Practise IB Maths AI HL 1.4 through questions that extend financial models to annuities, changing periods, parameters and threshold decisions.
Give your answers in parts (a), (d)(i), (e) and (f) to the nearest dollar.
Daisy invested 37000 Australian dollars (AUD) in a fixed deposit account with an annual interest rate of 6.4 % compounded quarterly.
Calculate the value of Daisy's investment after 2 years.
EITHER
N=2
P V=-37000
I %=6.4
P / Y=1
C / Y=4
Note: Award M1 for an attempt to use a financial app in their technology, award A1 for all entries correct.
OR
N=8
P V=-37000
I %=6.4
P / Y=4
C / Y=4
Note: Award M1 for an attempt to use a financial app in their technology, award A1 for all entries correct.
OR
FV=37000×(1+100×46.4)4×2
Note: Award M1 for substitution into compound interest formula, (A1) for correct substitution.
= 42010 AUD
Note: Award (M1)(A1)A0 for unsupported 42009.87.
After m months, the amount of money in the fixed deposit account has appreciated to more than 50000 AUD.
Find the minimum value of m, where m∈N.
EITHER
P V=-37000
F V=50000
I %=6.4
P / Y=1
C / Y=4
Note: Award M1 for an attempt to use a financial app in their technology, award A1 for all entries correct. The final mark can still be awarded for the correct number of months (multiple of 3 ).
OR
P V=-37000
F V=50000
I %=6.4
P / Y=4
C / Y=4
Note: Award M1 for an attempt to use a financial app in their technology, award A1 for all entries correct.
OR
Note: Award M1 for the correct inequality, 50000 and substituted compound interest formula. Allow an equation. Award A1 for correct substitution.
THEN
Note: Award A1 for rounding their m to the correct number of months. The final answer must be a multiple of 3 . Follow through within this part.