Interest, Investment and Borrowing
Interactive practice questions
A bank is offering these interest rates to attract investment in term deposits.
Interest is calculated at the end of the investment term.
| Investment amount | ||||
|---|---|---|---|---|
| Term | $\$10000$$10000 up to $\$25000$$25000 | $\$25000$$25000 up to $\$60000$$60000 | $\$60000$$60000 up to $\$120000$$120000 | $\$120000$$120000 up to $\$240000$$240000 |
| $2$2 up to $4$4 months | $2.5%$2.5% | $2.5%$2.5% | $2.5%$2.5% | $2.5%$2.5% |
| $4$4 up to $8$8 months | $2.6%$2.6% | $2.6%$2.6% | $2.6%$2.6% | $2.6%$2.6% |
| $8$8 up to $12$12 months | $7%$7% | $7%$7% | $7%$7% | $7%$7% |
| $12$12 up to $24$24 months | $5.25%$5.25% | $5.25%$5.25% | $5.25%$5.25% | $5.25%$5.25% |
| $24$24 up to $36$36 months | $5.45%$5.45% | $5.45%$5.45% | $5.45%$5.45% | $5.45%$5.45% |
a
What is the minimum amount that can be invested in a term deposit?
b
Do the interest rates change as the amount invested increases?
Yes
A
No
B
c
The bank appears to have a special rate for a period of time.
What investment term receives this rate?
$\editable{}$ up to $\editable{}$ months.
Easy
1min
Two term deposits were offered.
Easy
1min
Let's explore the growth of a term deposit over $5$5 years.
$\$5000$$5000 was invested at $3.2%$3.2%.
Interest is compounded annually.
Easy
6min
Let's explore the growth of a debenture over $5$5 years.
$\$2000$$2000 was invested at $5.1%$5.1%.
Interest is compounded annually.
Easy
6min
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