need help with Q4, Q7 in 2013 further exam 1 -- business.
For Question 4:
The total amount paid is the amount of each payment multiplied by the number of payments, plus the deposit: \(A=36\times400+3000=17400\).
The total amount of interest paid is the amount in excess of the purchase price: \(I=A-PP=17400-15500=2400\).
The interest rate can be then calculated using the simple interest equation (note that 36 months = 3 years and that interest can only be paid on the loan amount which is the amount
remaining after the deposit has been paid \(P=15000-3000=12000\)):
So the answer is D.
For Question 7:
The graph is linear, which indicates simple interest. At 0 years, the investment value is $1000 (i.e. the principal investment amount). After 1 year, the investment amount is $1050. Thus, \(1050-1000=50\) is the amount of interest earned in 1 year. From this information, we can find the interest rate:
The second investment has $600 of interest earned in 8 years, at the same interest rate (5% p.a. simple interest):
So the answer is C.