Calculate the simple interest earned on 800 pounds invested at 4% per year for 3 years. Give the interest only.
(1)
2
Work out 5% of 320 pounds. This represents the interest earned in one year. Give the interest only.
(1)
3
A deposit of 250 pounds earns 6% compound interest for 1 year. Work out the amount after 1 year.
(1)
4
If a multiplier is 1.08, state the annual percentage rate of increase.
(1)
5
If a multiplier is 0.93, state the annual percentage rate of decrease.
(1)
6
Work out the simple interest on 900 pounds at 2% per year for 4 years.
(1)
7
A bicycle costs 240 pounds and depreciates by 12% of its original value in the first year (simple depreciation). Work out its value after one year.
(1)
8
A savings account offers 3% compound interest. Write down the multiplier used to find the value after one year.
(1)
9
A sum of 350 pounds earns simple interest at 6% per year. Work out the total simple interest after 5 years.
(2)
10
Work out the value of 500 pounds invested for 2 years at 4% compound interest per year. Give your answer to 2 decimal places.
(2)
11
A television worth 450 pounds loses 15% of its value in one year (compound). Work out its value after one year.
(2)
12
A price is increased by 20% and then decreased by 20%. Work out the overall percentage change.
(2)
13
A loan of 600 pounds is charged simple interest for 4 years, with total interest of 96 pounds. Work out the annual simple interest rate.
(2)
14
An investment grows from 800 pounds to 864 pounds after 1 year of compound interest. Work out the annual interest rate.
(2)
15
A sum of 1500 pounds is invested at 3.5% simple interest per year. Work out the total amount (principal plus interest) after 4 years.
(3)
16
An investment of 700 pounds earns compound interest at 5% per year. Work out its value after 3 years, correct to 2 decimal places.
(3)
17
A car worth 9000 pounds loses 20% of its value in the first year and 15% of its remaining value in the second year (compound depreciation). Work out its value after 2 years.
(3)
18
Compare simple and compound interest on 2000 pounds at 4% per year for 2 years. Find the simple interest and the compound interest earned, then give the difference between them (compound minus simple).
(3)
19
Priya invests 1200 pounds at 6% compound interest per year. At the start of the second year she withdraws 150 pounds from the account. Find the total in the account at the end of the second year, giving your answer to 2 decimal places.
(4)
20
A motorbike depreciates by 12% of its value each year (compound). After 2 years its value is 3097.60 pounds. Work out the price of the motorbike when it was new.
(4)
Mark scheme · KS3.M-R10D Simple and Compound Interest: Fluency and Exam Drill
Question 1
B1 96 (pounds) cao
Answer: 96 pounds
Question 2
B1 16 (pounds) cao
Answer: 16 pounds
Question 3
B1 265 (pounds) cao
Answer: 265 pounds
Question 4
B1 8% cao
Answer: 8%
Question 5
B1 7% cao
Answer: 7%
Question 6
B1 72 (pounds) cao
Answer: 72 pounds
Question 7
B1 211.20 (pounds) cao
Answer: 211.20 pounds
Question 8
B1 1.03 cao
Answer: 1.03
Question 9
M1 method: 350*0.06*5
A1 105 (pounds) cao
Answer: 105 pounds
Question 10
M1 use multiplier 1.04 twice or 500*1.042
A1 540.80 (pounds) cao
Answer: 540.80 pounds
Question 11
M1 method: 450*0.85
A1 382.50 (pounds) cao
Answer: 382.50 pounds
Question 12
M1 use multipliers 1.20*0.80 = 0.96
A1 4% decrease cao
Answer: 4% decrease
Question 13
M1 method: rate = total interest/(principal*years) = 96/(600*4)
A1 4% per year cao
Answer: 4% per year
Question 14
M1 method: divide 864 by 800 to find the multiplier, 864/800 = 1.08
A1 8% cao
Answer: 8%
Question 15
M1 method: 1500*0.035*4
M1 find interest = 210
A1 1710 (pounds) cao
Answer: 1710 pounds
Question 16
M1 method: 700*1.053
M1 correct intermediate value, about 810.34
A1 810.34 (pounds) cao
Answer: 810.34 pounds
Question 17
M1 value after year 1: 9000*0.8 = 7200
M1 value after year 2: 7200*0.85
A1 6120 (pounds) cao
Answer: 6120 pounds
Question 18
M1 method for simple interest: 2000*0.04*2 = 160
M1 method for compound interest: 2000*1.042 - 2000 = 163.20 or equivalent