GCSE HIGHER MATHS QUICK REVISION – COMPOUND INTEREST…

Sometimes percentage increases or decreases are repeated.

If interest is calculated on the interest it is compound interest otherwise it is simple interest.

The value of a new car is £16,000. The car

The population of a town is 52,000. The
population increases by 1.5% each year. Find the
population after 6 years.
loses 15% of its value at the start of each
year. Find the value of the car after 4 years.
A certain type of conifer hedge grows
at a rate of 15% each year for the
first 18 years. Mr. Jones buys a one
year old plant that is 50cm tall. How
long did it take to grow to 3m?

Neil invests £5,800 at a compound interest

The islands of the Maldives had a population of
390,000 at the start of 2009. Their population
growth rate is 5.6% per annum. Estimate the
size of the population at the start of 2015.
rate of 6% p.a. At the end of n complete
years, the investment has grown to
£6,907.89. Work out the value of n.

ASSESSMENT:
The value of a car is £25,000. The value
decreases by 22% each year. Write a formula for
the value of the car after n years.