Test 1. Compound interest-type problems

 1. £5000 is invested at 10% per annum (year) compound interest. How much money will there be after 2 years?

 а)  £6050;      b)  £6070;     

 c)  £6120;      d)  £6055.

 2. Ben invests £6000 in bank at 5% per annum compound interest. How much money will he have in the bank after 2 years?

 а)  £6625;      b)  £6615;     

 c)  £6515;      d)  £6660.

 3. A bank pays 6% per annum compound interest. How much will the following people have in the bank after the number of years stated?

Kim: £9000 after 2 years.

 а)  £10,714.16;     

 b)  £10,714.10;     

 c)  £10,718.14;     

 d)  £10,714.14.

 4. A bank pays 6% per annum compound interest. How much will the following people have in the bank after the number of years stated?

Freddie: £4000 after 3 years.

 а) £4766.66 ;     

 b)  £4764.60;     

 c)  £4764.06;     

 d)  £4764.08.

 5. A bank pays 6% per annum compound interest. How much will the following people have in the bank after the number of years stated?

Les: £2500 after 2 years.

 а)  £2819;      b)  £2809;     

 c)  £2812;      d)  £2803.

 6. A bank pays 6% per annum compound interest. How much will the following people have in the bank after the number of years stated?

Olive: £600 after 2 years.

 а)  £674.16;     

 b)  £676.18;     

 c)  £672.12;     

 d)  £664.96.

 7. A stereo loses 30% of its value every year. Tim bought it for £800. How much would it be worth after 2 years?

 а)  £398;      b)  £382;     

 c)  £392;      d)  £390.

 8. A stereo loses 30% of its value every year. Tim bought it for £800. How much would it be worth after 3 years?

 а)  £274.40;      b)  £274.60;     

 c)  £278.45;      d)  £276.60.

 9. The number of fish in a lake is decreasing by 5% each year. There are 10000 fish in the lake at the start of 2005. How many fish are there in the lake at the end of 2005?

 а)  9520;      b)  9500;     

 c)  9480;      d)  9550.

10. The number of fish in a lake is decreasing by 5% each year. There are 10000 fish in the lake at the start of 2005. How many fish are there in the lake at the end of 2006?

 а)  9015;      b)  9020;     

 c)  9025;      d)  9055.

11. Inflation is how much more expensive things in the shop get each year. Inflation is about 3%. If a pair of shoes costs £50, how much will the pair of shoes cost after 2 years?

 а)  £52.05;      b)  £53.20;     

 c)  £53.15;      d)  £53.05.

12. Inflation is how much more expensive things in the shop get each year. Inflation is about 3%. If a pair of shoes costs £50, how much will the pair of shoes cost after 3 years?

 а)  £54.44;      b)  £54.64;     

 c)  £54.68;      d)  £54.60.