Simple & Compound Interest, Growth & Decay (Edexcel GCSE Maths: Foundation)

Exam Questions

1 hour28 questions
1
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2 marks

Eric invests £2800 in a savings account for 5 years.
The account pays simple interest at a rate of 1.5% per year.

Work out the total amount of interest Eric gets by the end of the 5 years.

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2
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3 marks

SaveBest Bank pays 2.4% compound interest on its basic savings account.

Alexa invests £600 in the savings account.

Calculate the value of Alexa's investment after 2 years.

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3
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3 marks

Charlene invests £7800 into a bond which pays 6.2% compound interest.

Work out the total interest that will have been paid on the investment by the end of 3 years.
Give your answer to the nearest pound.

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4
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3 marks

Ethan invests $6400 at a rate of 2.6% per year simple interest.

Calculate the total value of his investment at the end of 3 years.

$ ................................................

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5
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3 marks

Jamie invests $12000 at a rate of 5% per year compound interest.

Calculate the value of his investment at the end of 3 years.

$ .............................................. 

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6
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3 marks

Jan invests $800 at a rate of 3% per year simple interest.

Calculate the value of her investment at the end of 4 years. 

$ ....................................

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7
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3 marks

Sam invests $4500 into a savings account which pays 3.5% compound interest each year.

Find the total amount in the account after 6 years.

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8
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3 marks

Cody is aiming to save $2000 in total.

They invest $1750 in a savings account which pays 6.5% interest each year.

How many years will it take for the balance in the account to reach at least $2000?

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1
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3 marks

Lukas invests £350 in a savings account.
At the end of 4 years he has received a total of £53.20 simple interest.

Work out the annual rate of simple interest.

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2
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3 marks

A city has a population of 215 000 people.

The population of the city increases by 1.5% each year.

What is the population of the city after 3 years?

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3
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3 marks

The value of a new TV is £850.
The value of the TV depreciates by 12% each year.

Work out the value of the TV after 2 years.

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4
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2 marks

Trina invests $16000 at a rate of 5% per year compound interest.

Work out the value of her investment at the end of 4 years.

$.........................

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5
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3 marks

Gino invests $6000 for 5 years at a rate of 1.2% per year compound interest.

Calculate the value of his investment at the end of the 5 years.
Give your answer correct to the nearest dollar.

$ .................................................

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6
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2 marks

Lucia invests $5000 at a rate of 4.5% per year compound interest.

Calculate the value of her investment at the end of 7 years.

$ .................................................. 

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7
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3 marks

Ella invests $4000 for 3 years at a rate of 1.2% per year compound interest.

Calculate the value of her investment at the end of the 3 years.

$...................................................

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8
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3 marks

Javier invests $750 for 3 years at a rate of 1.8% per year compound interest.

Calculate the value of his investment at the end of the 3 years.

$ ................................................... 

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9
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3 marks

Hawa invests $750 at a rate of 3.5% per year compound interest.

Calculate the value of his investment at the end of 3 years.

$ .............................. 

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1
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2 marks

Sarah invests £16 000 in a savings account.
She gets 2.5% compound interest per annum.

After n years Sarah has £17 230.25

Work out n.

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2
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3 marks

Two samples of bacteria are prepared in a laboratory.

Sample A contains 100 bacteria.
The number of bacteria in the sample increase by 60% each hour.

Sample B contains 3000 bacteria.
The number of bacteria in the sample decreases at a rate of 19% per hour.

After 5 hours, which sample contains more bacteria.
You must show all your working.

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3
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3 marks

Heather wants to invest £35 000 in a bank for 4 years.

Bank A  offers 3% compound interest.

Bank B offers 5.1% interest for the first year and 2.5% compound interest for the remaining 3 years.

Which bank will give Heather the most interest at the end of the 4 years.
You must show all your working.

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4
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3 marks

$12000 is invested at a rate of n% per year simple interest.
At the end of 3 years the value of the investment is $12900.

Find the value of n.

n = ................................. 

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5
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5 marks

Sonia wants to invest $5000 for 6 years.

Bank A pays compound interest at a rate of 3.5% per year.
Bank B increases the $5000 by 22% at the end of 6 years.

Which bank will give Sonia the most money at the end of 6 years and by how much?
You must show all your working.

qp18-0580-13-paper-1-may-2020-cie-igcse-maths

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6
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3 marks

Riya invests $30000 at a rate of 2.5% per year compound interest.

Calculate the value of her investment at the end of 7 years.
Give your answer correct to the nearest dollar.

$ ................................................. 

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7a
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7 marks

Six years ago a farmer invested $3750 at a rate of 4% per year compound interest.

i)
Calculate the total value of his investment after the 6 years.
Give your answer correct to the nearest dollar.
$ ............................................... [3]
ii)
The farmer wants to spend his investment on buying goats.
Goats cost $126 each.

Work out the maximum number of goats he can buy and the amount of money left over.
Number of goats ..............................................
Amount of money left over $ ............................................... [4]
7b
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1 mark

The farmer grows carrots.
In 2018 the selling price for carrots was $96 per tonne.
In 2019 this selling price increased by 18%.

Work out the increase in the selling price from 2018 to 2019.

$ ..............................................

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8
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2 marks

Paula invests $600 at a rate ofspace r% per year simple interest.
At the end of 10 years, the total interest earned is $90.

Find the value of r.

r =........................................

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9
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3 marks

$8400 is invested for 2 years at a rate of 3.5% per year compound interest.
Work out the total amount of interest earned by the end of the 2 years.

$.................................................... 

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10
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3 marks

Harry invests $800 for 2 years at a rate of 3% per year compound interest.

Calculate the amount of interest he receives at the end of the 2 years.

$ ...........................

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11
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3 marks

Tomas borrows $5000 for 3 years at a rate of 2.5% per year compound interest.
He pays back the whole amount, with interest, at the end of 3 years.

Calculate the total amount of money he pays back at the end of the 3 years.

$ .............................. 

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