1 / 5

Repeated Proportional Change

Repeated Proportional Change. OCR Module 8. Reminder. How to calculate a PERCENTAGE change. Decrease £17.60 by 15%. Left with 85% of 17.60. MULTIPLIER of 0.85. 85% of 17.60. = 17.60 x 0.85. = £14.96. So…. We can use this procedure for repeated changes like

ebony
Download Presentation

Repeated Proportional Change

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Repeated Proportional Change OCR Module 8

  2. Reminder • How to calculate a PERCENTAGE change • Decrease £17.60 by 15% Left with 85% of 17.60 MULTIPLIER of 0.85 85% of 17.60 = 17.60 x 0.85 = £14.96

  3. So…. • We can use this procedure for repeated changes like • Interest of money in bank account • Depreciation of a motor car

  4. e.g. Interest on Bank Account £4 000 earns 5% interest each year. How much is it worth after 3 years? End of Year 1 4 000 x 1.05 = 4 200 COMPOUND INTEREST 4 000 x 1.051 4 000 x 1.05 End of Year 2 4 200 x 1.05 = 4 410 4 000 x 1.052 4 000 x 1.05 x 1.05 End of Year 3 4 410 x 1.05 = 4 630.50 4 000 x 1.053 4 000 x 1.05 x 1.05 x 1.05

  5. Simple Interest? • If an account only receives SIMPLE INTEREST, the £200 earned in the first year would be the same for every year • In our example, that means 4 000 + 3 x 200 = £4 600

More Related