Financial Math Quiz

Compound interest is calculated on both the principal amount and any accumulated interest from previous periods. This means that the interest earned in each period is added to the principal, and the next period's interest is calculated on the new, larger principal amount. This compounding effect leads to exponential growth over time, making compound interest a powerful tool for long-term investments.

Let the amount invested in scheme A be x, then the amount invested in scheme B would be (13900 - x).

Using the formula for simple interest, we can calculate the interest earned from scheme A as (x * 14% * 2) and the interest earned from scheme B as ((13900 - x) * 11% * 2).

Given that the total interest earned is R3508, we can set up the equation:

(x * 14% * 2) + ((13900 - x) * 11% * 2) = 3508

Simplifying this equation, we find that x = 6400.

Therefore, the amount invested in scheme B is R6400.

At a 4.5% interest rate per annum, the interest earned is calculated as a percentage of the principal amount. To find the time it takes for an amount of Rs. 900 to yield Rs. 81 in interest, we can use the formula: Time = (Interest / (Principal * Rate)). Plugging in the given values, we get Time = (81 / (900 * 0.045)) = 2 years. Therefore, it will take 2 years for an amount of Rs. 900 to yield Rs. 81 as interest at a 4.5% per annum simple interest rate.

Let the amount invested in scheme A be x and the amount invested in scheme B be (13900 - x). The simple interest earned from scheme A in 2 years is (x * 14 * 2) / 100 = 28x/100. The simple interest earned from scheme B in 2 years is ((13900 - x) * 11 * 2) / 100 = (27800 - 22x)/100. Given that the total simple interest earned is 3508, we can set up the equation: 28x/100 + (27800 - 22x)/100 = 3508. Simplifying the equation, we get: 6x/100 = 3508 - 27800/100. Solving for x, we find x = 7200. Therefore, the amount invested in scheme B is 13900 - 7200 = 6700. Hence, the correct answer is R7200.

Arun took a loan of Rs. 1400 with simple interest for as many years as the rate of interest. This means that the rate of interest is equal to the number of years. Arun paid Rs. 686 as interest at the end of the loan period. To find the rate of interest, we can use the formula: Interest = Principal * Rate * Time. Plugging in the values, we have 686 = 1400 * Rate * Rate. Solving for Rate, we get Rate = 7%.

Direct Debit is a payment method that allows companies to take money directly from a person's bank account to pay for goods or services. It is not a deduction from your pay each month, as it is a separate transaction that you authorize. Tax and National Insurance, on the other hand, are deductions that are typically taken from an individual's salary or wages each month.

Sean earns £6.83 per hour and works for 38 hours per week. To calculate his weekly gross pay, we can multiply his hourly rate by the number of hours he works. £6.83 x 38 = £259.34. Therefore, the correct answer is £255.45.

Charlie earns £1,980 per month and pays income tax at a rate of 20%. To calculate how much tax Charlie pays per month, we multiply her monthly income by the tax rate. 20% of £1,980 is £396. Therefore, Charlie pays £396 in tax per month.

If £250 is invested at a simple interest rate of 2% for 2 years, the interest earned would be £5 (250 * 0.02 * 2). Adding this interest to the initial investment, the total amount in the bank would be £255. Therefore, the correct answer is £260.