Connect the ideas
Identify the principal, rate base, timing and complete cash flows before calculating.
Simple interest uses the original principal; compound interest repeatedly updates the balance.
For nominal compounding, periodic rate=r/m and number of periods=mt.
Present value reverses growth by division; a minimum deposit is rounded upward to cents.
Compare effective annual growth and net balances after supplied fees and tax.
Share profit includes purchase/sale costs and supplied dividends; an ROI needs a stated base and period.
Credit comparisons need deposits, all repayments and fees, not just an advertised monthly payment.
Real purchasing-power growth uses a ratio of growth and inflation factors; every conclusion is conditional on the model.
Practice tests
Complete each paper and show your working.
Investing and borrowing — Practice test 1
10 questions · 56 marks · 70 minutes · Scientific calculator
Investing and borrowing — Practice test 2
10 questions · 57 marks · 70 minutes · Scientific calculator
Investing and borrowing — Applications test
10 questions · 59 marks · 70 minutes · Scientific calculator
Investing and borrowing — Reasoning and model checks
10 questions · 59 marks · 70 minutes · Scientific calculator
Investing and borrowing — Extended applications
10 questions · 60 marks · 70 minutes · Scientific calculator
