# Compound appreciation and depreciation (Part 2)

## Lesson details

### Key learning points

1. In this lesson, we will learn about more 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.

## Video

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## Worksheet

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## Starter quiz

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### 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)
Correct answer: £66.34 (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)
Correct answer: £632.65 (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

## Exit quiz

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### 5 Questions

Q1.
If an investment of \$500.00 increases by 13% per year for 6 years, the amount it would be at the end of the 6 years would be...
\$1,040.97 (to the nearest cent).
Correct answer: \$1,040.98 (to the nearest cent).
\$578.00 (to the nearest cent).
\$825.00 (to the nearest cent).
Q2.
£100.00 decreases by 5% in one year, followed by an increase of 5% in the next year, and then decreases again by 2% for 8 years. What would the final amount be?
£100.00 (to the nearest penny)
£84.00 (to the nearest penny)
Correct answer: £84.86 (to the nearest penny)
£84.87 (to the nearest penny)
Q3.
If a teddy bear depreciates from £3.00 by 18% per year for 5 years, what is the final value of the teddy bear?
£1.10 (to the nearest penny)
Correct answer: £1.11 (to the nearest penny)
£1.12 (to the nearest penny)
£2.10 (to the nearest penny)
Q4.
In order to decrease an amount by 19% for 2 years, I would need to multiply the amount by 0.19^2