Gr 10 Math Ch 8: Calculations using Simple and Compound Interest
18 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What does the principal amount in a hire purchase agreement represent?

  • The price of the product minus the deposit (correct)
  • The total interest paid over the duration of the loan
  • The total cost of the product including interest
  • The deposit plus any monthly payments

    • How is the interest calculated in a hire purchase agreement?

  • At a compound interest rate on the total amount
  • Based on the total monthly payments made
  • On the entire cash price of the product
  • At a simple interest rate on the remaining loan amount (correct)

    • Which formula is used to calculate future prices under inflation?

  • $A = P + (P imes i)$
  • $A = P(1 + i)^n$ (correct)
  • $A = P(1 + r)^n$
  • $A = P imes (1 + n imes i)$

    • What is the purpose of using the compound interest formula for population growth?

    <p>To account for the non-linear increase in population size</p> Signup and view all the answers

    What is the variable 'n' in the inflation and population growth formulas?

    <p>The number of years for which the calculations are made</p> Signup and view all the answers

    In the context of hire purchase agreements, which aspect does not directly influence the monthly payment amount?

    <p>The customer's total income</p> Signup and view all the answers

    What type of interest is charged in a hire purchase agreement?

    <p>Simple interest</p> Signup and view all the answers

    In the formula for calculating future price due to inflation, what does the variable 'i' represent?

    <p>Inflation rate as a decimal</p> Signup and view all the answers

    Which of the following best describes the principal amount in a hire purchase agreement?

    <p>The cash price minus the deposit made</p> Signup and view all the answers

    What is the primary reason for using the compound interest formula in population growth calculations?

    <p>To reflect the exponential nature of growth</p> Signup and view all the answers

    If the inflation rate is 3% per year, what is the value of 'i' when used in the compound interest formula?

    <p>0.03</p> Signup and view all the answers

    When calculating monthly payments in a hire purchase agreement, which of the following factors is NOT considered?

    <p>Total cash price including taxes</p> Signup and view all the answers

    What financial characteristic is essential to understand when entering into a hire purchase agreement?

    <p>The calculation of interest on the remaining amount</p> Signup and view all the answers

    Which of the following best describes how inflation affects the price of goods and services?

    <p>It raises prices exponentially over time.</p> Signup and view all the answers

    In the context of loan repayment through hire purchase, which factor contributes directly to the monthly payment amount?

    <p>The simple interest rate applied to the remaining amount</p> Signup and view all the answers

    Considering population growth calculations, what does the variable 'A' represent in the compound interest formula?

    <p>Future population anticipated after growth</p> Signup and view all the answers

    What does the variable 'P' signify in the inflation formula?

    <p>Current price before inflation adjustment</p> Signup and view all the answers

    Which of the following statements is true regarding the relationship between interest rates and hire purchase agreements?

    <p>Interest is applied only to the remaining loan amount after deposit.</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser