Money

12 Grade 8 Mathematics questions on Money, with worked marking schemes. 12 questions are available on this topic in full.

1. Question 1

   1 mark

   Find the simple interest on Ksh 12,000 at 8% per annum for 3 years.

   A. Ksh 2,880

   B. Ksh 960

   C. Ksh 14,880

   D. Ksh 288

   (1 mark)

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2. Question 2

   3 marks

   A motorcycle is sold on hire purchase for a deposit of Ksh 15,000 and 10 monthly installments of Ksh 3,500.

   (a) Find the total hire purchase price. (2 marks)

   (b) If the cash price is Ksh 45,000, how much more is paid on hire purchase? (1 mark)

   Marking scheme

   (a) The hire purchase price is the deposit plus all the instalments. The instalments come to $10\times 3,500=35,000$. (1)

   Add the deposit: $15,000+35,000=50,000$. (1)

   (b) The extra paid is the difference between the two prices: $50,000-45,000=5,000$. (1)

   Final answer: the hire purchase price is Ksh $50,000$, which is Ksh $5,000$ more than the cash price.

3. Question 3

   3 marks

   Calculate the compound interest on Ksh 20,000 at 10% per annum for 2 years.

   (3 marks)

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4. Question 4

   1 mark

   A phone is bought on hire purchase with a deposit of Ksh 4,000 and 10 monthly installments of Ksh 2,200. Find the total hire purchase price.

   A. Ksh 22,000

   B. Ksh 30,000

   C. Ksh 24,000

   D. Ksh 26,000

   (1 mark)

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5. Question 5

   3 marks

   Ksh 16,000 is invested at 5% per annum compound interest for 2 years. Find the amount at the end of the period.

   (3 marks)

   Marking scheme

   Under compound interest each year's interest is worked out on the new balance, so the amount is $P(1+r{)}^n$. (1)

   Here $P=16,000$, $r=5\%=0.05$ and $n=2$, so the amount is $16,000\times (1.05{)}^2=16,000\times 1.1025$. (1)

   $16,000\times 1.1025=17,640$. (1)

   Final answer: Ksh $17,640$. Year by year: $16,000\to 16,800\to 17,640$.

6. Question 6

   1 mark

   A fridge is bought on hire purchase with a deposit of Ksh 5,000 and 12 monthly installments of Ksh 2,000. Find the total hire purchase price.

   A. Ksh 24,000

   B. Ksh 17,000

   C. Ksh 29,000

   D. Ksh 34,000

   (1 mark)

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7. Question 7

   1 mark

   Find the simple interest on Ksh 15,000 at 6% per annum for 4 years.

   A. Ksh 900

   B. Ksh 3,600

   C. Ksh 360

   D. Ksh 18,600

   (1 mark)

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8. Question 8

   1 mark

   A car worth Ksh 800,000 depreciates by 10% per year. Find its value after one year.

   A. Ksh 880,000

   B. Ksh 720,000

   C. Ksh 80,000

   D. Ksh 790,000

   (1 mark)

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9. Question 9

   1 mark

   At what rate per annum will Ksh 5,000 earn a simple interest of Ksh 600 in 2 years?

   A. 6%

   B. 12%

   C. 3%

   D. 24%

   (1 mark)

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10. Question 10

    1 mark

    Ksh 10,000 is invested at 10% per annum compound interest. Find the amount after 2 years.

    A. Ksh 12,000

    B. Ksh 2,100

    C. Ksh 11,000

    D. Ksh 12,100

    (1 mark)

    Marking scheme

    D. Ksh $12,100$ — under compound interest the second year earns interest on the first year's balance too, so the amount is $P(1+r{)}^n=10,000\times 1.1^2=12,100$. A is what simple interest would give, and the extra $100$ is exactly the interest earned on the first year's interest.

11. Question 11

    1 mark

    A piece of land worth Ksh 50,000 appreciates by 8% in one year. Find its new value.

    A. Ksh 54,000

    B. Ksh 46,000

    C. Ksh 4,000

    D. Ksh 58,000

    (1 mark)

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12. Question 12

    1 mark

    Find the simple interest on Ksh 8,000 at 5% per annum for 2 years.

    A. Ksh 400

    B. Ksh 8,800

    C. Ksh 800

    D. Ksh 80

    (1 mark)

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