Compound Interest

Question 1

Formula to find multiplier in Appreciation Question

Answer 1

100%+(given % e.g 3%)
=103%
=103/100
=1.03

Question 2

Formula to find Multiplier in Depreciation Question

Answer 2

100%-(given percent e.g. 3%)
=97%
=97/100
=0.97

Question 3

Tracy buys a car for £12000. The value decreases by 5% each year. Calculate the value of the car after 4 years.

Answer 3

12000 x (0.97)^4
=10623.51372
=£10623.51

Question 4

Liam buys a house for £578000. The value of the house increases by 2% each year. Calculate the value of the house after 5 years.

Answer 4

578000 x (1.02)^5
=638158.7042
=£638158.70

Question 5

In the evening, the temperature in a greenhouse drops by 4% per hour. At 8pm the temperature is 28 degreesC. What will the temperature be at 11pm?

Answer 5

28 x (0.96)^3
=24.772608
=25degreesC