Mathematics 0580 · IGCSE · Exponential growth and decay

Exponential growth and decay — practice question

(a)[2]

Dina puts $\$600$ into an investment for 5 years at compound interest of $2\%$ per year. Calculate the value of this investment at the end of the 5 years.

(b(i))[2]

The value of a gold ring grows exponentially at a rate of $5\%$ per year. It is currently worth $\$882$. Calculate the value of the ring 2 years ago.

(b(ii))[2]

Find the number of complete years needed for the ring’s value of $\$882$ to rise to a value greater than $\$1100$.

Worked solution & mark scheme

This 6-mark question has a full step-by-step worked solution and mark scheme. One marking point: Accurate compound-interest working

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