of 2.7% uses multiplier 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

Compound Interest and Depreciation Flashcards

Compound Interest and Depreciation Flashcards

Compound Interest and Depreciation Flashcards

Compound Interest and Depreciation Flashcards