Finance · Guided Practice

Multipliers and Interest

4 questions with answers. Try each one before revealing the answer.

1
Write down the decimal multiplier for:
(a) an increase of 3.4%\displaystyle 3.4\%
(b) a decrease of 2.75%\displaystyle 2.75\%
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2
£3800\displaystyle \pounds 3800 is deposited in an account with an effective rate of interest of 2.6%\displaystyle 2.6\% per year.
Calculate the value of the account after 1\displaystyle 1 year.
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3
£9200\displaystyle \pounds 9200 is invested in an account with an effective rate of interest of 3.15%\displaystyle 3.15\% per year.
Calculate the value of the investment after 4\displaystyle 4 years.
Give your answer to the nearest penny.
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4
An investment of £7500\displaystyle \pounds 7500 grows by 4.2%\displaystyle 4.2\% in the first year and then by 1.9%\displaystyle 1.9\% in the second year.
Calculate its value after 2\displaystyle 2 years.
Give your answer to the nearest penny.
Video solution coming soon