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3. section a interest and depreciation1andnbspandnbspandnbspandnbsp tara borrowed dollar15 600 over...

# 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 4th year.

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