Discia GCSE Maths › Ratio and Proportion › Compound Interest and Depreciation

Compound Interest and Depreciation worksheet

10 GCSE practice questions with answers, free to print. Every sheet is generated, so you can make a fresh one whenever you need it.

10 questions 34 marks Sheet 1
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  1. 4 marks

    Rosa invests £7200 in a savings account.

    The account pays 4% compound interest per year.

    She takes no money out of the account.

    (a)

    Calculate how much is in the account after 2 years.

    (b)

    Calculate the total interest earned over the 2 years.

  2. 3 marks

    Grace buys a new car for £21300.

    The value of the car depreciates by 30% each year.

    Find the value of the car after 2 years.

  3. 4 marks

    Rosa has £6100 to invest for 2 years.

    Account A pays 5% simple interest per year.

    Account B pays 5% compound interest per year.

    Work out how much more interest Account B pays than Account A over the 2 years.

  4. 3 marks

    Idris invests £5400 in a savings account.

    The account pays 4% compound interest per year.

    He takes no money out of the account.

    Calculate the number of years it takes for the amount in the account to first be more than £5900.

  5. 3 marks

    A farm bought a tractor.

    The value of the tractor depreciates by \(10\%\) each year.

    After \(3\) years the tractor is worth \(£3645\).

    (a)

    Work out the value of the tractor when it was new.

    (b)

    Work out the total amount of value the tractor has lost.

  6. 4 marks

    Priya invests £5200 in a savings account.

    The account pays 4% compound interest per year.

    She takes no money out of the account.

    (a)

    Calculate how much is in the account after 2 years.

    (b)

    Find the total interest earned over the 2 years.

  7. 3 marks

    Hafsa buys a new campervan for £10700.

    The value of the campervan depreciates by 15% each year.

    Work out the value of the campervan after 2 years.

  8. 4 marks

    Tomas has £1700 to invest for 2 years.

    Account A pays 10% simple interest per year.

    Account B pays 10% compound interest per year.

    Work out how much more interest Account B pays than Account A over the 2 years.

  9. 3 marks

    Zainab invests £1600 in a savings account.

    The account pays 6% compound interest per year.

    She takes no money out of the account.

    Work out the number of years it takes for the amount in the account to first be more than £2200.

  10. 3 marks

    A delivery firm bought a van.

    The value of the van depreciates by \(25\%\) each year.

    After \(2\) years the van is worth \(£12375\).

    (a)

    Find the value of the van when it was new.

    (b)

    Find the total amount of value the van has lost.

Answers

  1. (a) \(\text{£}7787.52\)
    (b) \(\text{£}587.52\)
  2. \(\text{£}10437.00\)
  3. \(\text{£}15.25\)
  4. \(3\ \text{years}\)
  5. (a) \(£5000\)
    (b) \(£1355\)
  6. (a) \(\text{£}5624.32\)
    (b) \(\text{£}424.32\)
  7. \(\text{£}7730.75\)
  8. \(\text{£}17.00\)
  9. \(6\ \text{years}\)
  10. (a) \(£22000\)
    (b) \(£9625\)

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