You may also like

problem icon

Ball Bearings

If a is the radius of the axle, b the radius of each ball-bearing, and c the radius of the hub, why does the number of ball bearings n determine the ratio c/a? Find a formula for c/a in terms of n.

problem icon

Air Routes

Find the distance of the shortest air route at an altitude of 6000 metres between London and Cape Town given the latitudes and longitudes. A simple application of scalar products of vectors.

problem icon

Epidemic Modelling

Use the computer to model an epidemic. Try out public health policies to control the spread of the epidemic, to minimise the number of sick days and deaths.

Debt Race

Age 16 to 18 Challenge Level:

On 1st June 2008 five people A, B, C, D and E each borrow $100,000.

Each year, starting 1st June 2009, each is charged interest on the amount owed at the start of the previous year, which is added to the balance. Each year, each will pay off a lump sum of their debt, which is taken from the balance.

The rates and amounts for each borrower is as follows:

3% 6% 9% 12% 15%
$12,000 $14,000 $16,000 $18,000

The question is this: Which borrower will be the first to pay off their debt?

Extension: You might like to consider the importance of the figure $100,000 in this calculation