IB MATH AI HL, Paper 2, May, 2021, TZ1, Solved Past Paper

Let's figure out how much Daisy's initial amount of money will have grown to after two full years. We will consider any interest that may be added over this time.

Consider a situation where the balance in a fixed deposit account grows over a period of m months. The question is to determine when the account balance first exceeds 50,000 AUD.

Specifically, we need to calculate the smallest integer value for m, given that m belongs to the set of natural numbers, ℕ. This will indicate the earliest time, in months, that the account balance surpasses the specified amount.

Daisy has been saving money for her goal, which is to buy her own place to live—a brand new apartment that costs 200,000 Australian dollars (AUD). She's managed to put together a 25% down payment upfront for this significant purchase. For the remaining amount, she's going to take a financial leap and borrow the money through a loan.

Consider the amount Daisy will need to borrow as her loan to cover the rest of the apartment's cost beyond her initial payment.

Daisy has a loan that she will be paying off over the course of 10 years. The loan's interest is calculated on a monthly basis, which means that the amount of interest she needs to pay grows every month before she makes her payment. After the interest is added, Daisy makes a payment of 1,700 AUD at the end of each month. We need to dig into the specifics of this loan.