Appreciation, depreciation and compound interest can all be calculated using the multiplier method.
Calculate the interest earned on £420 when it is put in an account which pays an interest rate of 7% per year.
A sum of £1640 is invested in a bank. The rate of interest is 4.5% per annum. Calculate the simple interest gained in 9 months.
Sam invests £600 into a saving account which has an interest rate of 2% pa (per annum).
Calculate the compound interest he will receive if he leaves the money untouched for 4 years. (Round to the nearest penny).
Farida buys a car costing £7500.
It depreciates in value each year by 7%.
By how much had the car depreciated after 2 years? (Round to the nearest penny).
It is estimated that an iceberg weighs 84000 tonnes.
As the iceberg moves into warmer water, its weight decreases by 25% each day.
What will the iceberg weigh after 3 days in the warmer water? (Give your answer correct to 2 significant figures).
The cost of a toaster is £25 (excluding VAT).
If VAT is calculated at 20%, calculate the price of the toaster including VAT.
Julia invests £5200 into a savings account which has an interest rate of 3.4% pa. Calculate the amount she would have in her account after 3 years if she leaves the money untouched. Round to the nearest penny.
Sarah buys a car costing £12,500. It depreciates in value by 8% in the first year, 10% in the second year and 5% in the third year. What is the car worth after 3 years? (Round to the nearest penny).
A local council recycles 42,000 tonnes of waste a year. The council aims to increase the amount of waste recycled by 8% each year. How much waste does it expect to recycle in 3 years' time?
A vineyard produced 250 kilograms of grapes in 2005. It is estimated the vineyard will be able to increase production at a rate of 3% p.a. for the next 5 years. Calculate the weight of grapes that will be produced in 5 years time.