Financial Maths Grade 10 Past Paper Exam Question 1 #Finance

hello great TS and welcome back to another CashNews.co with me Miss marss in today’s CashNews.co we’ll be looking at some Financial Mass exam P paper questions this will be part one I’ll link the paper below if you want to do it with me pause the screen and answer the

questions or mark it as we go along remember to hit the Subscribe button if you’re not an official part of my Miss Martin’s classroom yet let’s jump right into these questions my first question is an exchange rate question you can always expect an exchange rate question in this

question they are giving me the pound to Rand exchange rate that’s the exchange rate as given and they say that Zola traveled to the United Kingdom to watch some WWE racing matches and the total cost needed for the trip was £ 3,569 we need that amount in rant we know that 1 is 1818 Rand that

means that this many pounds to get it to R I’ll need to multiply by 18.18 if you struggle with exchange rates remember you can always do it like this you write the two currencies next to each other underneath that you write the exchange rate as given so one pound to 18.18 Rand then we are

given pounds and we want Rands so under pounds we write 3 5 6 9 we’re looking for this amount over here and as I’ve mentioned before we always divide on this side and then we multiply on the top so if I were to write that in my calculator it would be 35 6 9 divide on the side divided by

1 times on the top Times by 18.18 so essentially we are multiplying that number by that number and the reason I like this is because divide on side they rhyme and then times on top we’ve got some alliteration over there so our answer should be and there’s my answer my next question is a

higher purchase question now remember higher purchase is a short-term Loan and the interest paid on this Loan is simple interest so we need to use our simple interest formula now remember with a higher purchase agreement usually a deposit is paid so usually we have

to work out that deposit first and take it off of the selling price of the car or in this case it’s a car um and it’s the thing that we’re purchasing we have to take the deposit away first so my first question let’s read it it says seore bought a brand new Ford Ranger in

April 2015 on higher purchase at a cost of 3 379,000 R he agreed on paying 15% deposit remember that comes off first and then took out a Loan on the balance so the balance is the left over amount and they give me the interest rate remember simple interest so first question how much

deposit must he pay deposit is a percentage of the total amount so it’s 15% deposit so essentially it is 15% of your total like that and then you can work it out as so that is the amount required for him to pay on the day before he can drive away in his car and the leftover the balance will

be paid over a period of time they say hence calculate the initial value of the Loan remember the Loan again is the leftover amount after you remove the balance so you take the initial price that the car cost minus what we just paid for my deposit and what we get

that is the balance that is the value of the Loan 32215 my next question says calculate the value of the Loan with interest in April 2019 so remember we are purchasing in April 2015 from April 2015 to April 2019 if you count that is 4 years it’s a 4year

period this is when I need to use my simple interest formula now remember p is your starting amount and when we deal with high higher purchase p is always the balance after I get rid of the deposits this is the number one I is the interest rate now remember because it’s an interest rate

it’s a percentage we need to divide it by 100 so it’s your percentage but in this this case it’s 22.5 over here an interest rate we’re going to have to divide it by 100 to get it into its percentage form and N is the time period in years it’s the number of years so in

our question it’s four and if I put it in this formula it gives me a now a remember is the accumulated amount it’s the final amount including your interest after the number of years that you specify in the formula so let’s substitute into my formula there we go and our final

answer is 61285 another way of course that you can do this question is you can use the following formula SI i = p * I * n now remember this formula just gets me the amount of Interest whereas the one on the left hand side gives me a the final amount including interest so it’s basically your

starting amount plus whatever interest was accruit on the amount if you want to use this formula you start with p as normal after you take your deposit off once again Times by your interest rate remember to divide that by 100 times by your number of years and what you get over here is 289 935 but

remember this isn’t your final amount this is just the amount of Interest therefore the value of the Loan withth interest will be what the Loan started out as plus the amount of Interest that again accumulated over time and when we add those together we get

the same final amount that we got over here whichever formula you use it doesn’t matter just write it out properly substitute remember to show all your steps like this my next question wants the monthly installment so how much money I’m going to pay off every month if he paid the

Loan after the 4-year period so to calculate the monthly installments remember you take your a value your final value including interest divided by the number of months so in our case we’ve got our a value our answer from the previous question and it’s 4 years which

equals 48 months remember there’s 12 months in one year so you times it by 12 so it is divided by 48 and therefore our monthly installments 12751 comma 77 my next question says a sum of money was invested 6 years ago so n is six earning interest at a rate of 67% per anom compounded annually

now very important as soon as you see compounded compounded you know you’re not going to use simple interest anymore we’re going to be using our compound interest formula different formula just take note that some textbooks use r instead of I but it is the interest rate and remember

again we’ll need to divide that by 100 because it’s a percentage the investment is currently worth 96714 02 Rand when they say currently worth clearly that’s not the amount that we started with it’s not P it’s a it is after a certain amount of years it’s after 6

years this is the value over here so that is my a value they then say calculate how much was originally invested 6 years ago so what did we start with what was the principal amount what is p so we substitute everything correctly into my formula and remember we are looking for p we are looking to

isolate that variable we’re we’re solving for p now to get P alone p is being multiplied by this entire bracket so to get P alone we need to divide the left hand side by this entire bracket so we’ll type it into our calculator like that and we get a final answer of 65 53 9 comma

47 if we round off to two decimals I hope that this was a helpful past paper question please look at the links in the description box for more and I can’t wait to see you in another CashNews.co very soon bye everyone