If Celia wishes to receive the maximum amount of money at the end of the 15 years which option should she choose? (7) (Total 18 marks) IB Math Studies Financial Mathematics Mark Scheme – –Questions 1. (a) 1.7700 CHF (A2) (C2) (b) Method 1 2% of 1000 CHF = 20 (A1) Amount = 1000 20 (M1) – = 980 CHF (A1) = USD (M1) = 553.67 USD (A1) = 554 USD (to nearest dollar) (A1) (C6) Method 2 1.7700 CHF = 1 USD 1000 CHF = (M1) = 564.97175 (A1) 564.97175 × 0.98 (M1)(A1) = 553.67 (A1) = 554 USD (to the nearest dollar) (ft from answer in (a)) (A1) (C6) [8] 2. (a) = 6000(1.06)10 (M1)(A1) A = 10745 (AUD) (A1) (C3)
If Celia wishes to receive the maximum amount of money at the end of the 15 years which option should she choose? (7) (Total 18 marks) IB Math Studies – Financial Mathematics –Questions Mark Scheme 1. (a) 1.7700 CHF (A2) (C2) (b) Method 1 2% of 1000 CHF = 20 (A1) Amount = 1000 – 20 (M1) = 980 CHF (A1) = USD (M1) = 553.67 USD (A1) = 554 USD (to nearest dollar) (A1) (C6) Method 2 1.7700 CHF = 1 USD 1000 CHF = (M1) = 564.97175 (A1) 564.97175 × 0.98 (M1)(A1) = 553.67 (A1) = 554 USD (to the nearest dollar) (ft from answer in (a)) (A1) (C6) [8] 2. (a) A = 6000(1.06)10 (M1)(A1) = 10745 (AUD) (A1) (C3)