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QLDMath MethodsQuick questions

Unit 1: Algebra, statistics and functions

Quick questions on Financial applications (QCE Math Methods Unit 1)

6short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is straight-line?
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Constant amount lost each year. Arithmetic sequence.
What is declining-balance?
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Constant percentage lost each year. Geometric sequence.
What is mixing annual and monthly rates?
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If $r$ is annual, $n = 12$, and $t$ is in years. Do not also divide $t$.
What is forgetting to subtract principal for interest?
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Total interest = $A - P$.
What is using simple interest where compound is meant?
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Australian consumer products (savings, loans, credit cards) almost always compound.
What is decimal vs percent?
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$5$% as $0.05$ in formulas. Using $5$ directly gives nonsense.

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