💷 Percentages and compound interest

Answer key

1. (d) £6 — First find 30% of £200, which is £60, then find 10% of that: £60 × 0.1 = £6. Adding the two percentages together instead of applying them one after the other, 10% + 30% = 40%, and finding 40% of £200 gives £80. Finding 30% of £200 = £60 correctly but stopping before applying the second percentage leaves £60 as the final answer. Finding only 10% of the original £200, ignoring the 30% entirely, gives £20.
2. (d) 60 — Method: 75% is three quarters, so divide by 4 to find one quarter and then multiply by 3. Working: 80 ÷ 4 = 20 for one quarter, and 3 × 20 = 60. Answer: 60 milk chocolates. The distractors: 20 is one quarter of 80, which is 25% and not 75%; 55 comes from subtracting 25 from 80 rather than taking 25% of 80 away from it; 75 comes from quoting the percentage itself as a number of chocolates.
3. (c) 200 students — Method: find the percentage who have a brother or a sister, taking care that the students with both are not counted twice, then take that percentage from 100% and apply the result to the 400 students. Working: 25% + 40% = 65%, but the 15% with both has been counted in each of those figures, so 65% − 15% = 50% have a brother or a sister; that leaves 100% − 50% = 50%, and 50% of 400 = 200. Answer: 200 students. The distractors: 260 students is 65% of 400, the number with a brother or a sister when the 15% overlap is counted twice; 140 students comes from taking that same uncorrected 65% away from the 400; 300 students comes from subtracting only the 25% with a brother and ignoring the sisters altogether.
4. (a) 3/8, 41%, 0.43 — Method: convert every value to a decimal so they can be compared on the same scale, then order them. Working: 3/8 = 0.375, 41% = 0.41, and 0.43 stays as 0.43, so from smallest to largest the decimals are 0.375, 0.41, 0.43, giving the order 3/8, 41%, 0.43. Answer: 3/8, 41%, 0.43. The order 3/8, 0.43, 41% comes from comparing 0.43 and 41% as raw digits (43 versus 41) without converting 41% into the decimal 0.41 first, wrongly placing 0.43 before 41%. The order 0.43, 41%, 3/8 comes from placing the values in completely reversed order, from largest to smallest instead of smallest to largest. The order 41%, 0.43, 3/8 comes from ordering the values by their TYPE (percentage, then decimal, then fraction) rather than by their actual size.
5. (a) 4 — Method: a unit fraction acts as an operator, so finding 1/5 of an amount means dividing that amount by 5. Working: 20 ÷ 5 = 4, so Noah gives away 4 stickers. Answer: 4 stickers. The distractors: 100 comes from multiplying by the denominator instead of dividing by it, giving 20 × 5 = 100; 16 comes from working out how many stickers Noah keeps, the other four fifths of the pack, instead of how many he gives away; 5 comes from writing down the denominator, which is the number of equal groups the pack is split into rather than the size of one group.
6. (a) £85.47 — Value after 2 years: £1200 × 1.035 × 1.035 = £1285.47 (nearest penny). Interest earned = £1285.47 − £1200 = £85.47. £1285.47 is the total value of the account, not the interest earned on top of the original £1200. £84.00 comes from using simple interest instead of compound interest: £1200 × 0.035 × 2 = £84.00. £42.00 comes from working out only the first year's interest and stopping there: £1200 × 0.035 = £42.00.
7. (c) £70 — Method: 20% of an amount is 20/100 of it; a reliable route is to find 10% by dividing by 10 and then double it. Working: 10% of £350 is £350 ÷ 10 = £35, and 20% is twice as much, £35 × 2 = £70. Answer: £70. The distractors: £35 comes from finding 10% and stopping there; £17.50 comes from reading 20% as one twentieth and working out £350 ÷ 20 = £17.50; £280 comes from taking 20% off the money raised rather than finding 20% of it, giving £350 ÷ 5 = £70 and then £350 − £70 = £280.
8. (b) £60 — £48 represents 100% − 20% = 80% of the original price. 1% = £48 ÷ 80 = £0.60, so 100% = £0.60 × 100 = £60.
