MOCK PAPER 1 CM1 MM:100 TIME: 3h 15 min
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(vi) Total Number of questions are 12
𝑸𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝟏: (𝑖) 𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑝𝑟𝑒𝑠𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 £100 𝑜𝑣𝑒𝑟 𝑡𝑒𝑛 𝑦𝑒𝑎𝑟𝑠 𝑎𝑡 𝑡ℎ𝑒 𝑓𝑜𝑙𝑙𝑜𝑤𝑖𝑛𝑔 𝑟𝑎𝑡𝑒𝑠 𝑜𝑓
𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡/𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡:
(𝑎) 𝑎 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑜𝑓 5% 𝑝𝑒𝑟 𝑎𝑛𝑛𝑢𝑚 𝑐𝑜𝑛𝑣𝑒𝑟𝑡𝑖𝑏𝑙𝑒 𝑚𝑜𝑛𝑡ℎ𝑙𝑦
(𝑏) 𝑎 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝑜𝑓 5% 𝑝𝑒𝑟 𝑎𝑛𝑛𝑢𝑚 𝑐𝑜𝑛𝑣𝑒𝑟𝑡𝑖𝑏𝑙𝑒 𝑚𝑜𝑛𝑡ℎ𝑙𝑦
(𝑐)𝑎 𝑓𝑜𝑟𝑐𝑒 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑜𝑓 5% 𝑝𝑒𝑟 𝑎𝑛𝑛𝑢𝑚 [3]
(𝑖𝑖)𝐴 91 𝑑𝑎𝑦 𝑡𝑟𝑒𝑎𝑠𝑢𝑟𝑦 𝑏𝑖𝑙𝑙 𝑖𝑠 𝑏𝑜𝑢𝑔ℎ𝑡 𝑓𝑜𝑟 $98.91 𝑎𝑛𝑑 𝑖𝑠 𝑟𝑒𝑑𝑒𝑒𝑚𝑒𝑑 𝑎𝑡 $100. 𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑎𝑛𝑛𝑢𝑎𝑙 𝑒𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑟𝑎𝑡𝑒 𝑜𝑓
𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑜𝑏𝑡𝑎𝑖𝑛𝑒𝑑 𝑓𝑟𝑜𝑚 𝑡ℎ𝑒 𝑏𝑖𝑙𝑙 . [2]
(𝑖𝑖𝑖) 𝐴 10 𝑦𝑒𝑎𝑟 𝑎𝑛𝑛𝑢𝑖𝑡𝑦 𝑖𝑚𝑚𝑒𝑑𝑖𝑎𝑡𝑒 𝑝𝑎𝑦𝑠 100 𝑞𝑢𝑎𝑟𝑡𝑒𝑟𝑙𝑦 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑓𝑖𝑟𝑠𝑡 𝑦𝑒𝑎𝑟. 𝐼𝑛 𝑒𝑎𝑐ℎ 𝑠𝑢𝑏𝑠𝑒𝑞𝑢𝑒𝑛𝑡 𝑦𝑒𝑎𝑟,
𝑒𝑎𝑐ℎ 𝑝𝑎𝑦𝑚𝑒𝑛𝑡 𝑖𝑠 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒𝑑 𝑏𝑦 5% 𝑜𝑣𝑒𝑟 𝑡ℎ𝑒 𝑝𝑎𝑦𝑚𝑒𝑛𝑡 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟. 𝑇ℎ𝑒𝑟𝑒 𝑖𝑠 𝑎 𝑛𝑜𝑚𝑖𝑛𝑎𝑙 𝑎𝑛𝑛𝑢𝑎𝑙
𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑜𝑓 8% 𝑐𝑜𝑛𝑣𝑒𝑟𝑡𝑖𝑏𝑙𝑒 𝑞𝑢𝑎𝑟𝑡𝑒𝑟𝑙𝑦. 𝐹𝑖𝑛𝑑 𝑡ℎ𝑒 𝑝𝑟𝑒𝑠𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑖𝑠 𝑎𝑛𝑛𝑢𝑖𝑡𝑦. [5]
𝑸𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝟐: 𝐸𝑥𝑝𝑙𝑎𝑖𝑛 𝑤ℎ𝑎𝑡 𝑖𝑠 𝑚𝑒𝑎𝑛𝑡 𝑏𝑦
(ii) 𝐸𝑣𝑎𝑙𝑢𝑎𝑡𝑒 𝑎𝑠𝑠𝑢𝑚𝑖𝑛𝑔 𝑏𝑜𝑡ℎ 𝑙𝑖𝑣𝑒𝑠 𝑎𝑟𝑒 𝑠𝑢𝑏𝑗𝑒𝑐𝑡 𝑡𝑜 𝐴𝑀92 [5]
𝑸𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝟑: 𝑀𝑟. 𝑋 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠 𝑎 20 𝑦𝑒𝑎𝑟 𝑏𝑜𝑛𝑑 𝑡ℎ𝑎𝑡 ℎ𝑎𝑠 𝑎 𝑅𝑠 100 𝑛𝑜𝑚𝑖𝑛𝑎𝑙 𝑣𝑎𝑙𝑢𝑒 𝑎𝑛𝑑 𝑝𝑎𝑦𝑠 𝑥% 𝑎𝑛𝑛𝑢𝑎𝑙 𝑐𝑜𝑢𝑝𝑜𝑛𝑠.
𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑝𝑟𝑖𝑐𝑒, 𝑡ℎ𝑒 𝑏𝑜𝑛𝑑 ℎ𝑎𝑠 𝑎𝑛 𝑎𝑛𝑛𝑢𝑎𝑙 𝑒𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑦𝑖𝑒𝑙𝑑 𝑡𝑜 𝑚𝑎𝑡𝑢𝑟𝑖𝑡𝑦 𝑜𝑓 6%. 𝐴𝑓𝑡𝑒𝑟 5 𝑦𝑒𝑎𝑟𝑠, 𝑀𝑟 𝑋 𝑠𝑒𝑙𝑙𝑠
𝑡ℎ𝑒 𝑏𝑜𝑛𝑑 𝑡𝑜 𝑀𝑟 𝑌 𝑎𝑡 𝑎 𝑝𝑟𝑖𝑐𝑒 𝑠𝑢𝑐ℎ 𝑡ℎ𝑎𝑡 𝑡ℎ𝑒 𝑏𝑜𝑛𝑑’𝑠 𝑎𝑛𝑛𝑢𝑎𝑙 𝑒𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑦𝑖𝑒𝑙𝑑 𝑡𝑜 𝑚𝑎𝑡𝑢𝑟𝑖𝑡𝑦 𝑓𝑜𝑟 𝑀𝑟 𝑌 𝑖𝑠 5%. 𝑀𝑟 𝑋
𝑒𝑎𝑟𝑛𝑒𝑑 𝑎𝑛 𝑎𝑛𝑛𝑢𝑎𝑙 𝑒𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑦𝑖𝑒𝑙𝑑 𝑜𝑓 7.8% 𝑜𝑣𝑒𝑟 𝑡ℎ𝑒 5 𝑦𝑒𝑎𝑟𝑠 𝑡ℎ𝑎𝑡 ℎ𝑒 𝑜𝑤𝑛𝑒𝑑 𝑡ℎ𝑒 𝑏𝑜𝑛𝑑. 𝐹𝑖𝑛𝑑 𝑥. [6]
𝑸𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝟒: 𝐴 𝑠𝑚𝑎𝑙𝑙 𝑡𝑒𝑐ℎ𝑛𝑜𝑙𝑜𝑔𝑦 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 𝑠𝑒𝑡 𝑢𝑝 𝑎 𝑛𝑒𝑤 𝑣𝑒𝑛𝑡𝑢𝑟𝑒 𝑜𝑛 1𝑠𝑡 𝐽𝑎𝑛𝑢𝑎𝑟𝑦 2001. 𝑇ℎ𝑒 𝑖𝑛𝑖𝑡𝑖𝑎𝑙 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
𝑜𝑛 𝑡ℎ𝑎𝑡 𝑑𝑎𝑡𝑒 𝑤𝑎𝑠 $2 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑤𝑖𝑡ℎ 𝑎 𝑓𝑢𝑟𝑡ℎ𝑒𝑟 $1.5 𝑚𝑖𝑙𝑙𝑖𝑜𝑚 𝑟𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑜𝑛 1 𝐴𝑢𝑔𝑢𝑠𝑡 2001. 𝐼𝑡 𝑖𝑠 𝑒𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑡ℎ𝑎𝑡 𝑜𝑛
1 𝐽𝑎𝑛𝑢𝑎𝑟𝑦 2002, 𝑛𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 (𝑖. 𝑒 𝑖𝑛𝑐𝑜𝑚𝑒 𝑙𝑒𝑠𝑠 𝑟𝑢𝑛𝑛𝑖𝑛𝑔 𝑐𝑜𝑠𝑡𝑠) 𝑤𝑖𝑙𝑙 𝑏𝑒𝑔𝑖𝑛 𝑎𝑡 𝑡ℎ𝑒 𝑟𝑎𝑡𝑒 𝑜𝑓 0.3 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑝𝑒𝑟 𝑎𝑛𝑛𝑢𝑚
𝑎𝑛𝑑 𝑡ℎ𝑎𝑡 𝑡ℎ𝑒 𝑟𝑎𝑡𝑒 𝑤𝑖𝑙𝑙 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑏𝑦 0.1 𝑚 𝑝𝑒𝑟 𝑎𝑛𝑛𝑢𝑚 𝑜𝑛 1𝑠𝑡 𝐽𝑎𝑛𝑢𝑎𝑟𝑦 𝑜𝑓 𝑒𝑎𝑐ℎ 𝑠𝑢𝑏𝑠𝑒𝑞𝑢𝑒𝑛𝑡 𝑦𝑒𝑎𝑟. 𝐼𝑡 𝑖𝑠 𝑎𝑠𝑠𝑢𝑚𝑒𝑑
𝑡ℎ𝑎𝑡 𝑡ℎ𝑒 𝑛𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 𝑤𝑖𝑙𝑙 𝑏𝑒 𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑 𝑐𝑜𝑛𝑡𝑖𝑛𝑢𝑜𝑠𝑙𝑦 𝑡ℎ𝑟𝑜𝑢𝑔ℎ𝑜𝑢𝑡 𝑡ℎ𝑒 𝑝𝑟𝑜𝑗𝑒𝑐𝑡.
