Deck 21: Interest and Depreciation

Question 1

What is the sum of the first 6 terms of an arithmetic progression when a = 3 and d = 4?

A) 68
B) 73
C) 78
D) 83

Answer 1

78

Question 2

A Kenyan company takes a loan of 100,000 Kenyan Shillings (KES) - what term is used to refer to this amount?

A) Accrued amount
B) Base amount
C) Loan amount
D) Principal amount

Answer 2

Principal amount

Question 3

What is the 5th term of a geometric progression when a = 2 and r = 3?

A) 162
B) 165
C) 168
D) 171

Answer 3

162

Question 4

What is the Annual Percentage Rate (APR) of a loan with Nominal Rate of 8% and a Compounding Period of 3 months (n = 4) (1 decimal place)?

A) 8.2%
B) 8.1%
C) 8.0%
D) 7.9%

Question 5

What is the 7th term of an arithmetic progression when a = 5 and d = 3?

A) 20
B) 23
C) 26
D) 29

Question 6

What is the sum of the first 8 terms of a geometric progression when a = 4 and r = 2?

A) 940
B) 970
C) 1000
D) 1020

Question 7

A law firm in Oman purchases a new car for partners' use. Its original value is 19,000 Omani Rial (OMR) and it will depreciate by 15% per year. How much will it be worth after 3 years (to the nearest OMR)?

A) OMR 11,634
B) OMR 11,646
C) OMR 11,659
D) OMR 11,668

Question 8

A clothing company in Pakistan purchases a new machine worth 1.5 million Pakistani Rupees (PKR). In 5 years it will be worth PKR 300,000. Assuming a straight line depreciation, by how much should its value be depreciated each year?

A) PKR 220,000
B) PKR 240,000
C) PKR 260,000
D) PKR 280,000

Question 9

A transport company in the Philippines borrows 60,000 Philippine Pesos (PHP) at an interest rate of 6% per year. After 3 years, assuming they have paid nothing back, what it the value of Accrued Amount (to the nearest PHP)?

A) PHP 70,569
B) PHP 70,951
C) PHP 71,461
D) PHP 71,989

Question 10

A Turkish company has a computer with a depreciated value (D) of 1,200 Turkish Lira (TRY) after 4 years depreciation at 9%. What was its original book value (B) (to nearest TRY)?

A) TRY 1,700
B) TRY 1,750
C) TRY 1,800
D) TRY 1,850