Subjects finance, algebra

Standard Form Investment Interest

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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 $A = 640 + 64 = 704$