𝑇ℎ𝑒 𝐶𝑜𝑚𝑝𝑎𝑛𝑦 𝑒𝑥𝑝𝑒𝑐𝑡𝑠 𝑡𝑜 𝑠𝑒𝑙𝑙 𝑡ℎ𝑒 𝑏𝑢𝑠𝑖𝑛𝑒𝑠𝑠 𝑜𝑛 31 𝐷𝑒𝑐𝑒𝑚𝑏𝑒𝑟 2011 𝑓𝑜𝑟 3 𝑚𝑖𝑙𝑙𝑖𝑜𝑛.
𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑛𝑒𝑡 𝑝𝑟𝑒𝑠𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑣𝑒𝑛𝑡𝑢𝑟𝑒 𝑜𝑛 1 𝐽𝑎𝑛 2001 𝑎𝑡 𝑎 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑜𝑓 6% 𝑝𝑎, 𝑐𝑜𝑛𝑣𝑒𝑟𝑡𝑖𝑏𝑙𝑒
ℎ𝑎𝑙𝑓 − 𝑦𝑒𝑎𝑟𝑙𝑦. [6]
MOCK PAPER 1 CM1 MM:100 TIME: 3h 15 min
𝑸𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝟓 ∶ 𝑌𝑜𝑢 𝑎𝑟𝑒 𝑔𝑖𝑣𝑒𝑛
𝐴(35:1̅| = 0.9435
𝐴35 = 0.13
𝑝35 = 0.9964 𝑎𝑛𝑑 (𝐼𝐴)35 = 3.71
𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 (𝐼𝐴)36 [6]
𝑸𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝟔: 𝐴 𝑙𝑖𝑓𝑒 𝑖𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 𝑠𝑒𝑙𝑙𝑠 𝑎𝑛 𝑖𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒 𝑝𝑟𝑜𝑑𝑢𝑐𝑡 𝑤𝑖𝑡ℎ 𝑎 𝑝𝑜𝑙𝑖𝑐𝑦 𝑡𝑒𝑟𝑚 𝑜𝑓 2 𝑦𝑒𝑎𝑟𝑠 𝑡ℎ𝑎𝑡
𝑝𝑎𝑦𝑠 𝑏𝑒𝑛𝑒𝑓𝑖𝑡𝑠 𝑡𝑜 𝑡ℎ𝑒 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝑎𝑠 𝑑𝑒𝑠𝑐𝑟𝑖𝑏𝑒𝑑 𝑏𝑒𝑙𝑜𝑤:
• $ 8000 𝑎𝑡 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑦𝑒𝑎𝑟 𝑜𝑓 𝑑𝑒𝑎𝑡ℎ 𝑑𝑢𝑟𝑖𝑛𝑔 𝑝𝑜𝑙𝑖𝑐𝑦 𝑡𝑒𝑟𝑚
• $ 5000 𝑎𝑡 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑦𝑒𝑎𝑟 𝑜𝑓 𝑤𝑖𝑡ℎ𝑑𝑟𝑎𝑤𝑎𝑙 𝑑𝑢𝑒 𝑡𝑜 𝑝𝑒𝑟𝑚𝑎𝑛𝑒𝑛𝑡 𝑠𝑖𝑐𝑘𝑛𝑒𝑠𝑠 𝑑𝑢𝑟𝑖𝑛𝑔 𝑝𝑜𝑙𝑖𝑐𝑦 𝑡𝑒𝑟𝑚
• $3000 𝑢𝑝𝑜𝑛 𝑠𝑢𝑟𝑣𝑖𝑣𝑎𝑙 𝑡𝑜 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑜𝑙𝑖𝑐𝑦 𝑡𝑒𝑟𝑚
• 60% 𝑜𝑓 𝑡ℎ𝑒 𝑡𝑜𝑡𝑎𝑙 𝑝𝑟𝑒𝑚𝑖𝑢𝑚𝑠 𝑝𝑎𝑖𝑑 𝑡𝑖𝑙𝑙 𝑑𝑎𝑡𝑒 𝑎𝑡 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑦𝑒𝑎𝑟 𝑢𝑝𝑜𝑛 𝑙𝑎𝑝𝑠𝑎𝑡𝑖𝑜𝑛
𝐵𝑒𝑙𝑜𝑤 𝑎𝑠𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛𝑠 𝑎𝑝𝑝𝑙𝑦:
• 𝐹𝑜𝑟𝑐𝑒 𝑜𝑓 𝑚𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦 = 0.01
• 𝐹𝑜𝑟𝑐𝑒 𝑜𝑓 𝑠𝑖𝑐𝑘𝑛𝑒𝑠𝑠 = 0.04
• 𝐹𝑜𝑟𝑐𝑒 𝑜𝑓 𝑙𝑎𝑝𝑠𝑎𝑡𝑖𝑜𝑛 = 0.05
• 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒 𝑜𝑓 5% 𝑝. 𝑎.
