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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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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