Compound Interest and Depreciation
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Mateo invests £4000 for n n\,n years in a savings account.

To find the value, VVV, of his investment after n n\,n years he uses the formula:

V=4000×(1.035)n V = 4000 \times (1.035)^n V=4000×(1.035)n
a.

Write down the annual rate of interest Mateo earns.

[1]
b.

Find the total amount of interest Mateo earns in two years.

[2]

Compound Interest and Depreciation Questions

Practise OCR GCSE Maths Compound Interest and Depreciation with exam-style questions for Foundation and Higher tier. 44 questions, matched to the OCR GCSE Maths (J560) specification and written in the written papers style. Every question includes a full worked solution and mark scheme, so you can see where marks are awarded rather than just whether you got the answer right.

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Compound Interest and Depreciation Questions

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