Finance, Growth & Decay is one of 9 topics in the Grade 11 Technical 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. Which formula represents simple growth?
A = P(1 + in)
A = P(1 + i)^n
A = P(1 - in)
A = P(1 - i)^n
Answer: A = P(1 + in) — Simple growth uses the formula A = P(1 + in), where interest is calculated only on the original principal.
Easy
2. In compound growth, interest is calculated on:
The current total (principal plus all interest already earned)
Only the original principal, every time
A fixed amount, unrelated to the principal
Nothing -- compound growth has no interest
Answer: The current total (principal plus all interest already earned) — Compound growth calculates each period's interest on the current total, which includes previously earned interest, causing faster-than-simple growth.
Medium
3. R5000 is invested at 8% simple interest per year for 6 years. Calculate the final amount, A.
Answer: 7400 — A = 5000(1+0.08x6) = 5000(1.48) = R7400.