• 𝐴𝑛𝑛𝑢𝑎𝑙 𝑝𝑟𝑒𝑚𝑖𝑢𝑚 𝑜𝑓 𝐼𝑁𝑅 1000 𝑝𝑎𝑖𝑑 𝑖𝑛 𝑎𝑑𝑣𝑎𝑛𝑐𝑒
𝑖) 𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝑜𝑓 𝑑𝑒𝑎𝑡ℎ, 𝑠𝑖𝑐𝑘𝑛𝑒𝑠𝑠, 𝑙𝑎𝑝𝑠𝑒 𝑎𝑛𝑑 𝑠𝑢𝑟𝑣𝑖𝑣𝑎𝑙. (3)
𝑖𝑖) 𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑝𝑟𝑒𝑠𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑏𝑒𝑛𝑒𝑓𝑖𝑡 𝑜𝑓 𝑑𝑒𝑎𝑡ℎ, 𝑠𝑖𝑐𝑘𝑛𝑒𝑠𝑠, 𝑙𝑎𝑝𝑠𝑒 𝑎𝑛𝑑 𝑠𝑢𝑟𝑣𝑖𝑣𝑎𝑙 (6)
𝑸𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝟕: 𝐴 𝑚𝑎𝑛 𝑎𝑔𝑒𝑑 𝑒𝑥𝑎𝑐𝑡𝑙𝑦 55 𝑎𝑛𝑑 𝑎 𝑤𝑜𝑚𝑎𝑛 𝑎𝑔𝑒𝑑 𝑒𝑥𝑎𝑐𝑡𝑙𝑦 50 𝑏𝑢𝑦 𝑎 15 𝑦𝑒𝑎𝑟 𝑒𝑛𝑑𝑜𝑤𝑚𝑒𝑛𝑡 𝑎𝑠𝑠𝑢𝑟𝑎𝑛𝑐𝑒
𝑡ℎ𝑎𝑡 𝑝𝑟𝑜𝑣𝑖𝑑𝑒𝑠 𝑎 𝑏𝑒𝑛𝑒𝑓𝑖𝑡 𝑜𝑓 𝑅𝑠 50,000 𝑜𝑛 𝑚𝑎𝑡𝑢𝑟𝑖𝑡𝑦 𝑜𝑟 𝑎𝑡 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑦𝑒𝑎𝑟 𝑜𝑓 𝑑𝑒𝑎𝑡ℎ, 𝑖𝑓 𝑒𝑎𝑟𝑙𝑖𝑒𝑟. 𝑃𝑟𝑒𝑚𝑖𝑢𝑚
𝑎𝑟𝑒 𝑝𝑎𝑦𝑎𝑏𝑙𝑒 𝑎𝑛𝑛𝑢𝑎𝑙𝑙𝑦 𝑖𝑛 𝑎𝑑𝑣𝑎𝑛𝑐𝑒. 𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒
(A) 𝐴𝑛𝑛𝑢𝑎𝑙 𝑝𝑟𝑒𝑚𝑖𝑢𝑚
(B) 𝑇ℎ𝑒 𝑛𝑒𝑡 𝑝𝑟𝑒𝑚𝑖𝑢𝑚 𝑟𝑒𝑠𝑒𝑟𝑣𝑒 𝑎𝑡 𝑡𝑖𝑚𝑒 5
𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝑓𝑜𝑙𝑙𝑜𝑤𝑖𝑛𝑔 𝑏𝑎𝑠𝑖𝑠
𝑀𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦 𝑃𝐴92𝐶20
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 4% 𝑝𝑎
𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠 𝑅𝑠 500 𝑎𝑡 𝑡ℎ𝑒 𝑜𝑢𝑡𝑠𝑒𝑡 𝑝𝑙𝑢𝑠 5% 𝑜𝑓 𝑒𝑎𝑐ℎ 𝑝𝑟𝑒𝑚𝑖𝑢𝑚, 𝑒𝑥𝑐𝑙𝑢𝑑𝑖𝑛𝑔 𝑡ℎ𝑒 𝑓𝑖𝑟𝑠𝑡 [11]
𝑸𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝟖 ∶ 𝑇𝑒𝑛 𝑦𝑒𝑎𝑟 𝑎𝑔𝑜 𝑎 𝑙𝑖𝑓𝑒 𝑖𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 𝑖𝑠𝑠𝑢𝑒𝑑 𝑎 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑖𝑑𝑒𝑛𝑡𝑖𝑐𝑎𝑙 15 𝑦𝑒𝑎𝑟 𝑒𝑛𝑑𝑜𝑤𝑚𝑒𝑛𝑡
𝑎𝑠𝑠𝑢𝑟𝑎𝑛𝑐𝑒 𝑝𝑜𝑙𝑖𝑐𝑖𝑒𝑠 𝑡𝑜 𝑙𝑖𝑣𝑒𝑠 𝑡ℎ𝑒𝑛 𝑎𝑔𝑒𝑑 𝑒𝑥𝑎𝑐𝑡𝑙𝑦𝑦 35. 𝐸𝑎𝑐ℎ 𝑝𝑜𝑙𝑖𝑐𝑦 ℎ𝑎𝑑 𝑎 𝑠𝑢𝑚 𝑎𝑠𝑠𝑢𝑟𝑒𝑑 𝑜𝑓 𝑅𝑠50,000, 𝑝𝑎𝑦𝑎𝑏𝑙𝑒 𝑜𝑛
𝑚𝑎𝑡𝑢𝑟𝑖𝑡𝑦 𝑜𝑟 𝑎𝑡 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑦𝑒𝑎𝑟 𝑜𝑓 𝑒𝑎𝑙𝑖𝑒𝑟 𝑑𝑒𝑎𝑡ℎ.
