from Neptune and 1.5 ∙ 109 km from
Saturn. How much further away – in km – is Neptune than Saturn?
3.74∙103 3.74
𝑡 = 1.91∙108 = 1.91 ∙ 103−8 ≈ 1.96 ∙ 10−5 𝑠 = 19.6 ∙ 10−6 𝑠 = 𝟏𝟗. 𝟔 𝝁𝒔
2.1∙106 2.1
𝑡= = ∙ 106−8 ≈ 1.1 ∙ 10−2 𝑠 = 11 ∙ 10−3 𝑠 = 𝟏𝟏 𝒎𝒔
1.91∙108 1.91
14. Solve for 𝑥 (some of them you need technology for, but solve as many you can without):
2
a) 3(𝑥 − √2) = 6
2
⇔ (𝑥 − √2) = 2 ⇔ 𝑥 − √2 = ±√2 ⇔ 𝑥 = √2 ± √2 ⇔ 𝒙𝟏 = 𝟎 ; 𝒙𝟐 = 𝟐√𝟐
b) −(𝑥 + 3)(2𝑥 − 7) = 0
Using the null factor law:
𝑥 + 3 = 0 ⇔ 𝒙𝟏 = −𝟑
𝟕
2𝑥 − 7 = 0 ⇔ 𝒙𝟐 = 𝟐
⇔ −(2𝑥 2 − 7𝑥 + 6𝑥 − 21) = 0 ⇔ 2𝑥 2 − 7𝑥 + 6𝑥 − 21 ⇔ 2𝑥 2 − 𝑥 − 21 = 0
𝒒𝒖𝒂𝒅𝒓𝒂𝒕𝒊𝒄 𝒇𝒐𝒓𝒎𝒖𝒍𝒂 𝟕
⇔ 𝒙𝟏 = 𝟐 ; 𝒙𝟐 = −𝟑
c) (1 − 2𝑥)(4 − 𝑥) = 39
𝑞𝑢𝑎𝑑𝑟𝑎𝑡𝑖𝑐 𝑓𝑜𝑟𝑚𝑢𝑙𝑎
⇔ 4 − 𝑥 − 8𝑥 + 2𝑥 2 = 39 ⇔ 2𝑥 2 − 9𝑥 − 35 = 0 ⇔
𝟓
𝒙𝟏 = 𝟕 ; 𝒙𝟐 = − 𝟐
d) 5𝑥 = 2 − 3𝑥 2
𝑞𝑢𝑎𝑑𝑟𝑎𝑡𝑖𝑐 𝑓𝑜𝑟𝑚𝑢𝑙𝑎 𝟏
⇔ 3𝑥 2 + 5𝑥 − 2 = 0 ⇔ 𝒙𝟏 = 𝟑 ; 𝒙𝟐 = −𝟐
e) (𝑥 − 1)−2 = 4
1 1 1 1
⇔ (𝑥−1)2
= 4 ⇔ 4(𝑥 − 1)2 = 1 ⇔ (𝑥 − 1)2 = 4 ⇔ 𝑥 − 1 = ±√4 ⇔ 𝑥 − 1 = ± 2 ⇔
𝟑 𝟏
𝒙𝟏 = 𝟐 ; 𝒙𝟐 = 𝟐
1 3
f) = −2
𝑥 𝑥2
1 3 2𝑥 2 1 3−2𝑥 2 𝑐𝑟𝑜𝑠𝑠−𝑚𝑢𝑙𝑡𝑖𝑝𝑙𝑖𝑐𝑎𝑡𝑖𝑜𝑛
⇔ = 𝑥2 − ⇔ = ⇔ 𝑥 2 = 𝑥(3 − 2𝑥 2 ) ⇔
𝑥 𝑥2 𝑥 𝑥2
𝑥 2 = 3𝑥 − 2𝑥 3 ⇔ 2𝑥 3 + 𝑥 2 − 3𝑥 = 0 ⇔ 𝑥(2𝑥 2 + 𝑥 − 3) = 0
This suggests that 𝑥 = 0 is a solution, but it is not because we can not divide by 0 (testing of
the original equation)!
