# Compound appreciation and depreciation (Part 2)

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## Lesson details

### Key learning points

- 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.

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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)

£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

### 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).

$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)

£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)

£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

True

Q5.

In order to increase an amount by 7.5% for 3 years, I would need to multiply the amount by 1.075^3

False