Home / Assignments / MCR3U Unit 5
✎ TruMath Assignment

MCR3U Financial Applications
Grade 11 Unit 5 — practice questions with full solutions

Compound interest, present and future value, and annuities — the strand that connects sequences to real money decisions.

Free MCR3U financial applications practice for Grade 11 students in Ontario. These 5 questions cover the same material as a typical unit test or exam review on this topic, and every one comes with a complete worked solution — not just an answer key. Useful whether you are preparing for a MCR3U unit test, catching up on a lesson, or reviewing before the final exam.
MCR3U · Grade 11 Discrete Functions 4 core 1 challenge
1Core
Find the amount of $5000 invested at 6% per year compounded monthly for 4 years, to the nearest cent.
Show the full solution
  1. Use A = P(1 + i)n, where i is the rate per period and n the number of periods.
  2. Monthly rate: i = 0.06 ÷ 12 = 0.005. Periods: n = 4 × 12 = 48.
  3. A = 5000(1.005)⁴⁸.
  4. (1.005)⁴⁸ ≈ 1.270489, so A ≈ 5000 × 1.270489 ≈ 6352.45.
Final answer≈ $6352.45
2Core
How much must be invested now at 5% per year compounded annually to have $10 000 in 8 years?
Show the full solution
  1. This asks for present value: PV = A ÷ (1 + i)n.
  2. Here A = 10000, i = 0.05, n = 8.
  3. (1.05)⁸ ≈ 1.477455.
  4. PV ≈ 10000 ÷ 1.477455 ≈ 6768.39.
Final answer≈ $6768.39
3Core
$200 is deposited at the end of each month into an account paying 4.8% per year compounded monthly. Find the amount after 5 years.
Show the full solution
  1. This is an ordinary annuity: FV = R[(1 + i)n − 1] ÷ i.
  2. R = 200, i = 0.048 ÷ 12 = 0.004, n = 60.
  3. (1.004)⁶⁰ ≈ 1.2706407, so the numerator is 200 × 0.2706407 ≈ 54.12814.
  4. Divide by i: 54.12814 ÷ 0.004 ≈ 13532.04.
Final answer≈ $13 532.04
4Core
Compare $8000 invested for 3 years at 7% compounded annually versus 6.9% compounded monthly. Which earns more, and by how much?
Show the full solution
  1. Annual option: A = 8000(1.07)³ ≈ 8000 × 1.225043 ≈ $9800.34.
  2. Monthly option: i = 0.069 ÷ 12 = 0.00575, n = 36.
  3. (1.00575)³⁶ ≈ 1.2292536, so A ≈ 8000 × 1.2292536 ≈ $9834.03.
  4. Difference: 9834.03 − 9800.34 ≈ $33.68.
  5. The lower stated rate wins because compounding more often more than makes up the 0.1% gap.
Final answer6.9% monthly earns ≈ $33.68 more
5Challenge
A car loan of $22 000 is repaid with equal monthly payments over 5 years at 6% per year compounded monthly. Find the monthly payment, to the nearest cent.
Show the full solution
  1. Use the present-value annuity formula: PV = R[1 − (1 + i)−n] ÷ i.
  2. i = 0.06 ÷ 12 = 0.005 and n = 60.
  3. (1.005)−60 ≈ 0.741372, so 1 − 0.741372 = 0.258628.
  4. Divide by i: 0.258628 ÷ 0.005 ≈ 51.72556.
  5. Solve for R: 22000 ÷ 51.72556 ≈ 425.32.
Final answer≈ $425.32 per month

MCR3U Financial Applications — common questions

Short answers to the things students ask most about this unit.

What is the difference between future value and present value?

Future value asks what an amount will grow to. Present value asks how much you need to invest now to reach a target amount later.

Why does compounding monthly beat compounding annually at the same rate?

Interest gets added to the balance more often, so later interest is calculated on a slightly larger amount each time. More compounding periods means more growth.

More MCR3U practice — grade 11 functions

MCR3U Functions & TransformationsMCR3U Quadratic FunctionsMCR3U Exponential FunctionsMCR3U Sequences & SeriesAll MCR3U units
← Unit 4: Sequences & SeriesUnit 6: Trigonometric Functions →
Practice is step one

The classes teach the method behind every one of these.

The solutions above show the steps. The classes teach how to think about the problem in the first place — interactive, and worked through at the student’s own pace. Try 3 complete classes free — no payment required to begin.

Try 3 Classes Free →