However, the original equation has solutions for values of 𝑥 for which
2𝑥 2 + 𝑥 − 3 = 0
Using the quadratic formula we obtain:
𝟑
𝒙𝟏 = 𝟏 ; 𝒙𝟐 = − 𝟐
g) 𝑥 2 (𝑥 2 − 3) = 64 − 6𝑥 3 − 14𝑥
⇔ 𝑥 4 − 3𝑥 2 = 64 − 6𝑥 3 − 14𝑥 ⇔ 𝑥 4 + 6𝑥 3 − 3𝑥 2 + 14𝑥 − 64 = 0
It is (probably) impossible to solve this equation algebraically, so I use the polynomial solver
function on my calculator to obtain:
𝒙𝟏 ≈ 𝟏. 𝟖𝟒 ; 𝒙𝟐 ≈ −𝟔. 𝟗𝟐 ; 𝒙𝟑 ≈ −𝟎. 𝟒𝟔 + 𝟐. 𝟐𝟎𝒊 ; 𝒙𝟒 ≈ −𝟎. 𝟒𝟔 − 𝟐. 𝟐𝟎𝒊
3
h) 𝑥 3 = √𝑥 − 5
It is (probably) impossible to solve this equation algebraically, so I use my graphics
calculator. I rearrange the equation to
3
𝑥 3 − √𝑥 + 5 = 0,
3
graph 𝑦 = 𝑥 3 − √𝑥 + 5 and search for the root(s). This yields 𝒙 ≈ −𝟏. 𝟖𝟒.
IMPORTANT: When you draw graphs, make sure that your calculator is not in Complex
mode (but in Real mode): else it will not be able to draw graphs for negative 𝑥-values for
1
3
some functions, e.g. 𝑦 = √𝑥 = 𝑥 3 .
i) 10 ∙ 2𝑥−1 = 35
35 7
⇔ 2𝑥−1 = 10 ⇔ 2𝑥−1 = 2
𝐥𝐨𝐠 𝟕
𝒙 = 𝐥𝐨𝐠 𝟐 ≈ 𝟐. 𝟖𝟏
You can of course also solve this equation using your graphics calculator. For example,
- By rearranging the equation to 10 ∙ 2𝑥−1 − 35 = 0, drawing of the graph of 𝑦 = 10 ∙
2𝑥−1 − 35 and searching for the root(s)
- By drawing of the graphs of 𝑦 = 10 ∙ 2𝑥−1 and 𝑦 = 35 and searching for the
intersection point(s)
But then it will be impossible to find exact solutions.
2𝑥 2 − 3𝑥 + 𝑚 = 0 ⇒
𝑎 = 2 ; 𝑏 = −3 ; 𝑐 = 𝑚
Hence,
∆= (−3)2 − 4 ∙ 2 ∙ 𝑚 = 9 − 8𝑚
15. Find the sum of the first 12 terms of the following number sequences:
a) 3, 9, 15, 21, …
This number seqence has a common difference 𝑑 = 6 and is thus arithmetic with 𝑢1 = 3.
We want to calculate 𝑆12.
There are two formulae for calculating 𝑆𝑛 for an arithmetic series:
𝑛 𝑛
𝑆𝑛 = 2 (𝑢1 + 𝑢𝑛 ) ; 𝑆𝑛 = [2𝑢1 + (𝑛 − 1)𝑑]
2
b) 24, 12, 6, 3, …
1
This number seqence has a common ratio 𝑟 = 2 and is thus geometric with 𝑢1 = 24.
