Name…………………………………………………………………….

Year 11 General Mathematics 2013

Assessment Task 2.3 – Multiple Choice Analysis Task

Total Marks 30marks

Time Allowed80 minutes

Questions 1, 2 and 3 relate to the following information.

Andrew’s Amazing Furniture is having a sale.

He sells a $2000 lounge suite to Rocco under a finance agreement.

Rocco pays a deposit of $200.

The finance agreement then sees him pay the balance plus interest in 36 equal monthly instalments of $68.

Question 1

The total amount that Rocco paid for the lounge suite was

A $2000

B$2448

C$2648

D$2248

E$1800

Question 1a

Show the working that was involved in getting the correct answer

2 marks

Question 1b

Explain what error a student has made if they selected “B”

1 mark

Question 2

What was the dollar value of the amount financed for the purchase of the lounge suite?

A$2000

B$2448

C$2648

D$2248

E$1800

Question 2a

Why is the amount financed different to the purchase price?

1 mark

Question 3

The annual flat rate of interest applied to this agreement is

A 7.5%

B10.8%

C12.0%

D22.4%

E36.0%

Question 3a

In calculating the answer to this question a student used the formula

I = PRT

100

The unknown was R

What values for I, P and T have been used?

I / P / T

3 marks

Question 3b

What would a student enter into their CAS calculator (using the solve function) in order to obtain the correct answer?

1 mark

Question 3c

A student tried this question several times using their CAS calculator and kept getting an answer of 15.7%. What error may have been made?

1 marks

Questions 4,5 &6 relate to the following information.

A bank statement for the month of October is shown below

Date / Description of transaction / Debit / Credit / Balance
01 Oct / Opening balance
04 Oct / Withdrawal – ATM / 380.00 / 473.92
16 Oct / Deposit – McDonalds Wages / 518.15
18 Oct / Optus Mobile Phone Bill – payment / 125.56 / 866.51
23 Oct / Withdrawal – Internet banking / 250.00 / 616.51
31 Oct / Closing balance / 616.51

Question 4

What would the opening balance be?

A$473.92

B$616.51

C$853.92

D$93.92

E$992.07

Question 4a

How was this calculated?

1 mark

Question 5

What would the balance be on 16 October?

A$473.92

B$616.51

C$853.92

D$93.92

E$992.07

Question 5a

Describe two methods of getting the correct answer

2 marks

Question 6

Interest on this account is calculated at a rate of 1.8% per annum on the minimum monthly balance. The interest for the month of October would be nearest to

A$0.19

B$0.57

C$0.71

D$1.28

E$8.53

Question 6a

What was the minimum monthly balance which would be used to claculate the interest payable?

1 mark

Question 6b

What is the interest rate payable per month on the account?

1 mark

Question 6c

A student consistently gets an answer of $8.53, what error has been made?

1 mark

Question 7

Vince bought a new lawn mower at a sale

First there was a 20% discount from the original price.

Then, an $80 trade in for his old mower was subtracted from this reduced price.

This left Vince with $368 to pay for the new lawn mower.

The original price of the new lawn mower was

A$468.00

B$537.50

C$540.00

D$560.00

E$580.00

Question 7a

If Vince did not have a trade in, what price would he have paid for the lawn mower?

1 mark

Question 7b

Why is it important to have this value prior to proceeding to Question 7c?

1 mark

Question 7c

Clearly show the working which could be used to obtain the correct answer

3 marks

Question 8

In October 2012, James and Madison bought a house for $1 425 000 in an area where house prices rise on average 6% per year. They decided to hold on to their house until its value is $1 950 000. In which year should James and Madison sell their current home?

A2015

B2016

C2017

D2018

E2019

Question 8a

In order to solve this question, what formula would be used?

1 mark

Question 8b

In solving the equation above, a student got an answer of 5.38years. Covert this into years and months (rounded to the nearest month). Show correct working.

2 marks

Question 8c

Which incorrect answer do you think is the most likely one given and why?

2 marks

Question 9

Mike borrowed $18000. He will fully repay the loan in five years with equal monthly payments of $375.40. Interest is charged at the rate of 9.2% per annum, calculated monthly, on the reducing balance.

The amount Mike has paid off the principal immediately following the tenth payment is

A$1338.90

B$2457.60

C$3276.00

D$3600.44

E$16661.10

Question 9a

What is the monthly rate of interest (round to two decimal places)?

1 mark

Question 9b

How many terms (time periods) apply to this loan?

1 mark

Question 9c

Show full working for obtaining the correct solution

3 marks

End of Questions