# Question: section a interest and depreciation1andnbspandnbspandnbspandnbsp tara borrowed dollar15 600 over...

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Section A: Interest and Depreciation

**1** Tara borrowed $15 600 over 4 years at 16% p.a. simple interest to buy a car.

a) How much interest does Tara have to pay?

b) How much does she repay altogether?

c) What is Tara’s monthly payment?

**2** John purchased a wedding ring for his wife for $3500.

Use the formula to calculate the value of the ring after 15 years if it appreciates at a rate of 4.8% p.a. (Answer to the nearest $100)

**3 **Jason invests $5700 for 6 years at an interest rate of 12% p.a. compounded quarterly.

a) Use the formula to calculate the future value of Jason’s investment.

b) Calculate the total compound interest earned over the 6 years of this investment.

**4** ANZ shares paid a dividend yield of 3.8%. Reka had 450 shares with a market value of $23.00 each. Calculate the total dividend she received from the shares.

**5** A forklift is purchased for $23 500. Using a declining balance rate of 14% p.a. find (to the nearest dollar):

a) The salvage value of the forklift after 4 years.

b) The amount of depreciation in the 4^{th} year.