SIMPLE-COMPOUND INTEREST

1 (a) Kristian and Stephanie share some money in the ratio 3 : 2.

Kristian receives $72.

(i) Work out how much Stephanie receives.

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(ii) Kristian spends 45% of his $72 on a computer game.

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Calculate the price of the computer game.

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(iii) Kristian also buys a meal for $8.40 .
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Calculate the fraction of the $72 Kristian has left after buying the computer game and the meal.
Give your answer in its lowest terms.
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................................................... [2]
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(iv) Stephanie buys a book in a sale for $19.20 .

This sale price is after a reduction of 20%.
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Calculate the original price of the book.

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(b) Boris invests $550 at a rate of 2% per year simple interest.

Calculate the amount Boris has after 10 years.

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(c) Marlene invests $550 at a rate of 1.9% per year compound interest.

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Calculate the amount Marlene has after 10 years.

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(d) Hans invests $550 at a rate of x% per year compound interest.

At the end of 10 years he has a total amount of $638.30, correct to the nearest cent.
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Find the value of x.

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x = .................................................. [3]

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2 (a) Annie and Dermot share $600 in the ratio 11 : 9.

(i) Show that Annie receives $330.

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(ii) Find the amount that Dermot receives.

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Q1 (b) (i) Annie invests $330 at a rate of 1.5% per year compound interest.

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Calculate the amount that Annie has after 8 years.

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Give your answer correct to the nearest dollar.

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(ii) Find the amount of interest that Annie has, after the 8 years, as a percentage of the $330.
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.............................................. % [2]

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(c) Dermot has $70 to spend.
He spends $24.75 on a shirt.

(i) Find $24.75 as a fraction of $70.

Give your answer in its lowest terms.

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(ii) The $24.75 is the sale price after reducing the original price by 10%.

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Calculate the original price.

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(d) After one year, the value of Annie’s car had reduced by 20%.
At the end of the second year, the value of Annie’s car had reduced by a further 15% of its value at the
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end of the first year.
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(i) Calculate the overall percentage reduction after the two years.
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(ii) After three years the overall percentage reduction in the value of Annie’s car is 40.84%.
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Calculate the percentage reduction in the third year.

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.............................................. % [2]

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3 (a) The price of a house decreased from $82 500 to $77 500.

Calculate the percentage decrease.

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(b) Roland invests $12 000 in an account that pays compound interest at a rate of 2.2% per year.

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Calculate the value of his investment at the end of 6 years.

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Give your answer correct to the nearest dollar.
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4 (a) Rowena buys and sells clothes.

(i) She buys a jacket for $40 and sells it for $45.40 .

Calculate the percentage profit.

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(ii) She sells a dress for $42.60 after making a profit of 20% on the cost price.

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Calculate the cost price.

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(b) Sara invests $500 for 15 years at a rate of 2% per year simple interest.

Calculate the total interest Sara receives.

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(c) Tomas has two cars.

(i) The value, today, of one car is $21 000.

The value of this car decreases exponentially by 18% each year.

Calculate the value of this car after 5 years.

Give your answer correct to the nearest hundred dollars.

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(ii) so
The value, today, of the other car is $15 000.
The value of this car increases exponentially by x % each year.
After 12 years the value of the car will be $42 190.
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Calculate the value of x.
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x = ............................................... [3]

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5 Last year Mukthar earned $18 900 .
He did not pay tax on $5500 of his earnings.
He paid 24% tax on his remaining earnings.

(a) (i) Calculate how much tax Mukthar paid last year.

Answer(a)(i) $ ............................................... [2]

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(ii) Calculate how much Mukthar earned each month after tax had been paid.

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(b) This year Mukthar now earns $19 750.50 .

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Calculate the percentage increase from $18 900.
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(c) Mukthar has $1500 to invest in one of the following ways.

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● Account A paying simple interest at a rate of 4.1% per year

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● Account B paying compound interest at a rate of 3.3% per year

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Which account will be worth more after 3 years and by how much?
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Answer(c) Account ........ by $ ............................................... [5]

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