The first one is better/easier to use when 𝑟 > 1, and the second one is better/easier to use
when 𝑟 < 1 (then both numerator and denominator becomes > 0). We therefore use the
second one in this case:
1 12 1
24 (1 − (2) ) 24 (1 − 4096) 4095 𝟏𝟐𝟐𝟖𝟓
𝑆12 = = = 48 ∙ = ≈ 𝟒𝟖. 𝟎
1 1 4096 𝟐𝟓𝟔
1−2 2
16. Consider the number sequence 5, 9, 11, 12, 15, 19. Find:
a) 𝑢2 b) 𝑢6 c) 𝑆4
a) By inspection: 𝒖𝟐 = 𝟗
b) By inspection: 𝒖𝟔 = 𝟏𝟗
c) 𝑆4 = 𝑢1 + 𝑢2 + 𝑢3 + 𝑢4 = 5 + 9 + 11 + 12 = 𝟑𝟕
b) Find 𝑢1 and 𝑑.
𝑢1 = 68 − 5 ∙ 1 = 68 − 5 = 𝟔𝟑
𝑑 = −𝟓 (see a))
c) Find the 37th term of the sequence.
d) State the first term of the sequence which is less than −200.
4
18. Evaluate the first five terms of the sequence: {𝑛+2}.
4 𝟒
𝑢1 = 1+2 = 𝟑
4 4
𝑢2 = 2+2 = 4 = 𝟏
4 𝟒
𝑢3 = =
3+2 𝟓
4 4 𝟐
𝑢4 = 4+2 = 6 = 𝟑
4 𝟒
𝑢5 = 5+2 = 𝟕
19.
a) Find the general term of the arithmetic sequence with 𝑢7 = 31 and 𝑢15 = −17
There are two furmulae for calculating the sum of the terms of the first 𝑛 terms of an
arithmetic sequence:
𝑛 𝑛
𝑆𝑛 = 2 (𝑢1 + 𝑢𝑛 ) ; 𝑆𝑛 = [2𝑢1 + (𝑛 − 1)𝑑]
2
𝑢6 = 𝑢1 𝑟 6−1 = 24 ⇔
𝑢1 𝑟 5 = 24 (1)
From (1):
24 3
𝑢1 ∙ 25 = 24 ⇔ 𝑢1 = 32 = 4
The first one is better/easier to use when 𝑟 > 1, and the second one is better/easier to use
when 𝑟 < 1 (then both numerator and denominator becomes > 0). We therefore use the first
one in this case:
3
(215 −1) 3 𝟑
𝑆15 = 4 = 4 (32768 − 1) = 𝟒 ∙ 𝟑𝟐𝟕𝟔𝟕 ≈ 𝟐𝟒, 𝟓𝟕𝟓
2−1
The sum of an infinite geometric series, provided that ⌈𝑟⌉ < 1, is given by
1 𝑢
𝑆∞ = 1−𝑟
1.1 110 11∙10 10
The common ratio 𝑟 of this geometric series is − 1.21 = − 121 = − 11∙11 = − 11
23. Seve is training for a long distance walk. He walks for 10 km in the first week, then each
week thereafter he walks 500 m further than the previous week. If he continues this pattern for
a year, how far does Seve walk:
a) in the last week?
b) in total?
After the ball has been dropped it has travelled 3 m. According to the information given in the
text, the ball bounces up 3 ∙ 0.8 whereupon it falls down the same distance. The ball has now
bounced 3 + 2 ∙ 3 ∙ 0.8 m in total. Upon hitting the floor for the second time, it bounces up
(3 ∙ 0.8) ∙ 0.8 = 3 ∙ 0.82 m and travels the same distance when it falls to the floor again.
When hitting the floor for the third time the balls has travelled 3 + 2 ∙ 3 ∙ 0.8 + 2 ∙ 3 ∙ 0.82 m
in total.
The pattern will continue: 3 + 2 ∙ 3 ∙ 0.8 + 2 ∙ 3 ∙ 0.82 + 2 ∙ 3 ∙ 0.83 + 2 ∙ 3 ∙ 0.84 + ⋯
We can start by simplifying the infinite sum somewhat:
3 + 6 ∙ 0.8 + 6 ∙ 0.82 + 6 ∙ 0.83 + 6 ∙ 0.84 + ⋯
The series look geometric, but it is not – not quite. Why? Well, it is the first term – 3 which
”destroys” it for us. If we sum up all terms except the first we have an infinite geometric
series with 𝑢1 = 6 ∙ 0.8 = 4.8 and 𝑟 = 0.8. If we calculate the sum of this geometric series
and then add 3, we have the answer to the original question.
