Financial applications of sequences practice questions — IB Maths AA

A deposit of $\mathrm{\$}\mathrm{2,000}$ earns annual compound interest at $5\mathrm{\%}$. The balance after $2$ years is:

A worker invests $\mathrm{\$}\mathrm{1,000}$ at the end of each year into an account paying $5\mathrm{\%}$ annual compound interest. The account balance at the end of year $3$ (just after the third deposit) is:

An item priced at $\mathrm{\$}80$ is on sale at a $25\mathrm{\%}$ discount. The sale price is:

At $7\mathrm{\%}$ annual compound interest, the rule of $72$ estimates that money doubles in approximately:

The price of a product before VAT is $\mathrm{\$}200$. After applying $19\mathrm{\%}$ VAT, the final price is:

A car insurance policy pays a claim depending on the event that occurs during a year:

- no claim: probability $0.85$, payout $0$ lei; - minor damage: probability $0.12$, payout $1000$ lei; - total loss: probability $0.03$, payout $20000$ lei.

What is the expected value of the payout made by the insurer for this policy?

A deposit of $\mathrm{\$}\mathrm{1,000}$ earns simple interest at $4\mathrm{\%}$ per year. After $5$ years, the total interest earned is:

$15\mathrm{\%}$ of $200$ is:

A price goes from $\mathrm{\$}80$ to $\mathrm{\$}100$. The percentage increase is:

A bank deposit of $3000$ lei is placed for one year at a simple annual interest rate of $5\mathrm{\%}$. What amount does the interest earned at the end of the year represent?