Simple and compound interest with challenge

Challenge question Ms Goddard won £3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much total will she earn in 10 years?

• £4915.59

• £3933.28

• £2979.81

• £4005.09

Mrs Woodhams borrowed £2000 from a bank. The bank charges a simple interest of 7% per annum. Calculate the interest that she has to pay at the end of 3 years.

• £420

• £450.09

• £2420

• £2450.09

How do you write 23% as a decrease multiplier?

• 0.23

• 1.23

• 0.87

• 0.77

How do you write 5% as an increase multiplierl?

• 0.05

• 0.5

• 1.5

• 1.05

What is 5.6% written as a decimal?

• 5.6

• 0.56

• 0.056

• 0.0056

What does depreciation mean?

• When something is gaining value

• When something is losing value

• When the value of something remains the same

• When the value of something goes to zero

Ms Meason leaves £1600 in the bank for four years. It earns compound interest of 4% each year. Calculate the total amount Ms M has in the bank at the end of the four years, giving your answer to the nearest penny.

Mrs Woodhams' car was bought for £18000. Its value depreciated by 15% each year for the first three years. What was its value at the end of the three years?

Ms Meason bought a piano for £2200. In each year the value of the piano increases by 11% of its value at the start of that year. What is the value of the piano after one year?

Ms Goddard invests £600 for 2 years at 10% per year compound interest. How much interest does she earn after the two years?

• £726

• £720

• £126

• £120