N= 2

Learning Outcome Investigation 1 - Problems with Compound Interests Mr. Blankson has a 10,000 investment to make and asiproaches you for professional advice. Consider both six year investment bonds below and suggest to him, which tand you would recommend Biond A: a fixed semi-annual compound interest rate of 4% per annum Bond B: An Introductory compound interest rate of 5 per year for the first 2 years. The interest rate then decreases by 0.5% each year to a minimum of 19 Prepare a report highlighting the benefits and risks if any of both bonds and the reason(s) for your recommendations. Learning Outcome Task 1 - Types of Interest (Maximum 9 marks) Explain the different types of interest that may be paid on an investment eg, simple interest and compound interest including rates convertible monthly, semi- annually etc. An investment pays simple interest, but there is no charge for withdrawing the money and reinvesting the proceeds in a new identical investment. Use this situation to explain why simple interest is rarely used in practice. LOS demonstrate mathematical literacy by consistently using correct Mathematical notation, terminology, conventions, and relevant diagrams and graphs LO2) evaluate the strengths and weaknesses of alternative models and consequently of any conclusions drawn Task 2 - Investment Returns (Maximum 9 marks) Learning Outcome Calculate how much Mr. Blericson would receive if he invested in Bond A and separately in Blond Find the equivalent annual interest rates for both Bands You must show all your working 01) demonstrate mathematical literacy by consistently ng correct Mathematical notation, terminology, conventions, and relevant diagrams and graphs LO2) evaluate the strengths and weaknesses of alternative models and consequently of any conclusions drawn L06) use a range of IT packages, including calculators, spreadsheets, word processors and skills In the analysis and solution of business problems CODE: Task 3 - Comparison (Maximum marks 3 marks) Learning Outcome Prepare a summary explaining which Band you would recommend and why. You should also discuss any other details Mr. Blanksion should consider in making his decision LO7) communicate their work effectively, presenting their solutions using an appropriate medium LO2) evaluate the strengths and weaknesses of alternative models and consequently of any condusions drawn: Investigation 4 - Depreciation Learning Outcome You are the accountant for a particular company and are considering different models for the depreciation on a particular asset. Model A: The value of the asset under this model Va, decreases in value by A % each year and is modelled by an exponential decay i.e. LO3) identify, simplify and abstract the underlying mathematical structure of a business situation allowing a business-related problem to be modelled; Vi = Voet Model B: The value of the asset under this model V, decreases in value by a fixed amount each year i.e. is modelled as a straight line LO4) solve a range of business -related problems either deterministically or probabilistically as appropriate; Vo = V - Bt Under Model A the asset's value is halved after TA = n + 5 years, where n is the last non-zero digit in your student identity number (SID). Under Model B it is halved after Tg = n + 10 years. Task 7 - Calculating Depreciation (Maximum Mark 12) Learning Outcome Use the information given to find the values of A and B. Find: - LO1) demonstrate mathematical literacy by consistently using correct Mathematical notation, terminology, conventions, and relevant diagrams and graphs; . the percentage of the value of the asset using Model B compared with Model A at time TB, the time (T>0) to the nearest month when the value using both models is the same. On the same diagram plot the graphs of V, and V, against time. LO3) identify, simplify and abstract the underlying mathematical structure of a business situation allowing a business-related problem to be modelled; LO7) communicate their work effectively, presenting their solutions using an appropriate medium. Learning Outcome Investigation 1 - Problems with Compound Interests Mr. Blankson has a 10,000 investment to make and asiproaches you for professional advice. Consider both six year investment bonds below and suggest to him, which tand you would recommend Biond A: a fixed semi-annual compound interest rate of 4% per annum Bond B: An Introductory compound interest rate of 5 per year for the first 2 years. The interest rate then decreases by 0.5% each year to a minimum of 19 Prepare a report highlighting the benefits and risks if any of both bonds and the reason(s) for your recommendations. Learning Outcome Task 1 - Types of Interest (Maximum 9 marks) Explain the different types of interest that may be paid on an investment eg, simple interest and compound interest including rates convertible monthly, semi- annually etc. An investment pays simple interest, but there is no charge for withdrawing the money and reinvesting the proceeds in a new identical investment. Use this situation to explain why simple interest is rarely used in practice. LOS demonstrate mathematical literacy by consistently using correct Mathematical notation, terminology, conventions, and relevant diagrams and graphs LO2) evaluate the strengths and weaknesses of alternative models and consequently of any conclusions drawn Task 2 - Investment Returns (Maximum 9 marks) Learning Outcome Calculate how much Mr. Blericson would receive if he invested in Bond A and separately in Blond Find the equivalent annual interest rates for both Bands You must show all your working 01) demonstrate mathematical literacy by consistently ng correct Mathematical notation, terminology, conventions, and relevant diagrams and graphs LO2) evaluate the strengths and weaknesses of alternative models and consequently of any conclusions drawn L06) use a range of IT packages, including calculators, spreadsheets, word processors and skills In the analysis and solution of business problems CODE: Task 3 - Comparison (Maximum marks 3 marks) Learning Outcome Prepare a summary explaining which Band you would recommend and why. You should also discuss any other details Mr. Blanksion should consider in making his decision LO7) communicate their work effectively, presenting their solutions using an appropriate medium LO2) evaluate the strengths and weaknesses of alternative models and consequently of any condusions drawn: Investigation 4 - Depreciation Learning Outcome You are the accountant for a particular company and are considering different models for the depreciation on a particular asset. Model A: The value of the asset under this model Va, decreases in value by A % each year and is modelled by an exponential decay i.e. LO3) identify, simplify and abstract the underlying mathematical structure of a business situation allowing a business-related problem to be modelled; Vi = Voet Model B: The value of the asset under this model V, decreases in value by a fixed amount each year i.e. is modelled as a straight line LO4) solve a range of business -related problems either deterministically or probabilistically as appropriate; Vo = V - Bt Under Model A the asset's value is halved after TA = n + 5 years, where n is the last non-zero digit in your student identity number (SID). Under Model B it is halved after Tg = n + 10 years. Task 7 - Calculating Depreciation (Maximum Mark 12) Learning Outcome Use the information given to find the values of A and B. Find: - LO1) demonstrate mathematical literacy by consistently using correct Mathematical notation, terminology, conventions, and relevant diagrams and graphs; . the percentage of the value of the asset using Model B compared with Model A at time TB, the time (T>0) to the nearest month when the value using both models is the same. On the same diagram plot the graphs of V, and V, against time. LO3) identify, simplify and abstract the underlying mathematical structure of a business situation allowing a business-related problem to be modelled; LO7) communicate their work effectively, presenting their solutions using an appropriate medium