Level 2: New Century Mathematics (Second Edition) S3 Question Bank 3A Chapter 3 Percentages (II)

New Century Mathematics (Second Edition)
S3 Question Bank
3A Chapter 3 Percentages (II)
Level 2
<code=10118160>
<bk=3A><ch=3><ex=3A><type=L2><mark=5><title=10118160><content>
Jack wants to borrow $40 000 from a bank. Bank A charges simple interest at an interest rate of
5% p.a. for 3 years. Bank B charges simple interest at an interest rate of 4% p.a. for 4 years. Jack
claims that he can pay less interest if he borrows the money from bank B. Do you agree? Explain
your answer.
(5 marks)
Solution:
Simple interest charged by bank A
= $40 000  5%  3 1M
= $6 000 1A
Simple interest charged by bank B
= $40 000  4%  4
= $6 400 1A
∵ $6 400 > $6 000 1M
∴ The claim is disagreed. 1A
<end>
<code=10118291>
A sum of money is deposited in a bank. If the simple interest received after 12 years will be equal
to 45% of the principal, find the interest rate per annum.
(4 marks)
Solution:
Let $P be the principal and R% be the interest rate per annum. 1M
P  R %  12 = P  45%
1M+1A
R
 12 = 0.45
100
R = 3.75
∴ The interest rate is 3.75% p.a. 1A
<end>
© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.27

<code=10118317>
Brenda deposits $220 000 in a bank at a simple interest rate of R% p.a. The amount received after
4 months is $223 410.
(a) Find the value of R.
(b) Find the time required to get simple interest of $5 115.
(6 marks)
Solution:
 4 
(a) 223 410 = 220 000  1  R %   1M+1A
 12 
223 410 R 4
220 000
= 1 
100 12
R
1.015 5 = 1 +
300
R = 4.65 1A
(b) Let T years be the time required.

220 000  4.65%  T = 5 115 1M+1A
10 230T = 5 115
T = 0.5
∴ The time required is 0.5 year (or 6 months). 1A
<end>
<code=10118367>
A sum of money is deposited in a bank at a simple interest rate of 5% p.a. How long will it take to
receive an amount which equals 1.5 times the principal?
(4 marks)
Solution:
Let $P be the principal and T years be the time required. 1M
P(1 + 5%  T) = 1.5P 1M+1A
1 + 0.05T = 1.5
0.05T = 0.5
T = 10
∴ The time required is 10 years. 1A
<end>

<code=10118393>
Ivy has $18 000. She deposits $n out of $18 000 in bank A at a simple interest rate of 4% p.a.
Meanwhile, she deposits the rest of the money in bank B at a simple interest rate of 5% p.a. If the
interests received from the two banks after 20 years will be the same, find the value of n.
(3 marks)
Solution:
n  4%  20 = (18 000  n)  5%  20
1M+1A
0.8n = 18 000  n
1.8n = 18 000
n = 10 000 1A
<end>
<code=10118430>
Miss Lee deposits $2 500 000 in a bank at a simple interest rate of 3% p.a. If the amount received
after D days is $2 545 000, find the value of D.
(Assume 1 year = 365 days.)
(3 marks)
Solution:
 D 
2 545 000 = 2 500 000  1  3%   1M+1A
 365 
2 545 000 3D
2 500 000
= 1 + 36 500
3D
1.018 = 1 + 36 500
3D
0.018 = 36 500
D = 219 1A
<end>

<code=10118469>
Jason borrows $170 000 from bank A at a simple interest rate of 2% p.a. At the same time, he
invests $150 000 in bank B at a simple interest rate of 2.8% p.a.
(a) Find the interest paid to bank A by Jason after 2 years.
(b) On the whole, will Jason make a profit after 2 years? Explain your answer.
(5 marks)
Solution:
(a) Interest paid by Jason after 2 years = $ 170 000  2%  2 1M
= $6 800 1A
(b) Interest received by Jason after 2 years = $ 150 000  2.8%  2

= $8 400 1A
∵ $8 400 > $6 800 1M
∴ Jason will make a profit after 2 years. 1A
<end>
<code=10118474>
A bank offers a simple interest rate of 3.2% p.a. Louis deposits $30 000 in the bank. If the
deposit time reduces from 7 years to m years, he will get $3 840 less interest.
(a) Find the value of m.
(b) Louis plans to withdraw 10% of the amount received from the bank after m years. Louis
claims that the interest received over m years is more than the sum of money withdrawn from
the bank. Do you agree? Explain your answer.
(9 marks)
Solution:
(a) 30 000  3.2%  (7 – m) = 3 840 1M+1M+1A
960  (7 – m) = 3 840
7–m=4
m=3 1A
(b) Interest received over the 3 years = $30 000  3.2%  3

= $2 880 1A
Sum of money withdrawn after 3 years = $(30 000 + 2 880)  10% 1M
= $3 288 1A
∵ $2 880 < $3 288 1M
<end>

<code=10118520>
At the beginning of 2014, Karen deposited $12 000 in a bank at a simple interest rate of
4.2% p.a. At the beginning of 2017, she deposited $15 000 more in the bank at the same simple
interest rate.
(a) Find the total amount that she will receive at the beginning of 2022.
(b) At the beginning of which year will she receive the total interest of $10 584?
(7 marks)
Solution:
(a) Interest received from the beginning of 2014 to the beginning of 2017
= $12 000  4.2%  (2017 – 2014) 1M
= $1 512
Interest received from the beginning of 2017 to the beginning of 2022
= $(12 000 + 15 000)  4.2%  (2022 – 2017) 1M
= $5 670
Total amount received at the beginning of 2022
= $(12 000 + 15 000 + 1 512 + 5 670) 1M
= $34 182 1A
(b) Suppose she will receive the total interest of $10 584 n years after the beginning of 2017.
1 512 + (12 000 + 15 000)  4.2%  n = 10 584 1M+1A
1 512 + 1 134n = 10 584
n=8
∴ She will receive the total interest of $10 584 at the beginning of 2025 (i.e. 2017 + 8). 1A
<end>
<code=10118538>
Steven bought a flat for $2 000 000. He borrowed a sum of money from a bank at a simple interest
7
rate of 5% p.a. for T years. The sum of money borrowed is equal to of the price of the flat.
8
(a) Find the sum of money borrowed by Steven.
(b) If Steven saves $13 125 each month during these T years to repay the amount, find the value
of T.
(6 marks)
Solution:
(a) Sum of money borrowed by Steven
7
= $2 000 000  1M
8
= $1 750 000 1A

(b) 13 125  12  T = 1 750 000(1 + 5%  T) 1M+1M+1A
157 500T
1 750 000
= 1 + 0.05T
0.09T = 1 + 0.05T
0.04T = 1
T = 25 1A
<end>
<code=10118568>
<bk=3A><ch=3><ex=3B><type=L2><mark=6><title=10118568><content>
Kenneth borrows a sum of money from a bank at an interest rate of 9% p.a. compounded yearly. If
he repays the loan after 6 years, he needs to pay an amount of $154 000.
(a) How much does Kenneth borrow?
(b) If the loan is repaid after 3 years, find the interest he should pay.
(Give the answers correct to the nearest $100.)
(6 marks)
Solution:
(a) Let $P be the sum of money he borrows.
154 000 = P(1 + 9%)6 1M+1A
154 000
P=
1.096
= 91 800, correct to the nearest 100 91 825
∴ Kenneth borrows $91 800. 1A
(b) Interest = $91 825  [(1 + 9%)3 – 1] 1M+1M

= $27 100, cor. to the nearest $100 1A
<end>
<code=10118571>
David deposits a sum of money in a bank which offers interest at 7.3% p.a. compounded daily. If
he receives interest of $12 000 after 3 years, find the sum of money deposited, correct to the
nearest dollar.
(Assume there are 365 days in a year.)
(5 marks)
Solution:
Let $P be the sum of money deposited.
7.3%
Interest rate per day = = 0.02% 1A
365

Taking a day as a period,
number of periods in 3 years = 3  365 = 1 095 1A
12 000 = P[(1 + 0.02%)1 095 – 1] 1M+1A
12 000
P = 1.000 21 095  1
= 49 019, cor. to the nearest integer

∴ The sum of money deposited is $49 019. 1A
<end>
<code=10118629>
Mrs Tong plans to invest $90 000 for 5 years. She may either deposit the money in a bank which
offers interest at 7.5% p.a. compounded monthly or buy a government bond which offers simple
interest at 10% p.a. Which investment can provide her with a greater amount? Explain your
answer.
(8 marks)
Solution:
For depositing the money in the bank,
7.5%
interest rate per month = = 0.625% 1A
12
Taking a month as a period,
number of periods in 5 years = 5  12 = 60 1A
amount = $90 000  (1 + 0.625%)60 1M
= $130 796, cor. to the nearest dollar 1A
For buying the government bond,
amount = $90 000  (1 + 10%  5) 1M
= $135 000 1A
> $130 796 1M
∴ Buying the government bond can provide her with a greater amount. 1A
<end>
<code=10118632>
Alex deposits $42 000 in a bank at an interest rate of 5.2% p.a. for 4 years. The manager claims
that the interest compounded quarterly will be twice the interest compounded half-yearly. Do you
agree? Explain your answer.
(7 marks)

Solution:
Taking a quarter as a period,
5.2%
interest rate per period = = 1.3% 1A
4
interest received = $42 000  [(1 + 1.3%)16 – 1] 1M
= $42 000  (1.01316 – 1)
Taking half a year as a period,
5.2%
interest rate per period = = 2.6% 1A
2
interest received = $42 000  [(1 + 2.6%)8 – 1]
= $42 000  (1.0268 – 1)
$42 000  (1.01316  1)
∵ = 1.007 1…  2 1M
$42 000  (1.026 8  1)
<end>
<code=10118678>
Cindy borrows a sum of money from a bank at an interest rate of 9% p.a. compounded monthly for
3 years. If she has to pay interest of $8 000, how much is the amount repaid?
(Give the answer correct to the nearest dollar.)
(7 marks)
Solution:
Let $P be the sum of money borrowed.
9%
Interest rate per month = = 0.75% 1A
12
Taking a month as a period,
8 000 = P[(1 + 0.75%)36 – 1] 1M+1A
8 000
P = 1.007 536  1
= 25 919.71, cor. to 2 d.p. 1A

∴ Amount repaid = $(25 919.71 + 8 000) 1M
<end>

<code=10118702>
Ricky deposits $225 000 in bank A and he will receive simple interest of $9 000 after 2 years.
(a) Find the interest rate per annum offered by bank A.
(b) Afterwards, the interest obtained in bank A will be deposited in bank B at the same annual
interest rate as bank A compounded quarterly. Find the interest he will receive in bank B after
30 more months.
(7 marks)
Solution:
(a) Let r% be the interest rate per annum.
9 000 = 225 000  r%  2 1M+1A
r
9 000 = 225 000  2
100
9 000 = 4 500r
r=2
∴ The interest rate per annum offered by bank A is 2%. 1A
(b) For bank B,

2%
interest rate per quarter = = 0.5% 1A
4
taking a quarter as a period,
30
number of periods in 30 months = = 10 1A
3
interest = $9 000  [(1 + 0.5%)10 – 1] 1M
= $460, cor. to the nearest dollar 1A
<end>
<code=10118737>
Calvin plans to take out a loan from a bank and he will repay the amount 4 years later. The loan
schemes offered by bank A and bank B are as follows.
Bank A: interest rate of 7% p.a. compounded yearly
Bank B: interest rate of 6% p.a. compounded monthly with a service fee of $500 per year
It is known that if Calvin takes out the loan from bank A, he will need to repay an amount of
$57 000.
(a) What is the loan amount according to Calvin’s plan?
(b) From which bank should he take out the loan in order to repay a smaller amount? Explain
your answer.

(10 marks)
Solution:
(a) Let $P be the loan amount.
57 000 = P(1 + 7%)4 1M+1A
57 000
P=
1.07 4
= 43 485, cor. to the nearest integer 43 485.03
∴ The loan amount according to Calvin’s plan is $43 485. 1A
(b) For bank B,

6%
interest rate per month = = 0.5% 1A
12
taking a month as a period,
amount = $[43 485.03  (1 + 0.5%)48 + 500  4] 1M+1M
= $57 247.26, cor. to the nearest $0.01 1A
∵ $57 247.26 > $57 000 1M
∴ Calvin should take out the loan from bank A. 1A
<end>
<code=10118761>
<bk=3A><ch=3><ex=3C><type=L2><mark=8><title=10118761><content>
The height of a tree was 1.6 m at the beginning of 2010. Its height increased at a constant rate of
20% per year from 2010 to 2015.
(a) Find the height of the tree at the end of 2015, correct to 3 significant figures.
(b) If the height of the tree increases by 8% steadily every year from 2016 onwards, will the tree
be taller than 6 m at the beginning of 2019? Explain your answer.
(8 marks)
Solution:
(a) Number of periods = 2015 – 2010 + 1 = 6 1A
Height of the tree at the end of 2015
= 1.6  (1 + 20%)6 m 1M
= 4.78 m, cor. to 3 sig. fig. 4.777 6 1A
(b) Number of periods = 2019 – 2016 = 3 1A

Height of the tree at the beginning of 2019
= 4.777 6  (1 + 8%)3 m 1M
= 6.02 m, cor. to 3 sig. fig. 1A
>6m 1M
∴ The tree will be taller than 6 m at the beginning of 2019. 1A

<end>

<code=10118791>
The value of an antique oil painting increases at a steady rate of 25% every 5 years. Its present
value is $150 000.
(a) Find its value 20 years ago.
(b) Find the increase in its value over the past 20 years.
(6 marks)
Solution:
(a) Let $P be the value of the painting 20 years ago.
Taking 5 years as a period,
20
number of periods in 20 years = =4 1A
5
150 000 = P(1 + 25%)4 1M+1A
150 000 = P(1.25)4
150 000
P=
1.254
= 61 440
∴ The value of the painting 20 years ago was $61 440. 1A
(b) Increase in value

= $(150 000 – 61 440) 1M
= $88 560 1A
<end>
<code=10118796>
In 2000, the fare of a bus route was $12. The fare increased to $12.6 in 2002.
(a) Find the growth factor of the fare over the two years.
(b) Suppose the growth factor for every 2 years remains unchanged. Find the fare of the bus route
in 2016, correct to the nearest $0.1.
(5 marks)
Solution:
(a) Let y be the growth factor.
12  y = 12.6 1M
12.6
y=
12
= 1.05
∴ The growth factor is 1.05. 1A

2016  2002
(b) Taking 2 years as a period, number of periods = =7 1A
2
Fare of the bus route in 2016
= $12.6  1.057 1M
= $17.7, cor. to the nearest $0.1 1A
<end>
<code=10118824>
The water consumption of Mr Chan’s family increased at a steady rate per month from April to
October. The family consumed 40 m3 and 41.2 m3 of water in April and May respectively. Find the
increase in the water consumption from April to October, correct to the nearest m3.
(7 marks)
Solution:
Let y be the growth factor.
40  y = 41.2 1M
41.2
y=
40
= 1.03 1A
Number of periods = 10 – 4 = 6 1A
Water consumption in October
= 40  1.036 m3 1M
= 47.76 m3, cor. to the nearest 0.01 m3 1A
Increase in water consumption = (47.76 – 40) m3 1M
= 8 m3, cor. to the nearest m3 1A
<end>
<code=10118837>
<bk=3A><ch=3><ex=3D><type=L2><mark=7><title=10118837><content>
A factory produces 40 000 toy cars this month. Suppose the monthly number of toy cars produced
decreases by 9% every 2 months. Find the monthly number of toy cars produced
(a) 10 months later,
(b) 1 year ago.
(Give the answers correct to the nearest 100.)
(7 marks)
Solution:
(a) Taking 2 months as a period,
10
number of periods = =5 1A
2

Monthly number of toy cars produced 10 months later
= 40 000  (1 – 9%)5 1M
= 25 000, cor. to the nearest 100 1A
(b) Let n be the monthly number of toy cars produced 1 year ago.
12
Number of periods = =6 1A
2
40 000 = n(1 – 9%)6 1M+1A
40 000
n=
0.916
= 70 400, cor. to the nearest 100
∴ The monthly number of toy cars produced 1 year ago was 70 400. 1A
<end>
<code=10118981>
The value of a flat was $4 500 000 in 2013. Its value then decreased to $3 960 000 in 2014.
(a) Find the decay factor of the value of the flat over the year.
(b) Suppose the value of the flat decreases by the same decay factor each year. Find the decrease
in the value of the flat from 2013 to 2017.
(Give the answer correct to the nearest $10 000.)
(6 marks)
Solution:
(a) Let y be the decay factor.
4 500 000  y = 3 960 000 1M
3 960 000
y = 4 500 000
= 0.88
∴ The decay factor is 0.88. 1A

Value of the flat in 2017 = $4 500 000  0.884
1M
= $2 698 629.12 1A
Decrease = $(4 500 000 − 2 698 629.12)
= $1 800 000, cor. to the nearest $10 000 1A
<end>

<code=10118992>
The value of a digital camera at the beginning of 2013 was $5 000. At the end of 2013, the value of
the camera was $4 200.
(a) Find the percentage decrease in the value of the camera over that year.
(b) If the value of the digital camera continues to depreciate at the same rate as in (a) every year,
find the value of the camera at the end of 2016.
(6 marks)
Solution:
5 000  4 200
(a) Percentage decrease =  100% 1M
5 000
= 16% 1A

Value of the camera at the end of 2016 = $4 200  (1 – 16%) 3
1M+1M
<end>
<code=10118996>
Eason bought a watch one year ago and its value depreciates steadily by 25% every 6 months. Its
present value is $3 600.
(a) Find the original price of the watch.
(b) When the depreciation of the watch is greater than $2 700, Eason will buy a new watch. Will
he buy a new watch now? Explain your answer.
(8 marks)
Solution:
(a) Let $P be the original price of the watch.
12
Taking 6 months as a period, number of periods in 1 year = =2 1A
6
3 600 = P(1 – 25%)2 1M+1A
3 600
P=
0.752
= 6 400
∴ The original price of the watch was $6 400. 1A
(b) Depreciation = $(6 400 – 3 600) 1M

= $2 800 1A
> $2 700 1M
∴ Eason will buy a new watch now. 1A
<end>

<code=10119001>
Starting from January, Paul reduced his electricity consumption by a constant rate of 10% per
month. The sum of electricity consumption in January and that in April was 864.5 units. He claims
that the reduction in the electricity consumption in December was over 350 units as compared to
January. Do you agree? Explain your answer.
(8 marks)
Solution:
Let P units be the electricity consumption in January.
Number of periods from January to April = 4 – 1 = 3 1A
3
Electricity consumption in April = P(1 – 10%) units 1M
= 0.729P units
P + 0.729P = 864.5
1.729P = 864.5
864.5
P=
1.729
= 500 1A
Number of periods from January to December = 12 – 1 = 11
Electricity consumption in December
= 500  (1 – 10%)11 units 1M
= 156.91 units, cor. to 2 d.p. 1A
Reduction in electricity consumption
= (500 – 156.91) units
= 343.09 units 1A
∵ 343.09 units < 350 units 1M
<end>
<code=10119031>
Anna bought an antique sofa at the beginning of 2006. From the beginning of 2006 to the end of
2013, the value of the sofa decreased by 7% every 2 years. At the end of 2013, the depreciation of
the sofa was $9 600.
(a) Find the value of the sofa at the end of 2013.
(b) From 2014 onwards, the value of the sofa increased by the growth factor 1.1 per year. Find the
value of the sofa at the end of 2016.
(Give the answers correct to the nearest dollar.)
(8 marks)
Solution:

(a) Let $P be the value of the sofa at the beginning of 2006.
Taking 2 years as a period,
2013  2006  1
number of periods = =4 1A
2
9 600 = P – P(1 – 7%)4 1M+1A
9 600 = P(1 – 0.934)
9 600
P=
1  0.934
= 38 103.10, cor. to 2 d.p. 1A
Value of the sofa the end of 2013
= $(38 103.10 – 9 600)
= $28 503, cor. to the nearest dollar 28 503.10 1A

Value of the sofa at the end of 2016
= $28 503.10  1.13 1M
<end>
<code=10119107>
<bk=3A><ch=3><ex=3E><type=L2><mark=3><title=10119107><content>
A flat is bought for $2 500 000 at the beginning of 2014. The price of the flat rose by 40% in 2014,
then dropped by 16% in 2015 and dropped by a further 25% in 2016. Find the price of the flat at
the end of 2016.
(3 marks)
Solution:
Price of the flat at the end of 2016
= $2 500 000  (1 + 40%)  (1 – 16%)  (1 – 25%) 1M+1A
= $2 500 000  1.4  0.84  0.75
= $2 205 000 1A
<end>

<code=10119145>
The income of a boutique decreased by 28% from January to Feburary, and then increased by 50%
from February to March. Find the overall percentage change in the income of the boutique in
March as compared to that in January.
(4 marks)
Solution:
Let $x be the income of the boutique in January.
Income of the boutique in March = $x(1 – 28%)(1 + 50%) 1M
= $1.08x 1A
∴ Overall percentage change
1.08 x  x
=  100% 1M
x
0.08 x
=  100%
x
= +8% 1A
<end>
<code=10119160>
In this month, Mr Chan’s family consumes 14% less town gas, but the charge per unit of town gas
is increased by 5% as compared to last month. Find the percentage change in the charge of town
gas in this month as compared to last month.
(6 marks)
Solution:
Let x units be the town gas consumption and $y be the charge per unit of town gas last month.
Charge of town gas last month = $xy 1A
Town gas consumption this month = x(1 – 14%) units 1M
= 0.86x units
Charge per unit of town gas this month = $y(1 + 5%)
= $1.05y
Charge of town gas this month = $0.86x(1.05y) 1M
= $0.903xy 1A
∴ Percentage change in the charge of town gas
0.903 xy  xy
=  100% 1M
xy
 0.097 xy
=  100%
xy
= –9.7% 1A
<end>

<code=10119169>
David’s monthly expenditure is composed of travelling expenses and food expenses. Last month,
the ratio of travelling expenses to food expenses was 3 : 5. In this month, the travelling expenses
decreases by 20% and the food expenses decreases by 12%. David claims that the expenditure this
month is 16% less than that last month. Do you agree? Explain your answer.
(8 marks)
Solution:
Let $x be the expenditure last month.
3x 3x
Travelling expenses last month = $ =$ 1M
35 8
5x 5x
Food expenses last month = $ =$
35 8
3x
Travelling expenses this month = $  (1  20%) = $0.3x 1M
8
5x
Food expenses this month = $  (1  12%) = $0.55x
8
Expenditure this month = $(0.3x + 0.55x) = $0.85x 1M+1A
Percentage change in the expenditure
0.85 x  x
=  100% 1M
x
 0.15 x
=  100%
x
= –15% 1A
 –16% 1M
<end>
<code=10119254>
An orchestra organizes a concert every year. The net income of a concert is equal to the total ticket
income minus the total cost. Last year, 1 000 audience attended the concert, the ticket price was
$440 and the total cost was $240 000.
(a) Find the net income last year.
(b) This year, the total cost increases by 9%, while the ticket price decreases by 24%. If the
orchestra wants to have an increase of 20% in net income as compared to last year, what
should be the percentage increase in the attendance of the concert?
(8 marks)
Solution:
(a) Net income last year = $(440  1 000 – 240 000) 1M
= $200 000 1A

(b) Let n be the attendance this year.
Total cost this year = $240 000  (1 + 9%) 1M
= $261 600
Ticket price this year = $440  (1 – 24%)
= $334.4
∴ 334.4n – 261 600 = 200 000  (1 + 20%) 1M+1A
334.4n – 261 600 = 240 000
334.4n = 501 600
n = 1 500 1A
The required percentage increase in attendance
1 500  1 000
=  100% 1M
1 000
= 50% 1A
<end>
<code=10119349>
<bk=3A><ch=3><ex=3F><type=L2><mark=4><title=10119349><content>
Miss Tse paid $5 860 for the rates last year. This year, she moves to a new flat and the rates
payable increases by 35% as compared to last year. What is the rateable value of the new flat?
(Suppose the rates percentage charge is 5%.)
(4 marks)
Solution:
Rates payable for the new flat
= $5 860  (1 + 35%) 1M
= $7 911
Let $x be the rateable value of the new flat.
x  5% = 7 911 1M+1A
0.05x = 7 911
7 911
x=
0.05
= 158 220
∴ The rateable value of the new flat is $158 220. 1A
<end>
<code=10119352>
Miss Yeung paid $5 900 for rates on her flat last year. This year, the rateable value of the flat has
changed to $106 200. What is the percentage change in the rateable value this year as compared to
last year?
(Suppose the rates percentage charge is 5%.)

