Edexcel IGCSE Math A 1.6.G Compound Interest & Depreciation

Practise repeated growth and depreciation with multipliers, including reverse and missing-rate problems.

Exam points

raise the annual multiplier to the number of years before applying the starting value
use a multiplier below 1 for depreciation and above 1 for compound growth
rearrange a final-value equation to solve for an unknown annual rate

[Maximum number: 3]

Otis sells ice creams.
On Friday, Otis sells 75 ice creams.
On Saturday, Otis sells 87 ice creams.

Work out the value of the ice cream machine at the end of 3 years.

Working:
$960\times0.8^3=491.52$

Final answer:
491.52

M1 for a first depreciation step such as $0.8\times960=768$ . M1 for a complete 3-year depreciation method. A1 for 491.52; accept 491-492. Special-case marks as in official notes.

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1.6.G Compound interest and depreciation question 1