New Century Mathematics (Second Edition)

S3 Question Bank
3A Chapter 3 Percentages (II)

Level 3

<code=10120043>
<bk=3A><ch=3><ex=3A><type=L3><mark=8><title=10120043><content>
Mr Chan deposits $20 000 in bank A at a simple interest rate of 3.6% p.a. Four months later, he
deposits $30 000 in bank B at a simple interest rate of 4.8% p.a. After further n months, a total
interest of $1 500 is received. Which bank pays more interest to Mr Chan? Explain your answer.
(8 marks)
Solution:
n4
Interest paid by bank A = $20 000  3.6%  1M
12
= $(60n + 240)
n
Interest paid by bank B = $30 000  4.8%  1M
12
= $120n
∴ (60n + 240) + 120n = 1 500 1M
180n = 1 260
n=7
Interest paid by bank A = $(60  7 + 240) 1M
= $660 1A
Interest paid by bank B = $120  7
= $840 1A
∵ $840 > $660 1M
∴ Bank B pays more interest to Mr Chan. 1A
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© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 3 P.56

<code=10120060>
<bk=3A><ch=3><ex=3B><type=L3><mark=10><title=10120060><content>
Bank X offers interest at 4% p.a. compounded half-yearly. Bank Y offers interest at 2% p.a.
compounded quarterly. Susan is going to deposit a sum of money in one of the banks. She claims
the interest received in bank X will be more than that in bank Y after 10 years. Do you agree?
Explain your answer.
(10 marks)
Solution:
Let $P be the sum of money deposited.
For bank X,
4%
interest rate for half a year = = 2% 1A
2
Taking half a year as a period,
number of periods in 10 years = 10  2 = 20 1A
Interest received after 10 years = $P[(1 + 2%)20 – 1] 1M+1A
= $(1.0220 – 1)P 1A
For bank Y,
2%
interest rate per quarter = = 0.5% 1A
4
Taking a quarter as a period,
number of periods in 10 years = 10  4 = 40 1A
Interest received after 10 years = $P[(1 + 0.5%)40 – 1]
= $(1.00540 – 1)P 1A
∵ 1.0220 – 1 = 0.486, cor. to 3 d.p.
1.00540 – 1 = 0.221, cor. to 3 d.p.
∴ (1.0220 – 1)P > (1.00540 – 1)P 1M
∴ The claim is agreed. 1A
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© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 3 P.57

<code=10120091>
<bk=3A><ch=3><ex=3C><type=L3><mark=11><title=10120091><content>
The monthly salary of Peter has been increasing at a constant rate of 8% per year. From 2014 to
2017, his monthly salary was increased by $3 246.4.
(a) Find Peter’s monthly salary in 2014.
(b) David’s monthly salary has been increasing at a steady rate per year. His monthly salaries
were $15 000 and $15 600 in 2014 and 2015 respectively. Peter claims that his monthly salary
will exceed David’s in 2020. Do you agree? Explain your answer.
(11 marks)
Solution:
(a) Let $P be Peter’s monthly salary in 2014.
Number of periods = 2017 – 2014 = 3 1A
3
P + 3 246.4 = P(1 + 8%) 1M+1A
3
3 246.4 = P(1.08 – 1)

P = 3 246.4
1.083  1
= 12 500
∴ Peter’s monthly salary was $12 500 in 2014. 1A

(b) Let y be the growth factor of David’s monthly salary.

15 000  y = 15 600 1M
y = 15 600
15 000

= 1.04 1A
Number of periods = 2020 – 2014 = 6 1A
David’s monthly salary in 2020
= $15 000  1.046
= $18 980, cor. to the nearest dollar 1A
Peter’s monthly salary in 2020
= $12 500  1.086
= $19 836, cor. to the nearest dollar 1A
∵ $19 836 > $18 980 1M
∴ The claim is agreed. 1A
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© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 3 P.58

<code=10120145>
<bk=3A><ch=3><ex=3D><type=L3><mark=10><title=10120145><content>
Stephen bought a new sports car in 2014 and its value has been depreciated at a constant rate per
year. The depreciation of the car was $600 000 in 2015. From 2014 to 2016, the value of the car
dropped by $1 080 000. Stephen claims that the value of the car in 2024 will be less than one-tenth
of the original value. Do you agree? Explain your answer.
(10 marks)
Solution:
Let $P be the original value of the car and r% be the depreciation rate.
From the question, we have
 P  r %  600 000.............................(1)
 1M+1A
 P  P  (1  r %)  1 080 000...........(2)
2

From (2),
P – P[1 – 2r% + (r%)2] = 1 080 000 1M
P[2r% – (r%)2] = 1 080 000
P  r%  (2 – r%) = 1 080 000 ……… (3) 1M
Substitute (1) into (3).
600 000  (2 – r%) = 1 080 000 1M
r
2 = 1.8
100
r = 20 1A
Number of periods = 2024 – 2014 = 10 1A
∴ Value of the car in 2024
= $P(1 – 20%)10
= $P(0.107…) 1A
1
>  $P 1M
10
∴ The claim is disagreed. 1A
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© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 3 P.59

<code=10120147>
<bk=3A><ch=3><ex=3E><type=L3><mark=7><title=10120147><content>
If the height of a cylinder increases by 60% and its curved surface area remains unchanged, find
the percentage change in the volume of the cylinder.
(7 marks)
Solution:
Let r, h and R be the original base radius, original height and new base radius of the cylinder
respectively.
New height of the cylinder = h(1 + 60%) 1M
= 1.6h
∵ Original curved surface area = new curved surface area
∴ 2rh = 2R(1.6h) 1M
R = 0.625r 1A
Original volume of the cylinder = r2h 1A
New volume of the cylinder = R2(1.6h)
= (0.625r)2  (1.6h)
= 0.625r2h 1A
0.625πr h  πr h
2 2
∴ Percentage change in the volume of the cylinder = 100% 1M
πr 2 h
0.375πr 2 h
=  100%
πr 2 h
= –37.5% 1A
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<code=10120164>
<bk=3A><ch=3><ex=3F><type=L3><mark=7><title=10120164><content>
The salaries tax rates are as shown in the following table:

Net chargeable income Rate

On the first $40 000 2%
On the next $40 000 7%
On the next $40 000 12%
Remainder 17%

It is known that Joyce’s net chargeable income is $18 000 more than Peter’s, and also Joyce’s
salaries tax payable is $1 760 more than Peter’s. Suppose Joyce’s net chargeable income is greater
than $80 000 but less than $98 000. Find Joyce’s net chargeable income.
(7 marks)
Solution:
Let $x be Joyce’s net chargeable income.
Then, Peter’s net chargeable income = $(x – 18 000) 1M
∴ Peter’s net chargeable income is greater than $62 000 (i.e. $80 000 – $18 000) and less than
$80 000 (i.e. $98 000 – $18 000). 1M
Peter’s salaries tax payable
= $[40 000  2% + (x – 18 000 – 40 000)  7%] 1M
= $(800 + 0.07x – 4 060)
= $(0.07x – 3 260)
Joyce’s salaries tax payable
= $[40 000  2% + 40 000  7% + (x – 2  40 000)  12%] 1M
= $(800 + 2 800 + 0.12x – 9 600)
= $(0.12x – 6 000)
∴ (0.12x – 6 000) – (0.07x – 3 260) = 1 760 1M+1A
0.05x – 2 740 = 1 760
0.05x = 4 500
x = 90 000
∴ Joyce’s net chargeable income is $90 000. 1A
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© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 3 P.61