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Subjects · Leaving Cert Applied Maths

Leaving Cert Applied Maths: Loans, savings & finance models

How often Loans, savings & finance models comes up on the Applied Maths papers, every year it was asked, and questions to try.

OL Asked on 3 of the last 3 Ordinary Level papers, most recently in 2025. banker

Loans, savings & finance models, Ordinary Level(7 marks)

Quick ones on Loans, savings & finance models.

(a)€1000 is saved at 2% per year compound interest. Value after 2 years?
  1. €1040.00
  2. €1040.40
  3. €1020.00
(b)Interest is 0.5% per month. What multiplier is used each month?
  1. 0.005
  2. 1.05
  3. 1.005
(c)Savings model Sₙ₊₁ = 1.01Sₙ + 100. What does the 100 represent?
  1. A fixed deposit each period
  2. The amount at the start
  3. The interest rate
Show the answers

(a) €1040.40

(b) 1.005

(c) A fixed deposit each period

Your turn: Ordinary Level questions on Loans, savings & finance models.

Ordinary Level

Asked on 3 of the last 3 Ordinary Level papers, most recently in 2025. banker

Every paper, year by year

YearWhere it came up
2025Q8
2024Q10
2023Q8

Links open the State Examinations Commission’s paper for that year.

More Loans, savings & finance models questions

Loans, savings & finance models, 2 marks

Why is the total repaid on a loan more than the amount borrowed?

  1. The repayments get bigger each month
  2. Loans are rounded up to the next €1000
  3. Interest is charged on the balance owed
Show the answer

Interest is charged on the balance owed

Each period interest is added to what is still owed, and the repayments must cover this interest as well as the amount borrowed.

Loans, savings & finance models, 3 marks

A loan of €25,000 follows Lₙ₊₁ = 1.01Lₙ − 250 (monthly). What happens to the balance?

  1. It falls by €250 each month
  2. It stays at €25,000
  3. It is cleared after 100 months
Show the answer

It stays at €25,000

1% of €25,000 is €250 interest a month, which the €250 repayment exactly cancels. The balance never falls: €25,000 is the steady state.

Loans, savings & finance models, 3 marks

€2500 is saved at 4% per year compound interest. Interest earned in the 2nd year?

  1. €104.00
  2. €100.00
  3. €204.00
Show the answer

€104.00

After year 1 the balance is €2600. Year 2 interest = 4% of 2600 = €104. €100 is simple interest; €204 is the interest for both years together.

Other Applied Maths topics

All of Leaving Cert Applied Maths