Unit 1: Number and Algebra

Topic 1.4: Financial Mathematics Questions

Practice 10 exam-style questions for IB Math AA SL Topic 1.4. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.

1Find3 marks
2026Aimnova practice — 1.4.2
A car is worth $32 000 and depreciates by 14% each year.
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2Find4 marks
2026Aimnova practice — 1.4.3
An investment of $6000 earns 5.5% per year, compounded annually. Find the number of whole years before it first exceeds $9000.
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3Find4 marks
2026Aimnova practice — 1.4.1
$4000 is invested at 6% per year, compounded monthly. Find the value after 5 years, to the nearest dollar.
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4Find4 marks
2026Aimnova practice — 1.4.1
$2000 is invested at 8% per year, compounded quarterly.
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5Find4 marks
2026Aimnova practice — 1.4.1
On Paper 1 (no calculator), a binomial expansion lets you evaluate a compound-interest amount by hand.
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6Find4 marks
2026Aimnova practice — 1.4.3
$8000 is invested at 4.5% per year, compounded monthly. Find the number of whole years before the investment first exceeds $10 000.
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7Find4 marks
2026Aimnova practice — 1.4.3
$5000 is invested at a nominal annual rate of r% compounded quarterly. After 4 years it is worth $6500. Find r, to two decimal places.
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8Find4 marks
2026Aimnova practice — 1.4.1
Maria invests $6000 at 3.5% per year, compounded half-yearly. Find the interest she earns after 6 years, to the nearest dollar.
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9Find3 marks
2026Aimnova practice — 1.4.2
The value of a machine is modelled by V = 45 000(0.88)ᵗ dollars, t years after purchase.
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10Find4 marks
2026Aimnova practice — 1.4.3
$12 000 invested for 5 years, compounded monthly, grows to $15 000. Find the annual interest rate r, to two decimal places.
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