Finance, Growth & Decay is one of 10 topics in the Grade 12 Mathematics CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. A lump sum growing at compound interest uses which formula?
A = P(1+i)^n
A = P(1-i)^n
A = Pin
A = P + in
Answer: A = P(1+i)^n — Compound growth of a single lump sum over n periods at rate i is A=P(1+i)n.
Easy
2. A car depreciating at compound interest uses which formula?
A = P(1-i)^n
A = P(1+i)^n
A = P - in
A = Pi^n
Answer: A = P(1-i)^n — Compound decay (depreciation) of a lump sum is A=P(1−i)n.
Medium
3. R5000 is invested at 8% p.a. compound interest for 2 years. What is the value to the nearest rand? A=5000(1,08)2.