The sum of an infinite geometric series is given by
𝑢
1
𝑆∞ = 1−𝑟
The fact that the value of the photocopier decreases by a fixed percentage (26 %) every time
period (in this case: year) implies that we can describe the value of the photocopier after 𝑡
years with en exponential model:
𝑉(𝑡) = 𝑉0 𝑎𝑡 ,
where 𝑉0 is the inital value of the photocopier, 𝑎 is the multiplier, and 𝑉(𝑡) is the value after
𝑡 years.
The multiplier 𝑎 is given by
% change per time period
𝑎 =1+ 100
In our case,
−26
𝑎 = 1 + 100 = 1 + (−0.26) = 0.74
26. $12,500 is invested in an account which pays 4.25 % p.a. interest. Find the value of the
investment after 5 years if the interest is compounded
a) half-yearly
The fact that the value of the investment increases by a fixed percentage during a given time
period means that we can decscribe the value of the investment after 𝑡 time periods with an
exponential model:
𝑉(𝑡) = 𝑉0 𝑎𝑡 ,
where 𝑉(𝑡) is the value of the investment after 𝑡 time periods, 𝑉0 is the initial value of the
investment, and 𝑎 is the multiplier.
The interest rate is 4.25 % per year. The interest is compounded half-yearly, however, which
4.25
means the the interest rate is = 2.125 % per half year.
2
Hence,
2.125
𝑎 =1+ = 1.02125
100
4.25
If the interest is compounded monthly, the interest rate per month becomes ≈ 0.3542 %
12
and the multipler becomes
0.3542
𝑎 =1+ ≈ 1.003542
100
27. Four years ago, Chelsea invested some money in an account paying 6.5 % p.a. interest
compounded quarterly. There is currently $6,212.27 in the account. How much did Chelsea
invest originally?
The fact that the value of the investment increases by a fixed percentage during a given time
period means that we can decscribe the value of the investment after 𝑡 time periods with an
exponential model:
𝑉(𝑡) = 𝑉0 𝑎𝑡 ,
where 𝑉(𝑡) is the value of the investment after 𝑡 time periods, 𝑉0 is the initial value of the
investment, and 𝑎 is the multiplier.
The interest rate is 6.5 % per year. The interest is compounded quarterly, however, which
6.5
means the the interest rate is = 1.625 % per quarter.
4
Hence,
1.625
𝑎 =1+ = 1.01625
100
28. Frederik invests $5,000 at 5.8 % p.a. compounded monthly. Hiow long will it take to
amount to $12,000?
The fact that the value of the investment increases by a fixed percentage during a given time
period means that we can decscribe the value of the investment after 𝑡 time periods with an
exponential model:
𝑉(𝑡) = 𝑉0 𝑎𝑡 ,
where 𝑉(𝑡) is the value of the investment after 𝑡 time periods, 𝑉0 is the initial value of the
investment, and 𝑎 is the multiplier.
The interest rate is 5.8 % per year. The interest is compounded monthly, however, which
5.8 58
means the the interest rate is = 120 % per month.
12
Hence,
58
120 58 12000 58 12058
𝑎 =1+ = 1 + 12000 = 12000 + 12000 = 12000
100
The value of the investment after 𝑡 time periods, in this case 𝑡 months, is given by:
12058 𝑡 12058 𝑡 12,000 12058 𝑡 12
𝑉(𝑡) = 12,000 = 5,000 ∙ (12000) ⇔ (12000) = ⇔ (12000) =
5,000 5
12
12058 𝑡 12 12058 12 log
5
log (12000) = log ⇔ 𝑡 log 12000 = log ⇔ 𝑡= 12058 ≈ 182 𝑚𝑜𝑛𝑡ℎ𝑠 ≈ 𝟏𝟓. 𝟏 𝒚𝒆𝒂𝒓𝒔
5 5 log
1200
29. Vijay deposits 200,000 rupees in an account that compounds interest half-yearly. 6 years
later, the account has the balance 250,680 rupees. Calculate the annual rate of interest.
