2.

9 A formula for compound interest

Homework
1 Callum invests $3000 at 5% per annum compound interest.
Work out the value of his investment after four years.
2 Hauwa invests $3800 at 4% compound interest.
Work out the value of her investment after five years.
3 Yusuf invests $2500 at 3.5% per annum compound interest.
Work out the value of his investment after:
a two years b five years c ten years.
4 Aisha invests $1700 at 6.5% per annum compound interest.
a How much is the investment worth after three years?
b How much is it worth after seven years?
5 Chalo invests $15 000 at 4.2% per annum compound interest for four years.
How much interest does he receive?
6 Xueli takes out a loan of $2600. The rate of compound interest is 2.5% per month.
After eight months she wants to pay off the loan and the interest.
How much must she pay altogether?
7 An investment is earning 8% per annum compound interest.
How long will it take for the investment to almost double in value?
8 Preye invests $5000 at 6% annual interest.
Work out how much the investment is worth after eight years if this is:
a simple interest
b compound interest.
9 Credit cards usually charge monthly compound interest on any unpaid amounts.
Jun-Yin has a loan of $2000 on her credit card.
There is a 2.3% monthly charge.
a Work out the size of Jun-Yin’s loan after 12 months if she does not pay off any money.
b What is this amount as an annual percentage?

Cambridge IGCSE™ Maths Teacher’s Guide © HarperCollinsPublishers Ltd 2023