(𝑖)𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑎𝑛𝑛𝑢𝑎𝑙 𝑝𝑟𝑒𝑚𝑖𝑢𝑚 𝑎𝑠𝑠𝑢𝑚𝑖𝑛𝑔 𝐴𝑀92 𝑢𝑙𝑡𝑖𝑚𝑎𝑡𝑒 𝑚𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦 𝑎𝑛𝑑 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑜𝑓 4% 𝑝𝑎. 𝐼𝑔𝑛𝑜𝑟𝑒 𝑒𝑥𝑝𝑒𝑛𝑠𝑒. [3]
(𝑖𝑖)𝑇ℎ𝑒 𝐶𝑜𝑚𝑝𝑎𝑛𝑦 ℎ𝑜𝑙𝑑𝑠 𝑟𝑒𝑠𝑒𝑟𝑣𝑒𝑠 𝑓𝑜𝑟 𝑡ℎ𝑒𝑠𝑒 𝑝𝑜𝑙𝑖𝑐𝑖𝑒𝑠, 𝑤ℎ𝑖𝑐ℎ 𝑎𝑟𝑒 𝑐𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒𝑑 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝑝𝑟𝑒𝑚𝑖𝑢𝑚 𝑏𝑎𝑠𝑖𝑠. 𝑇ℎ𝑒𝑟𝑒 𝑎𝑟𝑒
𝑐𝑢𝑟𝑟𝑒𝑛𝑡𝑙𝑦 1000 𝑝𝑜𝑙𝑖𝑐𝑖𝑒𝑠 𝑠𝑡𝑖𝑙𝑙 𝑖𝑛 𝑓𝑜𝑟𝑐𝑒.
(𝑎)𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑚𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦 𝑙𝑜𝑠𝑠 𝑖𝑛𝑐𝑢𝑟𝑟𝑒𝑑 𝑏𝑦 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 𝑖𝑓 𝑡𝑤𝑜 𝑝𝑜𝑙𝑖𝑐𝑦ℎ𝑜𝑙𝑑𝑒𝑟𝑠 𝑑𝑖𝑒 𝑑𝑢𝑟𝑖𝑛𝑔 𝑡ℎ𝑒 𝑐𝑜𝑚𝑖𝑛𝑔 𝑦𝑒𝑎𝑟. [5]
(𝑏)𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑡ℎ𝑎𝑡 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 𝑤𝑖𝑙𝑙 𝑚𝑎𝑘𝑒 𝑎 𝑝𝑟𝑜𝑓𝑖𝑡 𝑓𝑟𝑜𝑚 𝑚𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦 𝑜𝑣𝑒𝑟 𝑡ℎ𝑒 𝑐𝑜𝑚𝑖𝑛𝑔 𝑦𝑒𝑎𝑟. [2]
MOCK PAPER 1 CM1 MM:100 TIME: 3h 15 min
𝑸𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝟗: 𝐴 𝑙𝑖𝑓𝑒 𝑖𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 𝑖𝑠𝑠𝑢𝑒𝑑 𝑎 𝑤𝑖𝑡ℎ 𝑝𝑟𝑜𝑓𝑖𝑡𝑠 𝑤ℎ𝑜𝑙𝑒 𝑙𝑖𝑓𝑒 𝑝𝑜𝑙𝑖𝑐𝑦 𝑡𝑜 𝑎 𝑙𝑖𝑓𝑒 𝑎𝑔𝑒𝑑 20
𝑒𝑥𝑎𝑐𝑡, 𝑜𝑛 1 𝐽𝑢𝑙𝑦 2002. 𝑈𝑛𝑑𝑒𝑟 𝑡ℎ𝑒 𝑝𝑜𝑙𝑖𝑐𝑦, 𝑡ℎ𝑒 𝑏𝑎𝑠𝑖𝑐 𝑠𝑢𝑚 𝑎𝑠𝑠𝑢𝑟𝑒𝑑 𝑜𝑓 £100,000 𝑎𝑛𝑑 𝑎𝑡𝑡𝑎𝑐ℎ𝑖𝑛𝑔 𝑏𝑜𝑛𝑢𝑠𝑒𝑠
𝑎𝑟𝑒 𝑝𝑎𝑦𝑎𝑏𝑙𝑒 𝑖𝑚𝑚𝑒𝑑𝑖𝑎𝑡𝑒𝑙𝑦 𝑜𝑛 𝑑𝑒𝑎𝑡ℎ. 𝑇ℎ𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 𝑑𝑒𝑐𝑙𝑎𝑟𝑒𝑠 𝑠𝑖𝑚𝑝𝑙𝑒 𝑟𝑒𝑣𝑒𝑟𝑠𝑖𝑜𝑛𝑎𝑟𝑦 𝑏𝑜𝑛𝑢𝑠𝑒𝑠 𝑎𝑡 𝑡ℎ𝑒 𝑠𝑡𝑎𝑟𝑡
𝑜𝑓 𝑒𝑎𝑐ℎ 𝑦𝑒𝑎𝑟. 𝐿𝑒𝑣𝑒𝑙 𝑝𝑟𝑒𝑚𝑖𝑢𝑚𝑠 𝑎𝑟𝑒 𝑝𝑎𝑦𝑎𝑏𝑙𝑒 𝑎𝑛𝑛𝑢𝑎𝑙𝑙𝑦 𝑖𝑛 𝑎𝑑𝑣𝑎𝑛𝑐𝑒 𝑢𝑛𝑑𝑒𝑟 𝑡ℎ𝑒 𝑝𝑜𝑙𝑖𝑐𝑦.
