# Compound appreciation and depreciation (Part 1)

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## Lesson details

### Key learning points

- In this lesson, we will learn about elements of compound appreciation and depreciation.

### Licence

This content is made available by Oak National Academy Limited and its partners and licensed under Oak’s terms & conditions (Collection 1), except where otherwise stated.

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### 5 Questions

Q1.

What would the value of £300 become if it grew by 5% and then another 5%?

£305

£310

£330

Q2.

If an antique appreciates by 6% per year for 11 years, the decimal multiplier would be 1.06^11.

False

Q3.

If I want to find the 'original' price of something that is currently in a sale and has 40%, I always need to find 100% of the amount to work out the original price.

False

Q4.

If I start with a number, increase it by 30% and then decrease it by 30%, I get back to the original number.

True

Q5.

The decimal multiplier to increase an amount by 6% for 5 years would be...

1.06 x 5

1.6 x 5

1.6^5

### 5 Questions

Q1.

Decreasing £100 by 5% for 8 years would give a final balance of...

£147.75 (to the nearest penny)

£60.00 (to the nearest penny)

£66.35 (to the nearest penny)

Q2.

If I deposited £500 in a bank account and left it there for 6 years at a rate of 4% compound interest, how much would I have at the end of the 6 years?

£524.00 (to the nearest penny)

£620.00 (to the nearest penny)

£632.66 (to the nearest penny)

Q3.

If an antique was originally bought for £55 and grew by 6.5% per year for 7 years, then the value at the end of 7 years would be £85.46 (to the nearest penny).

True

Q4.

If 53 increased by 23% for 'n' number of years, which of the following would provide a general formula to work out how much it had grown to?

0.23 x 53^n

1.23 x 53^n

53 x 0.23^n

Q5.

If an antique grew 6.5% a year for 7 years from the purchase price of £55, it would be worth £85.46 (to the nearest penny).

True