Unit 2 - Personal Finance : Percentages

Question 1

Increasing with multipliers

Answer 1

If you wanted to increase a number by 25%, you would multiply your number by 1.25 as 100+25=125

Question 2

Decreasing with multipliers

Answer 2

If you wanted to decrease a number by 25%, you would multiply your number by 0.75 as 100-25=75

Question 3

Finding the original amount

Answer 3

To find the original amount of a reduced item, you would divide the number by the % to give you 1% and then multiply it by 100 to give you 100%

e.g. an item was reduced by 25% and is now £75, find the original price
75% = £75
1% = £1
100% = £100

Question 4

Finding the reduced amount

Answer 4

To find the reduced amount of a original item, you would divide the number by the 100% to give you 1% and then multiply it by the reduced % to give you the number you subtract from the original item.

e.g. an item worth £100 was reduced by 25%, find the reduced price
100% = £100
1% = £1
25% = £25

100% - 25% = 75% so £100 - £25 = £75

Question 5

Finding how much investments are worth after x number of years

Answer 5

To find out how much how much an investment is worth after x amount of years, you would take the investment and times it with your multiplier (see other flashcard lol) and then add a power that is the same as the number of years the investment has been there for

e.g. £100 is invested with an interest rate of 2.5%. How much it it worth after 3 year?
£100 x 1.025³ = £107.69

Question 6

Finding the value of the original investment before x amount of years

Answer 6

To find out how much how much the original investment was before x amount of years, you would take the new amount and divide it by your multiplier (see other flashcard lol) with the power that is the number of years the investment has been there for

e.g. An amount of money is invested with an interest rate of 2.5% for 3 years and is now worth £100. How much was invested?
X x 1.025³ = £100 so 100 ÷ 1.025³ = 92.8599…
X = £92.86