Financial mathematics — Topic Review | Year 12

QUICK RECAP

Connect the ideas

Match the interest period to the payment period before choosing $n$ .

Draw the cash-flow timeline: initial money, beginning/end payments, and final measurement date.

Keep loan debt, offset savings, sinking funds, fees and taxes as distinct quantities.

Savings use future-value annuity factors; income and loan repayments use present-value factors.

Use unrounded intermediate balances unless a question specifies cent-by-cent rounding.

Find a reduced final payment before calculating total loan interest.

Compare actual stated cash flows and model assumptions, not only an advertised rate or repayment.

Complete each paper and show your working.

Financial mathematics — practice test 1
10 questions · 60 marks · 75 minutes · Technology-assisted
A balanced first paper covering investment growth, saving, income, loan balances and stated borrowing costs.
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Financial mathematics — practice test 2
10 questions · 60 marks · 75 minutes · Technology-assisted
Practice with reverse calculations, stepped contributions and a changing-rate loan.
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Financial mathematics — practice test 3
10 questions · 60 marks · 75 minutes · Technology-assisted
Payment timing, numerical rate solving and the effect of borrowing fees.
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Financial mathematics — practice test 4
10 questions · 60 marks · 75 minutes · Technology-assisted
Explain modelling errors and adapt recurrences to missed payments, changing rates and offsets.
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Financial mathematics — practice test 5
10 questions · 60 marks · 75 minutes · Technology-assisted
Use multi-stage savings, retirement and loan models with full supplied assumptions.
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Financial mathematics — practice test 6
10 questions · 60 marks · 75 minutes · Technology-assisted
A harder synthesis paper: reverse models, changing conditions, cash-flow cost rates and refinancing.
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