GCSE · Percentages & growth

Compound growth and decayExam-style questions

Why repeated percentage change is a power of the multiplier, how compound interest differs from simple interest, and how to build growth and decay models.

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19 questions · GCSE (Higher) level · mark scheme and worked solution on each · no sign-up to try

DifficultyAll Level 1 Level 2 Level 3 Level 4 Level 5

1
A car is bought for £ $15\,000$

Its value depreciates by $12\%$ each year.

Work out the value of the car after $3$ years. (3 marks)
Level 3 · 3 marksTry it
2
£ $3000$ is invested at $2.5\%$ per year compound interest.

After how many complete years will the investment first be worth more than £ $3400$ ? You must show your working. [3]
Level 3 · 3 marksTry it
3
Hana has £6000 to invest for $3$ years.

She can choose one of two savings accounts.

Account A pays $3.5\%$ per year compound interest.

Account B pays $3.6\%$ per year simple interest.

Which account will give Hana more interest over the $3$ years?

You must show how you get your answer.

(4 marks)
Level 3 · 4 marksTry it
4
£4000 is invested in an account paying 2.5% compound interest per year. Work out the value of the investment after 3 years. Give your answer to the nearest penny.
Level 3 · 3 marksTry it
5
£ $3000$ is invested in an account paying $3\%$ compound interest per year.

Work out the value of the investment after $2$ years.
Level 3 · 2 marksTry it

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