IB · Mathematics: Analysis & Approaches SL & HL · Number & algebra

Financial applications: IB Mathematics: Analysis & Approaches questions with answers

Free Financial applications questions for IB Mathematics: Analysis & Approaches (SL & HL), part of Number & algebra. Each question has the answer and the marking points an examiner would look for.

Generate a full Financial Applications worksheet →All Number & algebra questions

Financial applications practice questions

Question 1Structured · 7 marksA* challenge

Account A pays 5% per year compounded annually. Account B pays 4.8% per year compounded monthly. Mei invests $5000 for 10 years.

(a)

Determine which account gives the larger final amount, and by how much, to the nearest dollar.

[4]
(b)

Find the minimum nominal annual rate, compounded monthly, needed for an investment to double in 15 years. Give your answer to two decimal places.

[3]
Show answers and mark scheme
PartAnswer and marking pointsMarks
(a)A, by $72
A: 5000(1 + 0.05)10 = 8144.47 (M1)(A1)
B: 5000(1 + 4.81200)120 = 8072.64 (A1)
A by $72 A1
4
(b)4.63%
(1 + r1200)180 = 2 (M1)
attempt to solve, e.g. TVM solver (M1)
r = 4.63% A1
3
Question 2Structured · 6 marks

Kiran invests $3500 in an account that pays a nominal annual interest rate of 4.2%, compounded monthly.

(a)

Find the value of the investment after 8 years, giving your answer to the nearest dollar.

[3]
(b)

Find the number of complete years until the value of the investment first exceeds $7000.

[3]
Show answers and mark scheme
PartAnswer and marking pointsMarks
(a)$4895
N = 96, I% = 4.2, PV = −3500, P/Y = C/Y = 12, or 3500(1 + 4.21200)96 (M1)(A1)
$4895 A1
3
(b)17 years
3500(1 + 4.21200)12n > 7000 (M1)
n > 16.5 (A1)
17 years A1
3
Question 3Structured · 7 marks

A loan of $250000 is taken out at a nominal annual interest rate of 4.2%, compounded monthly. It is repaid with equal monthly payments over 20 years.

(a)

Find the monthly payment, to the nearest cent.

[3]
(b)

Find the total amount of interest paid over the whole loan.

[2]
(c)

Find the amount still owed after 10 years.

[2]
Show answers and mark scheme
PartAnswer and marking pointsMarks
(a)$1541.43
N = 240, I% = 4.2, PV = 250000, FV = 0, P/Y = C/Y = 12 (M1)(A1)
$1541.43 A1
3
(b)$119942.44
240 × 1541.43 − 250000 (M1)
$119942.44 A1
2
(c)$150826.94
N = 120 in the TVM solver, find FV (M1)
$150826.94 A1
2
Question 4Structured · 7 marksA* challenge

Account A pays 5% per year compounded annually. Account B pays 4.8% per year compounded monthly. Mei invests $10000 for 8 years.

(a)

Determine which account gives the larger final amount, and by how much, to the nearest dollar.

[4]
(b)

Find the minimum nominal annual rate, compounded monthly, needed for an investment to double in 10 years. Give your answer to two decimal places.

[3]
Show answers and mark scheme
PartAnswer and marking pointsMarks
(a)A, by $104
A: 10000(1 + 0.05)8 = 14774.55 (M1)(A1)
B: 10000(1 + 4.81200)96 = 14670.21 (A1)
A by $104 A1
4
(b)6.95%
(1 + r1200)120 = 2 (M1)
attempt to solve, e.g. TVM solver (M1)
r = 6.95% A1
3
Question 5Structured · 6 marks

Kiran invests $3500 in an account that pays a nominal annual interest rate of 2.4%, compounded monthly.

(a)

Find the value of the investment after 8 years, giving your answer to the nearest dollar.

[3]
(b)

Find the number of complete years until the value of the investment first exceeds $7000.

[3]
Show answers and mark scheme
PartAnswer and marking pointsMarks
(a)$4240
N = 96, I% = 2.4, PV = −3500, P/Y = C/Y = 12, or 3500(1 + 2.41200)96 (M1)(A1)
$4240 A1
3
(b)29 years
3500(1 + 2.41200)12n > 7000 (M1)
n > 28.9 (A1)
29 years A1
3
Question 6Structured · 7 marks

A loan of $12000 is taken out at a nominal annual interest rate of 5.4%, compounded monthly. It is repaid with equal monthly payments over 5 years.

(a)

Find the monthly payment, to the nearest cent.

[3]
(b)

Find the total amount of interest paid over the whole loan.

[2]
(c)

Find the amount still owed after 3 years.

[2]
Show answers and mark scheme
PartAnswer and marking pointsMarks
(a)$228.66
N = 60, I% = 5.4, PV = 12000, FV = 0, P/Y = C/Y = 12 (M1)(A1)
$228.66 A1
3
(b)$1719.63
60 × 228.66 − 12000 (M1)
$1719.63 A1
2
(c)$5190.84
N = 36 in the TVM solver, find FV (M1)
$5190.84 A1
2

More Number & algebra questions

Sequences & seriesExponents & logarithmsBinomial theoremProofCounting principlesPartial fractionsComplex numbersInduction, contradiction & counterexampleSystems of linear equations

Want a mentor, not just a paper?

Riyaz Shaikh has mentored IGCSE, IB and A Level students for 15+ years, one-on-one, online and in Mumbai. The hardest questions on this site are the ones he uses to find a student's weak points.

Meet Riyaz →

Original IB-style practice questions written for mentorriyaz.in. These are not IB past paper questions, and this site is not affiliated with or endorsed by the International Baccalaureate Organization. Updated 2026-11-04. Paper generator · mentorriyaz.in