Compound Interest & Depreciation Quiz
Studying this course? Keep your progress in one place.
Pick an answer for each. Quizzes never use energy.
5 questions, one answer each
Each answer is checked as you go, with why.
See all 5 questions
1. What is the multiplier for a 6% increase?
- A. 0.06
- B. 0.94
- C. 1.06
- D. 1.6
2. A machine worth £4000 depreciates by 10% each year. What is its value after 1 year?
- A. £400
- B. £3600
- C. £4400
- D. £3200
3. £1500 is invested at 5% compound interest per year for 2 years. What is the total amount after 2 years (to 2 d.p.)?
- A. £1650.00
- B. £1653.75
- C. £1657.50
- D. £1573.13
4. A car's value falls by 20% in year 1 and then by 15% in year 2, starting from £10000. What is its value after year 2?
- A. £6800
- B. £8000
- C. £6500
- D. £7000
5. After 3 years of compound interest at 4% per year, an investment is worth £2249.73. What was the original principal (to the nearest pound)?
- A. £2000
- B. £2100
- C. £1950
- D. £2249