(𝑖)𝐺𝑖𝑣𝑒 𝑎𝑛 𝑒𝑥𝑝𝑟𝑒𝑠𝑠𝑖𝑜𝑛 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑔𝑟𝑜𝑠𝑠 𝑓𝑢𝑡𝑢𝑟𝑒 𝑙𝑜𝑠𝑠 𝑟𝑎𝑛𝑑𝑜𝑚 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑢𝑛𝑑𝑒𝑟 𝑡ℎ𝑒 𝑝𝑜𝑙𝑖𝑐𝑦 𝑎𝑡 𝑡ℎ𝑒 𝑜𝑢𝑡𝑠𝑒𝑡.
𝐷𝑒𝑓𝑖𝑛𝑒 𝑠𝑦𝑚𝑏𝑜𝑙𝑠 𝑤ℎ𝑒𝑟𝑒 𝑛𝑒𝑐𝑒𝑠𝑠𝑎𝑟𝑦. [3]
(𝑖𝑖) 𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑎𝑛𝑛𝑢𝑎𝑙 𝑝𝑟𝑒𝑚𝑖𝑢𝑚, 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝑒𝑞𝑢𝑖𝑣𝑎𝑙𝑒𝑛𝑐𝑒 𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑙𝑒.
𝐵𝑎𝑠𝑖𝑠:
𝑀𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦 𝐴𝑀92 𝑆𝑒𝑙𝑒𝑐𝑡
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 6% 𝑝𝑒𝑟 𝑎𝑛𝑛𝑢𝑚
𝐵𝑜𝑛𝑢𝑠 𝑙𝑜𝑎𝑑𝑖𝑛𝑔 3% 𝑠𝑖𝑚𝑝𝑙𝑒 𝑝𝑒𝑟 𝑎𝑛𝑛𝑢𝑚
𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠 𝐼𝑛𝑖𝑡𝑖𝑎𝑙 £200
𝑅𝑒𝑛𝑒𝑤𝑎𝑙 5% 𝑜𝑓 𝑒𝑎𝑐ℎ 𝑝𝑟𝑒𝑚𝑖𝑢𝑚 𝑝𝑎𝑦𝑎𝑏𝑙𝑒 𝑖𝑛 𝑡ℎ𝑒 𝑠𝑒𝑐𝑜𝑛𝑑 𝑎𝑛𝑑
𝑠𝑢𝑏𝑠𝑒𝑞𝑢𝑒𝑛𝑡 𝑦𝑒𝑎𝑟𝑠
𝐴𝑠𝑠𝑢𝑚𝑒 𝑏𝑜𝑛𝑢𝑠 𝑒𝑛𝑡𝑖𝑡𝑙𝑒𝑚𝑒𝑛𝑡 𝑒𝑎𝑟𝑛𝑒𝑑 𝑖𝑚𝑚𝑒𝑑𝑖𝑎𝑡𝑒𝑙𝑦 𝑜𝑛 𝑝𝑎𝑦𝑚𝑒𝑛𝑡 𝑜𝑓 𝑝𝑟𝑒𝑚𝑖𝑢𝑚. [6]
(𝑖𝑖𝑖)𝑂𝑛 30 𝐽𝑢𝑛𝑒 2005 𝑡ℎ𝑒 𝑝𝑜𝑙𝑖𝑐𝑦 𝑖𝑠 𝑠𝑡𝑖𝑙𝑙 𝑖𝑛 𝑓𝑜𝑟𝑐𝑒. 𝐴 𝑡𝑜𝑡𝑎𝑙 𝑜𝑓 £10,000 ℎ𝑎𝑠 𝑏𝑒𝑒𝑛 𝑑𝑒𝑐𝑙𝑎𝑟𝑒𝑑 𝑎𝑠 𝑎 𝑠𝑖𝑚𝑝𝑙𝑒 𝑏𝑜𝑛𝑢𝑠
𝑡𝑜 𝑑𝑎𝑡𝑒 𝑜𝑛 𝑡ℎ𝑒 𝑝𝑜𝑙𝑖𝑐𝑦. 𝑇ℎ𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 𝑐𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒𝑠 𝑟𝑒𝑠𝑒𝑟𝑣𝑒 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑝𝑜𝑙𝑖𝑐𝑦 𝑢𝑠𝑖𝑛𝑔 𝑎 𝑔𝑟𝑜𝑠𝑠 𝑝𝑟𝑒𝑚𝑖𝑢𝑚 𝑝𝑟𝑜𝑠𝑝𝑒𝑐𝑡𝑖𝑣𝑒
𝑏𝑎𝑠𝑖𝑠, 𝑤𝑖𝑡ℎ 𝑡ℎ𝑒 𝑓𝑜𝑙𝑙𝑜𝑤𝑖𝑛𝑔 𝑎𝑠𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛𝑠:
𝑀𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦 𝐴𝑀92 𝑈𝑙𝑡𝑖𝑚𝑎𝑡𝑒
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 4%
𝐵𝑜𝑛𝑢𝑠 𝑙𝑜𝑎𝑑𝑖𝑛𝑔 4% 𝑝𝑒𝑟 𝑎𝑛𝑛𝑢𝑚 𝑠𝑖𝑚𝑝𝑙𝑒