(5 marks)
Solution:
Let $x be the rateable value of the flat last year.
x  5% = 5 900 1M+1A
0.05x = 5 900
5 900
x=
0.05
= 118 000 1A
∴ The required percentage change
106 200  118 000
=  100% 1M
118 000
= –10% 1A
<end>
<code=10119381>
The salaries tax rates are as shown in the following table:
Net chargeable income Rate

On the first $40 000 2%
On the next $40 000 7%
On the next $40 000 12%
Remainder 17%
The monthly income of Sophia is $21 200. If she has a total allowance of $120 000, find her
salaries tax payable.
(5 marks)
Solution:
Net chargeable income
= $(21 200  12 – 120 000) 1M
= $134 400
= $(40 000 + 40 000 + 40 000 + 14 400) 1M
Tax
On the first $40 000 2% $ 800
On the next $40 000 7% $2 800
On the next $40 000 12% $4 800
Remainder $14 400 17% $2 448 1M+1A
Total tax: $10 848
∴ Her salaries tax payable is $10 848. 1A
<end>

<code=10119397>

On the next $40 000 12%
Remainder 17%
Kenneth has a total allowance of $200 000 and he has to pay $10 100 in salaries tax. It is known
that the net chargeable income of Kenneth is over $120 000, find his average monthly salary.
(6 marks)
Solution:
Let $(120 000 + x) be the net chargeable income of Kenneth. 1M
Salaries tax payable
= $(40 000  2% + 40 000  7% + 40 000  12% + x  17%) 1M
= $(8 400 + 0.17x)
∴ 8 400 + 0.17x = 10 100 1M
0.17x = 1 700
x = 10 000 1A
Annual income = $(120 000 + 10 000 + 200 000) 1M
= $330 000
330 000
∴ Average monthly salary = $ = $27 500 1A
12
<end>
<code=10119425>

On the next $45 000 12%
Remainder 17%
Alice has a total allowance of $132 000 and her salaries tax payable is $720. It is known that
Alice’s net chargeable income is less than $45 000.
(a) Find Alice’s annual income.
(b) Roy’s annual income is 3 times Alice’s annual income. If Roy has a total allowance of
$132 000, is his salaries tax payable 3 times that of Alice? Explain your answer.

(12 marks)
Solution:
(a) Let $x be Alice’s net chargeable income.
x  2% = 720 1M+1A
0.02x = 720
720
x=
0.02
= 36 000 1A
∴ Annual income = $(36 000 + 132 000) = $168 000 1M+1A
(b) Roy’s net chargeable income = $(168 000  3 – 132 000) 1M

= $372 000
= $(45 000 + 45 000 + 45 000 + 237 000) 1M
Net chargeable income Rate Tax
On the first $45 000 2% $ 900
On the next $45 000 7% $ 3 150
On the next $45 000 12% $ 5 400
Remainder $237 000 17% $40 290 1M+1A
Total tax: $49 740 1A
$49 740
∵ = 69.08…  3 1M
$720
∴ Roy’s salaries tax payable is not 3 times that of Alice. 1A
<end>
<code=10119435>
Patrick borrowed $50 000 from a bank at a simple interest rate of 12% p.a. for 2 years. John
borrowed $10 000 from the same bank at a simple interest rate of 25% p.a. for some years. If the
interest paid by John was $8 250 less than that paid by Patrick, for how long did John borrow the
money?
(6 marks)
Solution:
Interest paid by Patrick = $50 000  12%  2 = $12 000 1M+1A
Interest paid by John = $(12 000 – 8 250) = $3 750 1A
Let n years be the time for which John borrowed the money.
3 750 = 10 000  25%  n 1M+1A
3 750 = 2 500n
3 750
n = 2 500
= 1.5
∴ John borrowed the money for 1.5 years. 1A
<end>

<code=10119449>
Kevin wants to deposit $200 000 in a bank. If the sum of money is deposited in bank A for 2 years,
the simple interest received is $16 000. If the sum of money is deposited in bank B for 30 months
and simple interest is calculated, the amount received is $217 500. Which bank offers a higher
interest rate per annum? Explain your answer.
(8 marks)
Solution:
Let R% and r% be the interest rates per annum offered by banks A and B respectively.
For bank A,
16 000 = 200 000  R%  2 1M+1A
R
16 000 = 200 000  2
100
R=4 1A
For bank B,
 30 
217 500 = 200 0001  r %   1M+1A
 12 
217 500 r 30
200 000
= 1 
100 12
1.087 5 = 1 + 0.025r
r = 3.5 1A
∵ 4 > 3.5 1M
∴ Bank A offers a higher interest rate per annum. 1A
<end>
<code=10119484>
Bank A offers an interest rate of 6% p.a. compounded half-yearly. Bank B offers an interest rate of
7% p.a. compounded yearly. Mr Tse wants to deposit $100 000 in one of the two banks for 5 years.
Which bank should he choose so that he can receive more interest? Explain your answer.
(7 marks)
Solution:
For bank A,
6%
interest rate for half a year = = 3% 1A
2
Taking half a year as a period,
interest = $100 000  [(1 + 3%)10 – 1] 1M

