Standard Form Investment Interest
1. Write 9 300 000 in standard form.
Standard form means expressing the number as $a \times 10^n$ where $1 \leq a < 10$ and $n$ is an integer.
$9\,300\,000 = 9.3 \times 10^6$
2. Write 0.0000007 in standard form.
Move the decimal point to the right until you get a number between 1 and 10.
$0.0000007 = 7 \times 10^{-7}$
3. State one low-risk investment type.
Example: Fixed deposit.
4. State one high-risk investment type.
Example: Stocks.
5. Define 'saving'.
Saving is setting aside money for future use, usually in a safe place like a bank.
6. Define 'investment'.
Investment is putting money into assets or projects expecting to earn a return.
7. What does 'return' mean in investment?
Return is the profit or income earned from an investment.
8. Give one example of long-term investment.
Example: Real estate.
9. Give one example of short-term saving.
Example: Savings account.
10. Which has higher risk: fixed deposit or stocks?
Stocks have higher risk.
11. Which has guaranteed return: saving or investment?
Saving usually has guaranteed return.
12. Name one factor that affects investment return.
Example: Market conditions.
13. Find the simple interest: $P=1000$, $r=5\%$, $t=2$ years.
Simple interest formula: $I = P \times \frac{r}{100} \times t$
$I = 1000 \times 0.05 \times 2 = 100$
14. Find the total with simple interest: $P=1200$, $r=4\%$, $t=3$ years.
$I = 1200 \times 0.04 \times 3 = 144$
Total $A = P + I = 1200 + 144 = 1344$
15. Find $I$ when $P=800$, $r=6\%$, $t=1$ year.
$I = 800 \times 0.06 \times 1 = 48$
16. Find $A$ using compound interest: $P=500$, $r=10\%$, $t=2$.
Compound interest formula: $A = P \times (1 + \frac{r}{100})^t$
$A = 500 \times (1 + 0.10)^2 = 500 \times 1.21 = 605$
17. Find $A$: $P=2000$, $r=5\%$, $t=3$ (compound).
$A = 2000 \times (1 + 0.05)^3 = 2000 \times 1.157625 = 2315.25$
18. Find total using simple interest: $P=700$, $r=8\%$, $t=2$.
$I = 700 \times 0.08 \times 2 = 112$
Total $A = 700 + 112 = 812$
19. Find $I$: $P=1500$, $r=7\%$, $t=4$.
$I = 1500 \times 0.07 \times 4 = 420$
20. Find $A$: $P=1000$, $r=3\%$, $t=5$ (compound).
$A = 1000 \times (1 + 0.03)^5 = 1000 \times 1.159274 = 1159.27$
21. Find $I$ if $P=900$, $r=9\%$, $t=1$ year.
$I = 900 \times 0.09 \times 1 = 81$
22. Find $A$: $P=3000$, $r=6\%$, $t=4$ (compound).
$A = 3000 \times (1 + 0.06)^4 = 3000 \times 1.262476 = 3787.43$
23. Calculate total saving after earning 50 interest from 500.
Total $A = 500 + 50 = 550$
24. If $P=700$ and $I=35$, find total.
Total $A = 700 + 35 = 735$
25. If $P=1200$ and $r=4\%$ simple interest for 1 year, find total.
$I = 1200 \times 0.04 \times 1 = 48$
Total $A = 1200 + 48 = 1248$
26. If $P=1500$ grows to $A=1650$, how much interest?
$I = A - P = 1650 - 1500 = 150$
27. If compound interest gives $A=2000$ from $P=1800$, find interest earned.
$I = A - P = 2000 - 1800 = 200$
28. Total after simple interest: $P=640$, $r=5\%$, $t=2$.
$I = 640 \times 0.05 \times 2 = 64$
Total $A = 640 + 64 = 704$