rong>1.027.","points":null},{"id":"7957d233-1de2-435b-835f-9e5af57c1ca2","cardType":"cloze","front":"Compound interest and depreciation use repeated [ ], not repeated adding/subtracting.","back":"Compound interest and depreciation use repeated multiplication, not repeated adding/subtracting.","points":null},{"id":"f76394cc-63fe-4386-b2bc-53cbae5c51fb","cardType":"basic","front":"Why is a 6% increase then a 10% decrease not an overall 4% decrease?","back":"The 10% is taken from the new amount.","points":2},{"id":"392fe48b-3b1f-443b-a3c7-1389df5d0b3f","cardType":"cloze","front":"With compound interest, future interest is calculated on the [ ].","back":"With compound interest, future interest is calculated on the new, larger amount.","points":null},{"id":"e830bdc8-bcc5-454b-832b-f9ab79c6a391","cardType":"basic","front":"Which formula gives final amount for principal $P$, rate $r$%, over $n$ years of compound interest?","back":"$A=P\\left(1+\\frac{r}{100}\\right)^n$","points":1},{"id":"7f31a2bd-6779-461a-970e-7240377429cc","cardType":"basic","front":"If $V=9000\\times1.018^n$, what annual interest rate is used?","back":"1.8%","points":1},{"id":"364eedf9-0208-40ba-90bd-f2cebe9a0998","cardType":"cloze","front":"To find total interest, subtract the [ ] from the final amount.","back":"To find total interest, subtract the original amount from the final amount.","points":null},{"id":"31498b59-8a89-4eae-979f-521acd70af8d","cardType":"basic","front":"£2700 is invested at 3% compound interest for 4 years. What is the final amount to the nearest penny?","back":"£3038.87","points":2},{"id":"71e433c8-13a3-464f-814a-e6e8bfdec7a7","cardType":"cloze","front":"Fixed-rate depreciation formula: [ ].","back":"Fixed-rate depreciation formula: $A=P\\left(1-\\frac{r}{100}\\right)^n$.","points":null},{"id":"b658c89c-5463-44fc-b083-94815bcf072f","cardType":"basic","front":"What multiplier represents 14% depreciation each year?","back":"0.86","points":1},{"id":"a5d35507-29ee-4bac-81aa-7b974210bdf7","cardType":"basic","front":"If an item depreciates by 30%, why is the multiplier 0.70 rather than 0.30?","back":"The multiplier is the percentage left, not lost.","points":2},{"id":"2402a4c7-94f3-4889-817c-99f780a6151d","cardType":"basic","front":"A car worth £16 000 loses 25%, then 15% in each of the next 2 years. What is it worth after 3 years?","back":"£8670","points":3},{"id":"b5a2be2b-2052-4c29-ade9-2ecb8e6c4510","cardType":"basic","front":"£280 000 increases by 4%, then 1.5%, then decreases by 3%. What is its final value?","back":"£286 966.40","points":3},{"id":"ffc5ac79-4124-4f3b-919e-c579beb1563a","cardType":"basic","front":"When finding unknown years $n$ from start, rate and final amount, what do you try at Grade 4?","back":"Try powers of the multiplier until you match or pass the target.","points":2},{"id":"d089d26e-d4a3-414a-b99d-542ca17a744d","cardType":"basic","front":"£4800 grows at 2% compound interest to £5299.59. How many years?","back":"5 years","points":2},{"id":"740c4495-fe0e-4649-ad32-dc9bff2029ca","cardType":"basic","front":"With 15% annual depreciation, how many years until the value is below half?","back":"5 years","points":2},{"id":"1ec91733-2e35-4793-860b-407ae34ce07f","cardType":"cloze","front":"Simple interest is calculated only on the [ ], not the growing balance.","back":"Simple interest is calculated only on the original amount, not the growing balance.","points":n

Compound Interest and Depreciation Flashcards

Compound Interest and Depreciation Flashcards

Compound Interest and Depreciation Flashcards

Compound Interest and Depreciation Flashcards