"a342f6e6-c401-4ce2-b93a-4ade4a7b4d65","cardType":"cloze","front":"In the compound interest formula $A = P(1 + \\frac{r}{100})^n$, the power $n$ represents the [ ].","back":"In the compound interest formula $A = P(1 + \\frac{r}{100})^n$, the power $n$ represents the number of years.","points":null},{"id":"e4149721-449a-4dea-8d9a-c05d6c0ebb2d","cardType":"basic","front":"What does the term per annum mean?","back":"Each year","points":1},{"id":"662a0e02-d875-45e5-b0bd-5afabef8c02a","cardType":"basic","front":"Explain the core mechanism of compound interest.","back":"Interest is added to the total, then the next year's interest is calculated on that new, larger amount.","points":2},{"id":"a3606b56-8c9e-4f75-91f8-6982edc6000f","cardType":"basic","front":"Why is it incorrect to simply add the annual interest rates together for a multi-year investment?","back":"Each percentage must be calculated from the new value, not the original value.","points":2},{"id":"8b2e568c-0955-4cfc-8402-44ba78b8971a","cardType":"basic","front":"State the calculation to find the final amount for £3600 invested for 4 years at 2.5% compound interest.","back":"$$3600 \\times 1.025^4$","points":2},{"id":"5bb7b230-c15a-4a92-8780-e9fe8d7637e4","cardType":"cloze","front":"To find the total interest earned, you subtract the [ ] from the final amount.","back":"To find the total interest earned, you subtract the starting amount from the final amount.","points":null},{"id":"c689f7ad-1777-46dd-8cf7-211af86269b6","cardType":"cloze","front":"To find the total interest earned, you subtract the starting amount from the [ ].","back":"To find the total interest earned, you subtract the starting amount from the final amount.","points":null},{"id":"1203bf0a-5b40-4352-832d-683f11c8333e","cardType":"basic","front":"The value of an investment is $V = 6000 \\times 1.018^n$. What is the annual interest rate?","back":"1.8%","points":1},{"id":"55d56f88-fca3-41b1-a2fa-623a618e09ab","cardType":"basic","front":"Define depreciation.","back":"When a value goes down over time.","points":1},{"id":"9b32a97d-a95d-44c2-8870-b793e8102c64","cardType":"basic","front":"What multiplier is used for a 20% depreciation?","back":"0.80","points":1},{"id":"e8b99df8-9b98-4b79-9289-37fae703735d","cardType":"cloze","front":"The formula for the final amount after depreciation is $A = P(1 \\text{[...]} \\frac{r}{100})^n$.","back":"The formula for the final amount after depreciation is $A = P(1 \\boxed{-} \\frac{r}{100})^n$.","points":null},{"id":"13f17d93-d212-4fca-847b-535265858963","cardType":"basic","front":"An item loses 25% value in Year 1, then 10% in Year 2. What are the two multipliers used?","back":"

Year 1: 0.75
Year 2: 0.90

","points":2},{"id":"7935f4a2-34a4-4b66-b8d0-0da8d2f9f2cb","cardType":"basic","front":"A value rises by 2% then falls by 4%. State the calculation to find the final value of original amount $X$.","back":"$$X \\times 1.02 \\times 0.96$","points":2},{"id":"b2a59c77-f8e0-4fc7-b6a5-af57f18997fe","cardType":"basic","front":"What is the standard method for finding the number of years $n$ if you are given the final amount?","back":"Try whole-number powers on a calculator until the value matches or passes the target.","points":1},{"id":"015f27ec-d41e-4ab5-9a2e-4b8f6c5563d9","cardType":"basic","front":"When calculating how many years it takes for an item to be worth less than half its original value, what original value is simplest to use?","back":

Compound Interest and Depreciation Flashcards

Compound Interest and Depreciation Flashcards

Compound Interest and Depreciation Flashcards

Compound Interest and Depreciation Flashcards