For bank B,
interest = $100 000  [(1 + 7%)5 – 1]
∵ $40 255 > $34 392 1M
∴ He should choose bank B. 1A
<end>
<code=10119494>
Owen deposited $3 000 in bank A and the simple interest he received after 1 year was $180. He
then deposited the total amount in bank B which offered the same interest rate as bank A but the
interest was compounded quarterly. What was the amount received 2 more years later?
(8 marks)
Solution:
Let r% be the interest rate per annum offered by bank A.
180 = 3 000  r%  1 1M+1A
180 r
3 000
=
100
r=6 1A
∴ The interest rate per annum offered by bank A is 6%.
Amount obtained in bank A = $(3 000 + 180) = $3 180 1A
For bank B,
6%
interest rate per quarter = = 1.5% 1A
4
Taking a quarter as a period,
The required amount = $3 180  (1 + 1.5%)8 1M
<end>
<code=10119602>
Carrie’s annual income increases by 35% every year. Her annual income this year is $1 822 500.
Find her annual income
(a) 2 years ago,
(b) 3 years later.
(Give the answers correct to the nearest $1 000 if necessary.)
(5 marks)
Solution:

(a) Let $V be her annual income 2 years ago.
V(1 + 35%)2 = 1 822 500 1M+1A
1.822 5V = 1 822 500
V = 1 000 000
∴ Her annual income 2 years ago was $1 000 000. 1A
(b) Her annual income 3 years later

= $1 822 500  (1 + 35%)3 1M
= $4 484 000, cor. to the nearest $1 000 1A
<end>
<code=10119668>
The data usage of Wendy increased at a constant rate every month from June to September. Wendy
used 600 MB and 630 MB of data in June and July respectively.
(a) Find the percentage increase in the monthly data usage.
(b) It is given that the charge per MB of data usage is $0.05. Find the charge for data usage in
September.
(6 marks)
Solution:
(a) Percentage increase
630  600
 100%
= 600 1M
= 5% 1A

Charge for data usage in September
= $0.05  600  (1 + 5%)3 1M+1M
= $35, cor. to the nearest dollar 1A
<end>
<code=10119875>
The monthly expense of a family decreases at a rate of 10% per month from January. If the total
expense of the family in January, February and March was $32 520, what was the monthly
expense of the family in January?
(3 marks)
Solution:
Let $P be the monthly expense of the family in January.

P + P(1 – 10%) + P(1 – 10%)2 = 32 520 1M+1A
P(1 + 0.9 + 0.81) = 32 520
2.71P = 32 520
P = 12 000
∴ The monthly expense of the family in January was $12 000. 1A
<end>
<code=10119891>
The length, width and height of a cuboid are 15 cm, 12 cm and 18 cm respectively. If the length
increases by 20%, the width decreases by 25%, and the volume increases by 8%, find
(a) the new volume,
(b) the new height,
(c) the percentage change in the height
of the cuboid.
(9 marks)
Solution:
(a) Original volume of the cuboid = 15  12  18 cm3 1M
= 3 240 cm3
New volume of the cuboid = 3 240  (1 + 8%) cm3 1M
= 3 499.2 cm3 1A
(b) New length of the cuboid = 15  (1 + 20%) cm 1M

= 18 cm
New width of the cuboid = 12  (1 – 25%) cm
= 9 cm
Let h cm be the new height of the cuboid.
18  9  h = 3 499.2 1M+1A
h = 21.6
∴ The new height of the cuboid is 21.6 cm. 1A
(c) Percentage change in the height of the cuboid

21.6  18
=  100% 1M
18
= +20% 1A
<end>

<code=10119962>
A set dinner is composed of an appetizer, a main dish and a dessert. The costs of the components
of the set dinner last year are listed below:
Appetizer: $8
Main dish: $12
Dessert: $5
This year, the cost of appetizer decreases by 5%, while the cost of main dish increases by 25%. If
the total cost of the set dinner increases by 4.4%, find the percentage change in the cost of the
dessert.
(7 marks)
Solution:
Total cost of the set dinner last year = $(8 + 12 + 5)
= $25 1A
Cost of the appetizer this year = $8  (1 – 5%) 1M
= $7.6
Cost of the main dish this year = $12  (1 + 25%)
= $15
Let $x be the cost of the dessert this year.
7.6 + 15 + x = 25  (1 + 4.4%) 1M+1A
22.6 + x = 26.1
x = 3.5 1A
3. 5  5
∴ Percentage change in the cost of the dessert =  100% 1M
5
= –30% 1A
<end>
<code=10119983>
The production cost of a handmade figure is the sum of the raw material cost and the labour cost.
Last month, the labour cost was 1.4 times the raw material cost. This month, the raw material cost
increases by 12% and the labour cost decreases by 15%. Find the percentage change in the
production cost of the handmade figure.
(8 marks)
Solution:
Let $x be the raw material cost last month.
Labour cost last month = $1.4x 1A
Production cost last month = $(x + 1.4x)
= $2.4x 1A
Raw material cost this month = $x(1 + 12%) 1M

