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| Tutorial ID | Title | Tutorial | Video Tutorial | Revision Notes | Revision Questions | |
|---|---|---|---|---|---|---|
| 5.4 | Applications of Percentage in Banking. Simple and Compound Interest |
1. . A customer deposited $2,400 in his savings account and after two years, he withdrew $2,700 from his account leaving it with zero balance. What is the interest this customer earned from the bank?
Correct Answer: B
2. . A customer deposited $6,800 in his savings account (at simple interest rate) and after five years, he withdrew $8,000 from his account leaving it with zero balance. What is the yearly interest rate the bank applied to this customer?
Correct Answer: D
3. . A bank applies annually 3.8% simple interest rates. What is the balance of a customer in this bank after four years if he deposits $5,000 today?
Correct Answer: B
4. . The total interest accumulated in a savings account in five years is $2,000 and the actual balance is $14,620. What is the yearly interest rate if the bank applies simple interest rates to its customers?
Correct Answer: A
5. . The average annual inflation rate (increase in the living cost including prices) in country X during the past five years was 5% per year. How much does an item cost today if five years ago it was worth $50?
Correct Answer: A
6. . The price of a house three years ago was $100,000 and now it is worth $126,000. What was the average inflation rate during this period?
Correct Answer: B
7. . A customer deposits $7,000 in his savings account where the bank applies a 2.4% yearly interest compounded once in a year. What will the balance of this customer be after six years?
Correct Answer: A
8. . A customer's actual balance after four years of depositing funds in a bank is $11,234. Calculate the original amount he deposited if the bank applies 3% interest rates compounded twice a year.
Correct Answer: C
9. . A customer is undecided about the best bank to choose to deposit his savings. There are three banks available in his city: A, B and C. Bank A applies simple interest rates of 2.7% annum; bank B applies 2.5% interest rates compounded once a year, while bank C applies 2.2% interest rates compounded twice a year. Which bank provides a higher earning after three years?
Correct Answer: A
10. . Alice wants to buy a house that costs $150,000 but she has only $130,000 saved so far. She decides to borrow the rest from a bank that applies 2.7% of interest compounded thrice in a year. She agrees to pay off the loan in five years. How much more than the actual price Alice has to pay for her new house?
Correct Answer: C
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