**Part 1**

1)

a) £504.99

b) £601.45

c) £716.34

2)

a) £3,712.89

b) £5,052.72

c) £3,795.51

3)

a) £1,332.58

b) £990.17

4)

a) £14,470

b) £2,708

c) £10,568

5) £10,169

6)

a) 3.499

b) 4.081

c) 3.118

d) 3.324

7) £514

8)

a) £13,372

b) £5,859

**Part 2**

1)

a) £5,120

b) £5,049.91

c) Bank account A

2) Company 2 – £3,506 better off

**Working**

**Part 1**

**Questions**

**Part 1**

1) I place £400 into a savings account that gives me 6% compound interest per year.

a) How much would I have in the savings account after 4 years?

b) How much would I have in the savings account after 7 years?

c) How much would I have in the savings account after 10 years?

2) I invest £3,400 and receive a compound interest of 4.5%.

a) How much would my investment be worth after 2 years?

b) How much would my investment be worth after 9 years?

c) How much would my investment be worth after 30 months?

3) I invested £2,800 in a company. The value of my investment fell by 13.8% per year.

a) What is the value of my investment after 5 years?

b) What is the value of my investment after 7 years?

4) I purchase a new car for £22,000. The value of the car depreciates (goes down in value) by 18.9% per year. Give your answer to the nearest pound.

a) What is the car worth after 2 years?

b) What is the car worth after 10 years?

c) What is the car worth after 42 months?

5) I place £7,000 into a bank account for 7 years. For the first 3 years, I receive a compound interest of 7.9%. For the next 4 years, I receive a compound interest of 3.7%. How much do I have in my saving account after the 7 years? Give your answer to the nearest pound.

6) The area of a Petri dish that is covered in bacteria is 3 square cm. The area increases by

8% per hour. Give your answers to 4 significant figures.

a) What area of the Petri dish will be covered in bacteria after 2 hours?

b) What area of the Petri dish will be covered in bacteria after 4 hours?

c) What area of the Petri dish will be covered in bacteria after 30 minutes?

d) What area of the Petri dish will be covered in bacteria after 80 minutes?

The final two questions in this part are slightly different to the ones above.

7) I purchased a share in a company 5 years ago. The value of the share that I purchased has appreciated by 12% each year. The share is now worth £906. How much was the share worth when I purchased it 5 years ago? Give you answer to the nearest pound.

8) I purchased a car 4 years ago. Every year, the car has/will depreciate in value by 9.8%. The car is now worth £7,984. Give your answer to the nearest pound.

a) How much was the car worth when I purchased it?

b) What will the car be worth in 3 years?

**Part 2**

1) I place £4,000 into a savings account. There are two different accounts that I can choose to place my money into:

- Account A: I receive a simple interest of 7% per year.
- Account B: I receive a compound interest of 6% per year.

a) How much money would I have after 4 years if I place my money into account A?

b) How much money would I have after years if I place my money into account B?

c) Which bank account should I choose?

2) I have £10,000 to invest. I can either invest in company 1 or company 2. If I invest in company 1, I receive a simple interest of 13.9%. If I invest in company 2, I receive a compound interest of 12.8%. I am going to invest my money for 7 years and I can only choose one of the investment options. Which investment option is the best and by how much? Give your answer to the nearest pound.