| What to create | Exam |
| Which subject | Mathematics |
| What age group | Year or Grade 11 |
| What topic | Simple interest, compound interest, inflation, tax |
| Question types | Open-ended |
| Number of questions | 10 |
| Number of answers | 4 |
| Correct answers | Exactly 1 |
| Show correct answers | |
| Use images (descriptions) | |
| Any other preferences |
Answer the following questions to the best of your ability. Each question is designed to assess your understanding of the topics mentioned. Good luck!
Define Simple Interest.
What is the formula for calculating simple interest, and what do each of the variables in the formula represent?
Calculate Simple Interest.
If you invest $1,500 at a simple interest rate of 5% per annum for 3 years, how much interest will you earn?
Define Compound Interest.
How does compound interest differ from simple interest, and what is the formula used to calculate it?
Calculate Compound Interest.
You invested $2,000 in an account that offers an annual compound interest rate of 6%. How much total money will you have after 4 years? (Assume interest is compounded annually).
Understanding Inflation.
What is inflation, and how does it affect the purchasing power of money? Provide a real-world example.
Calculate Real Interest Rate.
If the nominal interest rate on a savings account is 7% and the inflation rate is 3%, what is the real interest rate?
Understanding Taxation.
Explain what a tax rate is and how it affects your income. What are the implications of having a progressive tax system?
Calculate Tax Owed.
If you earn a taxable income of $45,000 and are subjected to a flat tax rate of 20%, what is the amount of tax you would owe?
Long-Term Effects of Inflation.
How does long-term inflation impact savings, and what strategies can individuals use to protect their savings from inflation?
Comparison of Interest Types.
In what scenarios would one prefer to use simple interest over compound interest, and vice versa? Provide two scenarios for each.
Make sure to show your work for calculation-based questions and provide detailed explanations for conceptual questions.