SIMPLE-COMPOUND-INTEREST

1
Anna, Bobby and Carl receive a sum of money.
They share it in the ratio 12 : 7 : 8 .
Anna receives $504.

(a) Calculate the total amount.

m
Answer(a) $ [3]

co
(b) (i) Anna uses 7% of her $504 to pay a bill.
Calculate how much she has left.

e s.
rc
Answer(b)(i) $ [3]

ou
(ii) She buys a coat in a sale for $64.68.
This was 23% less than the original price.
Calculate the original price of the coat.
s
re
am

Answer(b)(ii) $ [3]

(c) Bobby uses $250 of his share to open a bank account.

x

This account pays compound interest at a rate of 1.6% per year.

te

Calculate the amount in the bank account after 3 years.

Give your answer correct to 2 decimal places.
ar
m
.s
w

Answer(c) $ [3]
w

(d) Carl buys a computer for $288 and sells it for $324.
w

Calculate his percentage profit.

Answer(d) % [3]

www.smartexamresources.com 1
MARKING SCHEME:

m
co
e s.
rc
s ou
re
xam
te
ar
m
.s
w
w
w

www.smartexamresources.com 2
2 (a) In a sale, Jen buys a laptop for $351.55.
This price is 21% less than the price before the sale.

Calculate the price before the sale.

m
co
s.
Answer(a) $ [3]

e
(b) Alex invests $4000 at a rate of 8% per year simple interest for 2 years.

rc
Bob invests $4000 at a rate of 7.5% per year compound interest for 2 years.

ou
Who receives more interest and by how much?
s
re
x am
te
ar
m
.s
w
w
w

Answer(b) receives $ more interest. [6]

www.smartexamresources.com 3
MARKING SCHEME:

m
co
e s.
rc
s ou
re
xam
te
ar
m
.s
w
w
w

www.smartexamresources.com 4
3 (a) Ali and Ben receive a sum of money.
They share it in the ratio 5 : 1.
Ali receives $2345.

Calculate the total amount.

m
co
Answer(a) $ ............................................... [2]

(b) Ali uses 11% of his $2345 to buy a television.

s.
Calculate the cost of the television.

e
rc
s ou
Answer(b) $ ............................................... [2]
re
(c) A different television costs $330.
am

(i) Ben buys one in a sale when this cost is reduced by 15%.

How much does Ben pay?

x
te
ar
m

Answer(c)(i) $ ............................................... [2]

.s

(ii) $330 is 12% less than the cost last year.

w

Calculate the cost last year.

w
w

Answer(c)(ii) $ ............................................... [3]

www.smartexamresources.com 5
(d) Ali invests $1500 of his share in a bank account.
The account pays compound interest at a rate of 2.3% per year.

Calculate the total amount in the account at the end of 3 years.

m
co
Answer(d) $ ............................................... [3]

s.
(e) Ali also buys a computer for $325.
He later sells this computer for $250.

e
Calculate Ali’s percentage loss.

rc
s ou
re
Answer(e) ........................................... % [3]
x am
te
ar
m
.s
w
w
w

www.smartexamresources.com 6
MARKING SCHEME:

m
co
e s.
rc
s ou
re
xam
te
ar
m
.s
w
w
w

www.smartexamresources.com 7
4 Jane and Kate share $240 in the ratio 5 : 7 .

(a) Show that Kate receives $140.

Answer(a)

[2]

m
(b) Jane and Kate each spend $20.

co
Find the new ratio Jane’s remaining money : Kate’s remaining money.
Give your answer in its simplest form.

e s.
Answer(b) ....................... : ....................... [2]

rc
(c) Kate invests $120 for 5 years at 4% per year simple interest.

ou
Calculate the total amount Kate has after 5 years.
s
re
am

Answer(c) $ ................................................ [3]

(d) Jane invests $80 for 3 years at 4% per year compound interest.
x
te

Calculate the total amount Jane has after 3 years.

Give your answer correct to the nearest cent.
ar
m
.s

Answer(d) $ ................................................ [3]

w

(e) An investment of $200 for 2 years at 4% per year compound interest is the same as an investment of
$200 for 2 years at r % per year simple interest.
w

Find the value of r.

w

Answer(e) r = ................................................ [3]

www.smartexamresources.com 8
MARKING SCHEME:

m
co
e s.
rc
s ou
re
xam
te
ar
m
.s
w
w
w

www.smartexamresources.com 9
5 (a) (i) Eduardo invests $640 at a rate of 2% per year compound interest.

Show that, at the end of 6 years, Eduardo has $721, correct to the nearest dollar.

Answer(a)(i)

m
co
[2]

(ii) Manuela also invests $640.

s.
At the end of 4 years, Manuela has $721.

e
Find the yearly compound interest rate.

u rc
so
re
m
xa

Answer(a)(ii) ............................................. % [4]

te

(b) Carlos buys a motor scooter for $1200.

ar

Each year the value of the scooter decreases by 10% of its value at the beginning of that year.

Find the value of the scooter after 3 years.

m
.s
w
w
w

Answer(b) $ ................................................. [2]

www.smartexamresources.com 10
MARKING SCHEME:

m
co
e s.
u rc
so
re
m
xa
te
ar
m
.s
w
w
w

www.smartexamresources.com 11