𝑅𝑒𝑛𝑒𝑤𝑎𝑙 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠 5% 𝑜𝑓 𝑒𝑎𝑐ℎ 𝑝𝑟𝑒𝑚𝑖𝑢𝑚
𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑝𝑟𝑜𝑣𝑖𝑠𝑖𝑜𝑛 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑝𝑜𝑙𝑖𝑐𝑦 𝑎𝑠 𝑎𝑡 30 𝐽𝑢𝑛𝑒 2005. [ 5]
𝑸𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝟏𝟎: 𝐴 𝑝𝑒𝑛𝑠𝑖𝑜𝑛 𝑓𝑢𝑛𝑑 ℎ𝑎𝑠 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝑜𝑓 £3 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑑𝑢𝑒 𝑖𝑛 3 𝑦𝑒𝑎𝑟𝑠 𝑡𝑖𝑚𝑒, £5 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑑𝑢𝑒 𝑖𝑛 5 𝑦𝑒𝑎𝑟𝑠 𝑡𝑖𝑚𝑒,
£9 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑑𝑢𝑒 𝑖𝑛 9 𝑦𝑒𝑎𝑟𝑠 𝑡𝑖𝑚𝑒, 𝑎𝑛𝑑 £11 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑑𝑢𝑒 𝑖𝑛 11 𝑦𝑒𝑎𝑟𝑠 𝑡𝑖𝑚𝑒.
𝑇ℎ𝑒 𝑓𝑢𝑛𝑑 ℎ𝑜𝑙𝑑𝑠 𝑡𝑤𝑜 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝑠, 𝑋 𝑎𝑛𝑑 𝑌. 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑋 𝑝𝑟𝑜𝑣𝑖𝑑𝑒𝑠 𝑖𝑛𝑐𝑜𝑚𝑒 𝑜𝑓 £1 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑝𝑎𝑦𝑎𝑏𝑙𝑒 𝑎𝑡 𝑡ℎ𝑒 𝑒𝑛𝑑
𝑜𝑓 𝑒𝑎𝑐ℎ 𝑦𝑒𝑎𝑟 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑛𝑒𝑥𝑡 𝑓𝑖𝑣𝑒 𝑦𝑒𝑎𝑟𝑠 𝑤𝑖𝑡ℎ 𝑛𝑜 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑟𝑒𝑝𝑎𝑦𝑚𝑒𝑛𝑡. 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑌 𝑖𝑠 𝑎 𝑧𝑒𝑟𝑜 𝑐𝑜𝑢𝑝𝑜𝑛 𝑏𝑜𝑛𝑑 𝑤ℎ𝑖𝑐ℎ
𝑝𝑎𝑦𝑠 𝑎 𝑙𝑢𝑚𝑝 𝑠𝑢𝑚 𝑜𝑓 £𝑅 𝑎𝑡 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑛 𝑦𝑒𝑎𝑟𝑠 (𝑤ℎ𝑒𝑟𝑒 𝑛 𝑖𝑠 𝑛𝑜𝑡 𝑛𝑒𝑐𝑒𝑠𝑠𝑎𝑟𝑖𝑙𝑦 𝑎𝑛 𝑖𝑛𝑡𝑒𝑔𝑒𝑟). 𝑇ℎ𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒 𝑖𝑠
8% 𝑝𝑒𝑟 𝑎𝑛𝑛𝑢𝑚 𝑒𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒.
