SQA Higher Applications of Mathematics Finance overview quiz quiz

$\text{FV} = \text{PV} \times (1 + i)^{n}$

$\text{FV} = \text{PV} \times i \times n$

$\text{FV} = \dfrac{\text{PV}}{(1 + i)^{n}}$

$\text{FV} = \text{PV} + i n$

$\pounds 1050$

$\pounds 1102.50$

$\pounds 1100$

$\pounds 1025$

add $i \times n$

multiply by $(1 + i)^{n}$

divide by $(1 + i)^{n}$

subtract the interest

$6\%$

$1\%$

$72\%$

$0.5\%$

raises the effective annual rate

lowers the effective annual rate

has no effect

removes the interest

subtract the payment, then add interest

add interest to the balance, then subtract the payment

ignore the interest

add the payment to the balance

$\pounds 700$

$\pounds 680$

$\pounds 720$

$\pounds 740$

still charges interest

doubles the debt

cannot be paid off

is effectively interest-free

The true yearly cost of credit including compounding

The monthly minimum payment

The credit limit

The number of repayments

$18\%$

$15\%$

$19.6\%$

$1.5\%$

all of a person's income

the tax-free allowance only

only savings interest

income above the tax-free allowance

$\pounds 1486$

$\pounds 4000$

$\pounds 2514$

$\pounds 12570$

buys more each year

earns interest

buys less each year

stays the same in real terms

$\pounds 208$

$\pounds 204$

$\pounds 240$

$\pounds 196$

the total amount the insurer pays

the yearly premium

the amount you pay yourself on each claim

the profit of the insurer

a higher premium

no cover

no claims allowed

a lower premium