MBF3C WS 8.1 Simple Interest NAME:

MBF3C WS 8.2 Simple vs Compound Interest

MBF3C WS 8.3 Compound Interest

MBF3C WS 8.4 Present Value

MBF3C WS 8.5 Changing Conditions on Compound Interest

MBF3C WS 8.6 Introduction to Credit Cards

MBF3C WS 8.7 Obtaining a Vehicle

A new SUV is listed at $46 095 plus taxes. You arrange to buy it after putting down a $5 000 down

payments and financing the rest at 3.9%/a compounded monthly for 4 years. How much do you have

to finance in order to purchase the SUV?

If your monthly payment ends up being $1061.08 per month, determine the total amount you paid for

the SUV.

MBF3C WS 8.8 Operating a Vehicle

MBF3C WS 8.9 The Cost of Irresponsible Driving

MBF3C WS 8.10 Unit 8 Review

1. Calculate the interest earned on each of the following investments.

a) $5600 at 4% simple interest for 6 months b) $300 at 7.5% simple interest for 30 weeks

c) What simple interest rate is needed to earn $500 on a $2000 investment for 4 years?

2. Calculate the Future Value for each investment.

a) $3,000 at 6% compounded daily for the month of January.

b) $15,000 at 5.25% compounded quarterly for 3 years.

3. How much interest was earned on the investments from # 2?

a) b)

4. Determine the future value of the $5000 investment at 7.5%/a compounded monthly for 10 years.

5. How much must Greta invest today at 5.4%/a compounded monthly to have $500 000 in 30 years?

6. Jemma wants to invest $10 000 and has 4 possible investments she can choose from. Which of the following

should she choose if she pans to invest for 5 years?

A) 6.4%/a compounded annually B) 6.3%/a compounded monthly

C) 6.2%/a compounded quarterly D) 6.0%/a compounded bi-weekly

SHE SHOULD CHOOSE INVESTMENT________.

7. Who benefits from a credit card with no annual fee but a high interest rate?

8. David’s credit card has a balance of $895. Interest is charged at 19.5% compounded daily and it has a grace

period of 21 days. The minimum payment is the greater of $10 or 3%.

a) If the statement date is June 15th what day should David make a payment to avoid paying interest?

b) What is the minimum payment due on the credit card?

9. Calculate the sales tax on the following vehicle purchases. NOTE: HST = 13%

a) A new SUV selling for $35,795 b) A used Jeep selling for $8,500

10. Patrick leased a car for 4 years. He made a $4500 down payment and paid $459 per month. What was the total

cost of the leasing the car?

11. Calculate the cost to fill a 90L gas tank if the price of gasoline is $1.275/L.

12. How far can a car with a 40L tank travel if its fuel efficiency is 2.5L/100km?

13. Fred purchased a new car for $36,789 and one year later it was valued at $26,856. Calculate the first year

depreciation as a percent of the original selling price.

Unit 8 Worksheet Selected Answers

WS 8.1

2. a) 1.5 b) 4

13 c)

88

365 d) 4 e) 1 f)

1

4 g)

80

73 h) 1 3. $45 4. a) $11.67 b) $411.67 5. $4974.36 6. 33.3%

7. 8.14 years 8. a) $198.80 b) $4698.80 9. a) $48

WS 8.2

2. b) $10, B

WS 8.3

4. 8% 5. Markton 6. $1 288.00 7. $836.54 8. $1 322 873.23

WS 8.4

1. $3 494.62 2. $3 157.64 3. $9 005.01 4. $26 673.51 2. a) $3886.62 b) $3871.23 c) $3857.96 d) $3855.88 e) $3855.34

WS 8.5

2. a) $1843.88, I = $343.88 b) $1975.21, I = $475.21 c) $2115.90, I = $615.90 3. a) $80 b) $188.10 4. a) Increase by $153.05 b) Increase by $155.79 5. a) $2771.54 b) $2717.85 6. a) $18872.00 b) $19386.97 c) $18886.25 7. a) $21589.25 b) $21911.23 c) $22080.40 d) $22196.40

WS 8.6

1. $185.37 2.a) $678.00 b) $20.34 c) (i) June 24 (ii) $19.32 3. $5750 4. Air Miles

WS 8.9 1. $101.70 2. $293.80 3. $203.40 4. 10 5. 1 demerit point

WS 8.7 1. a) $39096.87 b) $14111.44 c) $8863.72 d) $46376.33 2. $47087.35 3. $55931.84 7. A: $25880 B: $26400 8. $5888.00

WS 8.8 1. a) F b) V c) F d) V e) V f) F g) F h) F i) V j) F 2. a) yearly b) yearly 3. a) 434.8 km b) 10.2 L c) $11.52 d) about 160 km

4. minivan by about 25 km 5. a) $2 5025; $19 269.25 b) 40.71% 6. Natalie’s 7. a) $8 040 b) 12% c) 34.9%

WS 8.10 1. a) $112 b) $12.98 c) 6.25% 2. a) $3015.33 b) $17540.73 3. a) $ 15.33 b) $2540.73 4. $6415.13 5. $99 309.60 6. Investment B 8. a) July 6 b) $26.85 9. a) $4653.35 b) $1105.00 10. $28 260 11. $114.75 12. 1600 km 13. 27%