= $1.12x
Labour cost this month = $1.4x(1 – 15%) 1M
= $1.19x
Production cost this month = $(1.12x + 1.19x) 1M
= $2.31x 1A
∴ Percentage change in the production cost
2.31x  2.4 x
=  100% 1M
2 .4 x
 0.09 x
=  100%
2. 4 x
= –3.75% 1A
<end>
<code=10119999>
In this month, the monthly cost of running an indoor playground is $20 000. 2 000 customers visit
the playground and each of them pays $25 as an entrance fee. Since the monthly cost will increase
by 35% next month, the manager of the playground raises the entrance fee by 10% next month. If
the manager wants to have an increase of 30% in the monthly profit, find the expected percentage
increase in the number of customers.
(9 marks)
Solution:
Monthly profit this month = $(25  2 000 – 20 000) 1M
= $30 000 1A
Monthly cost next month = $20 000  (1 + 35%) 1M
= $27 000
Entrance fee next month = $25  (1 + 10%)
= $27.5
Monthly profit next month = $30 000  (1 + 30%) 1M
= $39 000
Let n be the expected number of customers next month.
27.5  n – 27 000 = 39 000 1M+1A
27.5n = 66 000
n = 2 400 1A
2 400  2 000
∴ The expected percentage increase =  100% 1M
2 000
= 20% 1A
<end>

<code=10120011>
On the next $40 000 12%
Remainder 17%
Mr Ng’s net chargeable income is $150 000.
(a) Find Mr Ng’s salaries tax payable.
(b) If Mr Chung’s salaries tax payable is half of Mr Ng’s, find the net chargeable income of
Mr Chung.
(8 marks)
Solution:
(a) Net chargeable income
= $150 000
= $(40 000 + 40 000 + 40 000 + 30 000) 1M
Net chargeable income Rate Tax
On the first $40 000 2% $ 800
On the next $40 000　 7%　 $ 2 800
On the next $40 000　 12%　 $ 4 800
Remainder $30 000　 17%　 $ 5 100 1M+1A
Total tax: $13 500
∴ Mr Ng’s salaries tax payable is $13 500. 1A
(b) Mr Chung’s salaries tax payable

13 500
=$
2
= $6 750
= $(800 + 2 800 + 3 150) 1M
∵ 800 + 2 800 < 6 750 < 800 + 2 800 + 4 800
∴ $80 000 < Mr Chung’s net chargeable income < $120 000 1A
Let $P be Mr Chung’s net chargeable income.
(P – 80 000)  12% = 3 150 1M
P – 80 000 = 26 250
P = 106 250
∴ Mr Chung’s net chargeable income is $106 250. 1A
<end>

Level 2: New Century Mathematics (Second Edition) S3 Question Bank 3A Chapter 3 Percentages (II)

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Level 2: New Century Mathematics (Second Edition) S3 Question Bank 3A Chapter 3 Percentages (II)

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New Century Mathematics (Second Edition)

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.27

(b) Let T years be the time required.

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.28

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.29

(b) Interest received by Jason after 2 years = $ 150 000  2.8%  2

(b) Interest received over the 3 years = $30 000  3.2%  3

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.30

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.31

(b) Interest = $91 825  [(1 + 9%)3 – 1] 1M+1M

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.32

= 49 019, cor. to the nearest integer

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.33

= 25 919.71, cor. to 2 d.p. 1A

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.34

(b) For bank B,

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.35

(b) For bank B,

(b) Number of periods = 2019 – 2016 = 3 1A

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.36

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.37

(b) Increase in value

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.38

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.39

(b) Number of periods = 2017 – 2013 = 4 1A

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.40

(b) Number of periods = 2016 – 2013 = 3 1A

(b) Depreciation = $(6 400 – 3 600) 1M

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.41

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.42

(b) Number of periods = 2016 – 2013 = 3 1A

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.43

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.44

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.45

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.46

Net chargeable income Rate

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.47

Net chargeable income Rate

Net chargeable income Rate

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.49

(b) Roy’s net chargeable income = $(168 000  3 – 132 000) 1M

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.51

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.52

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.53

(b) Her annual income 3 years later

(b) Number of periods = 9 – 6 = 3 1A

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.54

(b) New length of the cuboid = 15  (1 + 20%) cm 1M

(c) Percentage change in the height of the cuboid

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.55

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.56

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.57

(b) Mr Chung’s salaries tax payable

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 2 P.58

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