AQA Certificate Level 3 Mathematical Studies₁₃₅₀

These formulae are not required to be learnt. A clean copy of this formulae sheet will be issued to you in the examination.

7.1 Volume and surface area

7.2 Financial calculation - AER

The annual effective interest rate (AER), $\mathit{r}$ , is given by

$\mathit{r}\mathsf{=}{\left(\mathsf{1}\mathsf{+}\frac{\mathit{i}}{\mathit{n}}\right)}^{\mathit{n}}\mathsf{-}\mathsf{1}$

where $\mathit{i}$ is the nominal interest rate, and $\mathit{n}$ is the number of compounding periods per year.

Note: the values of $\mathit{i}$ and $\mathit{r}$ should be expressed as decimals.

7.3 Financial calculation - APR

The annual percentage interest rate (APR) is given by

$\mathit{C}\mathsf{=}\underset{\mathit{k}\mathsf{=}\mathsf{1}}{\overset{\mathit{m}}{\mathsf{\Sigma }}}\mathsf{\left(}\frac{{\mathit{A}}_{\mathit{k}}}{{\mathsf{\left(}\mathsf{1}\mathsf{+}\mathit{i}\mathsf{\right)}}^{{\mathit{t}}_{\mathit{k}}}}\mathsf{\right)}$

where $\mathit{\pounds }\mathit{C}$ is the amount of the loan, $\mathit{m}$ is the number of repayments, $\mathit{i}$ is the APR expressed as a decimal, $\mathit{\pounds }{\mathit{A}}_{\mathit{k}}$ is the amount of the $\mathit{k}$ th repayment, ${\mathit{t}}_{\mathit{k}}$ is the interval in years between the start of the loan and the $\mathit{k}$ th repayment.

It may be assumed that there are no arrangement or exit fees.