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