𝐼𝑛𝑣𝑒𝑠𝑡𝑖𝑔𝑎𝑡𝑒 𝑤ℎ𝑒𝑡ℎ𝑒𝑟 𝑣𝑎𝑙𝑢𝑒𝑠 𝑜𝑓 £𝑅 𝑎𝑛𝑑 𝑛 𝑐𝑎𝑛 𝑏𝑒 𝑓𝑜𝑢𝑛𝑑 𝑤ℎ𝑖𝑐ℎ 𝑒𝑛𝑠𝑢𝑟𝑒 𝑡ℎ𝑎𝑡 𝑡ℎ𝑒 𝑓𝑢𝑛𝑑 𝑖𝑠 𝑖𝑚𝑚𝑢𝑛𝑖𝑠𝑒𝑑 𝑎𝑔𝑎𝑖𝑛𝑠𝑡
𝑠𝑚𝑎𝑙𝑙 𝑐ℎ𝑎𝑛𝑔𝑒𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒. [8]
MOCK PAPER 1 CM1 MM:100 TIME: 3h 15 min
𝑸𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝟏𝟏 ∶ 𝐴 ℎ𝑒𝑎𝑙𝑡ℎ 𝐼𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒 𝑝𝑟𝑜𝑣𝑖𝑑𝑒𝑟 𝑝𝑟𝑖𝑐𝑒𝑠 𝑖𝑡𝑠 𝑣𝑎𝑟𝑖𝑜𝑢𝑠 𝑠𝑖𝑐𝑘𝑛𝑒𝑠𝑠 𝑖𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒 𝑐𝑜𝑛𝑡𝑎𝑐𝑡 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒
𝑓𝑜𝑙𝑙𝑜𝑤𝑖𝑛𝑔 𝑡ℎ𝑟𝑒𝑒 𝑠𝑡𝑎𝑡𝑒 𝑚𝑜𝑑𝑒𝑙 𝑖𝑛 𝑤ℎ𝑖𝑐ℎ 𝑡ℎ𝑒 𝑓𝑜𝑟𝑐𝑒𝑠 𝑜𝑓 𝑡𝑟𝑎𝑛𝑠𝑖𝑡𝑖𝑜𝑛 𝑑𝑒𝑝𝑒𝑛𝑑 𝑜𝑛 𝑎𝑔𝑒
𝑆𝑡𝑎𝑡𝑒 𝑖𝑛 𝑤𝑜𝑟𝑑𝑠 𝑒𝑥𝑎𝑐𝑡𝑙𝑦 𝑤ℎ𝑎𝑡 𝑡ℎ𝑒 𝑓𝑜𝑙𝑙𝑜𝑤𝑖𝑛𝑔 𝑚𝑎𝑡ℎ𝑒𝑚𝑎𝑡𝑖𝑐𝑎𝑙 𝑒𝑥𝑝𝑟𝑒𝑠𝑒𝑠𝑠𝑖𝑜𝑛 𝑟𝑒𝑝𝑟𝑒𝑠𝑒𝑛𝑡
25 𝐻𝐻 𝐻𝑆
(𝑎) 100,000 ∫0 𝑒 −𝛿𝑡 (𝑡 𝑝35 𝜇35+𝑡 + 𝑡 𝑝35 𝜈35+𝑡 ) 𝑑𝑡
5
̅𝐻
𝐻 ̅
(𝑏) 20000 ∫ 𝑒 −𝛿𝑡 𝑡 𝑝55 𝜎55+𝑡 𝑑𝑡
0
40
(𝑐) 10000 𝑒 −40𝛿 exp (− ∫0 𝜎20+𝑡 + 𝜇20+𝑡 ) 𝑑𝑡 ) [6]
𝑸𝒖𝒆𝒔𝒕𝒊𝒐𝒏 12: 𝐴 𝑙𝑜𝑎𝑛 𝑖𝑠 𝑟𝑒𝑝𝑎𝑦𝑎𝑏𝑙𝑒 𝑏𝑦 𝑎𝑛 𝑎𝑛𝑛𝑢𝑖𝑡𝑦 𝑤ℎ𝑖𝑐ℎ 𝑖𝑠 𝑝𝑎𝑦𝑎𝑏𝑙𝑒 𝑎𝑛𝑛𝑢𝑎𝑙𝑙𝑦 𝑖𝑛 𝑎𝑟𝑟𝑒𝑎𝑟𝑠 𝑓𝑜𝑟 12 𝑦𝑒𝑎𝑟𝑠. 𝑃𝑎𝑦𝑚𝑒𝑛𝑡𝑠
𝑑𝑢𝑟𝑖𝑛𝑔 𝑡ℎ𝑒 𝑓𝑖𝑟𝑠𝑡 6 𝑦𝑒𝑎𝑟𝑠 𝑎𝑟𝑒 1000 𝑒𝑎𝑐ℎ 𝑎𝑛𝑑 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑟𝑒𝑚𝑎𝑖𝑛𝑑𝑒𝑟 𝑜𝑓 𝑡ℎ𝑒 𝑡𝑒𝑟𝑚 𝑎𝑟𝑒 2000 𝑒𝑎𝑐ℎ. 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑟𝑒 6% 𝑝𝑒𝑟
𝑎𝑛𝑛𝑢𝑚.
(𝑖) 𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑙𝑜𝑎𝑛. [2]
(𝑖𝑖) 𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑎𝑛𝑑 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑙𝑒𝑚𝑒𝑛𝑡𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑓𝑖𝑓𝑡ℎ 𝑟𝑒𝑝𝑎𝑦𝑚𝑒𝑛𝑡. [5]
(𝑖𝑖𝑖) 𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑡𝑜𝑡𝑎𝑙 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑝𝑎𝑖𝑑 𝑑𝑢𝑟𝑖𝑛𝑔 𝑡ℎ𝑒 𝑡𝑒𝑟𝑚 𝑜𝑓 𝑡ℎ𝑒 𝑙𝑜𝑎𝑛. [2]
