School / IB / MATH AI SL / Financial mathematics Exam-style + marking analysis
Financial mathematics Compound interest, reducing-balance depreciation and loan amortisation.
6 activities ≈ 36 minutes
Mathematics: Applications & Interpretation SL Financial mathematics
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Paper All papers Paper 1 style Paper 2 style General practice (not paper-specific)
Paper labels are an unofficial, independently authored grouping, applied only where a question's own format genuinely matches a real paper convention (such as IB Mathematics AA's non-calculator/calculator split). They do not reproduce any exam board's real paper numbering or mark allocation, and uncertain questions are labelled general practice instead.
1 Layla invests AED 4,000 in an account that pays a nominal annual interest rate of 6%, compounded monthly. Calculate the value of her investment after 3 years, giving your answer to the nearest AED. Paper 1 style Easy 3 marks Calculator + 2 Marking analysis: A learner attempts the following task: “Layla invests AED 4,000 in an account that pays a nominal annual interest rate of 6%, compounded monthly. Calculate the value of her investment after 3 years, giving your answer to the nearest AED.” Their response addresses only this point: “Identifies n = 36 (monthly compounding over 3 years).” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks. Marking analysis Easy 3 marks No calculator + 3 A delivery van bought for AED 90,000 depreciates at 15% per year using the reducing-balance method. Find its value after 4 complete years, and state the first complete year in which its value falls below AED 40,000. Paper 1 style Medium 4 marks Calculator + 4 Marking analysis: A learner attempts the following task: “A delivery van bought for AED 90,000 depreciates at 15% per year using the reducing-balance method. Find its value after 4 complete years, and state the first complete year in which its value falls below AED 40,000.” Their response addresses only this point: “Uses the reducing-balance model V = 90000(0.85)^n.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks. Marking analysis Medium 4 marks No calculator + 5 A student borrows AED 12,000, to be repaid by equal monthly instalments over 2 years at a nominal annual interest rate of 9%, compounded monthly. (a) Calculate the monthly instalment. (b) Calculate the total amount repaid over the loan. (c) Calculate the total interest paid. (d) State how the total interest would change, without further calculation, if the loan term were extended to 3 years at the same rate. Paper 2 style Hard 6 marks Calculator + 6 Marking analysis: A learner attempts the following task: “A student borrows AED 12,000, to be repaid by equal monthly instalments over 2 years at a nominal annual interest rate of 9%, compounded monthly. (a) Calculate the monthly instalment. (b) Calculate the total amount repaid over the loan. (c) Calculate the total interest paid. (d) State how the total interest would change, without further calculation, if the loan term were extended to 3 years at the same rate.” Their response addresses only this point: “Sets up the loan with PV = 12000, n = 24 monthly payments, and a monthly rate of 9%/12 = 0.75%.” Evaluate the response against the complete 6-mark task. Identify what earns credit and state every additional requirement needed for full marks. Marking analysis Hard 6 marks No calculator + Self-assessed 0 / 0
Set total 26
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