The fact that the value of the investment increases by a fixed percentage during a given time
period means that we can decscribe the value of the investment after 𝑡 time periods with an
exponential model:
𝑉(𝑡) = 𝑉0 𝑎𝑡 ,
where 𝑉(𝑡) is the value of the investment after 𝑡 time periods, 𝑉0 is the initial value of the
investment, and 𝑎 is the multiplier.
The interest compounds half-yearly, i.e. a time period is 6 months. The duration of Vijay’s
investment is 6 years=12 half-years.
With the data given in the text we obtain:
250,680
𝑉(12) = 250,680 = 200,000 ∙ 𝑎12 ⇔ 𝑎12 = 200,000 ⇔
1
250,680 12
𝑎= ± (200,000 ) ≈ 1.01900
With 𝑎 = 1.01900 we obtain a % change per time period, in this case half-year, of 1.90 %.
The annual interest is therefore 1.90 ∙ 2 = 𝟑. 𝟖𝟎 %.
30. A competition offers three options for the first prize, each of which pays the winner a
monthly sum for 24 months:
Option 1: $8,000 per month
Option 2: $1,000 in the first month, and then each succssive month pays $600 more than the
previous month
Option 3: $500 in the first month, and then each successive month pays 20 % more than the
previous month
a) Calculate the total prize value for Option 1.
Month 1: $ 1,000
Month 2: $ 1,600
Month 3: $ 2,200
c) For Option 2, calculate the total amount won over the 24 month period
Because we don’t know the last term (although we can easily calculate it) the second formula
is most practical in this case:
24
𝑆24 = [2 ∙ 1,000 + (24 − 1) ∙ 600] = 12 ∙ [2,000 + 23 ∙ 600] = $ 𝟏𝟖𝟗, 𝟔𝟎𝟎
2
d) For Option 3, write down the amount won in each of the first three months.
Month 1: $ 500
Month 2: 500 ∙ 1.2 = $ 𝟔𝟎𝟎
Month 3: (500 ∙ 1.2) ∙ 1.2 = 500 ∙ 1.22 = $ 𝟕𝟐𝟎
e) For Option 3, calculate the total amount of won over the 24 month period.
𝑆24 = 500 + 500 ∙ 1.2 + 500 ∙ 1.22 + 500 ∙ 1.23 + ⋯ + 500 ∙ 1.219
This is a geometric series with common ratio 𝑟 = 1.2, 𝑢1 = 500 and 𝑛 = 24.
There are two formulae for calculating 𝑆𝑛 for a geometric series:
𝑢1 (𝑟 𝑛 −1) 𝑢1 (1−𝑟 𝑛 )
𝑆𝑛 = ; 𝑆𝑛 =
𝑟−1 1−𝑟
Because |𝑟| = 1.2 > 1 it is more practical to use the second formula.
500(1.224 − 1) 500
𝑆24 = = (1.224 − 1) = 2,500(1.224 − 1) ≈ $ 𝟏𝟗𝟔, 𝟐𝟒𝟐
1.2 − 1 0.2
Option 3.
g) The amount won in the first month under Option 3 is to be altered so that the total prize
over 24 months is $250,000. Calculate the new initial amount, giving your answer to the
nearest cent.
Rearranging the formula for the sum of a geometric sequence we used in e):
𝑢1 (𝑟 𝑛 −1) 𝑆𝑛 (𝑟−1)
𝑆𝑛 = ⇔ 𝑆𝑛 (𝑟 − 1) = 𝑢1 (𝑟 𝑛 − 1) ⇔ 𝑢1 =
𝑟−1 𝑟 𝑛 −1