9. (a) 5 — Method: 10% is 10/100, which cancels to 1/10, so finding 10% of an amount means dividing it by 10. Working: 10% = 10/100 = 1/10, and 50 ÷ 10 = 5. Answer: 5 questions. The distractors: 10 comes from reading the 10% as a count of 10 questions rather than as an operator acting on the 50; 45 comes from working out how many questions Freya answers correctly, the other 90% of the quiz, instead of how many she gets wrong; 500 comes from multiplying by 10 instead of dividing by 10.
10. (d) 2748 — A 7% increase each year means the value becomes 100% + 7% = 107% of the previous year's value, and 107% = 1.07, so the multiplier is 1.07. Multiply by 1.07 for each of the 2 years: 2400 × 1.07 × 1.07 = 2747.76, which rounds to 2748. (2736 comes from using simple growth instead of compound: 2400 + 2 × (2400 × 0.07) = 2736. 2568 is the population after only 1 year, 2400 × 1.07, forgetting the second year's growth. 2747 comes from rounding 2747.76 down instead of up to the nearest whole number.)
11. (d) 19% — Method: write each decrease as a multiplier, multiply the multipliers, then compare the result with 100%. Working: a 10% decrease is a multiplier of 0.9, so the two reductions together give 0.9 × 0.9 = 0.81; the final price is 81% of the original, so the price has fallen by 100% − 81% = 19%. Answer: an overall decrease of 19%. The distractors: 20% comes from adding the two reductions, 10% + 10%, which charges the second 10% against the original price instead of against the already reduced price; 21% comes from using the increase multiplier by mistake, since 1.1 × 1.1 = 1.21, and reading that 21% as a decrease; 81% is the percentage of the original price still being paid, not the percentage taken off.
12. (d) £50.00 — The sale price is 85% of the original, so the original price = £42.50 ÷ 0.85 = £50.00. 15% of £42.50 is £6.375. A candidate who finds 15% of £42.50 and subtracts it from the sale price gets £42.50 − £6.375 = £36.125, which is £36.13 to the nearest penny. A candidate who adds 15% of £42.50 instead of reversing the decrease gets £42.50 + £6.375 = £48.875, which is £48.88 to the nearest penny. A candidate who divides by 0.15 instead of 0.85 gets £283.33.
13. (c) £478.40 — Method: apply the percentage increase, then apply the percentage decrease to the new price. Working: after the increase, the laptop costs £520 × 1.15. Multiplying this result by 0.80 gives the final price, £478.40. Answer: £478.40. £494 comes from combining the two percentages into a single net change (15% − 20% = −5%) and applying it directly, £520 × 0.95 = £494, instead of applying the two changes one after the other. £416 comes from applying only the 20% decrease to the original price, £520 × 0.80 = £416, forgetting the increase entirely. £598 comes from applying only the 15% increase and stopping there, forgetting to apply the decrease at all.
14. (d) £7060 — A 6% decrease each year means the value becomes 100% − 6% = 94% of the previous year's value, and 94% = 0.94, so the multiplier is 0.94. Apply it once for each of the 3 years: £8500 × 0.94 = £7990 after 1 year, £7990 × 0.94 = £7510.60 after 2 years, £7510.60 × 0.94 = £7059.96 after 3 years, which rounds to £7060 to the nearest pound. (£6970 comes from using simple depreciation instead of compound, taking 6% of the original £8500 three times: £8500 − 3 × £510 = £6970. £7990 is the value after only 1 year, forgetting the remaining 2 years. £7511 is the value after only 2 years, £8500 × 0.94² = £7510.60, forgetting the third year.)
15. (c) £672 — Simple interest per year = 3% of £600 = £18. Over 4 years the interest is 18 × 4 = £72. Total in the account = £600 + £72 = £672. A student who gives just the interest, without adding it to the principal, writes £72. A student who adds only one year's interest instead of four gets £600 + £18 = £618. A student who wrongly compounds the interest each year gets 600 × 1.03⁴ = £675.31.
16. (c) 20% — Method: percentage increase = (increase ÷ original) × 100. Working: the increase is 54 − 45 = 9, and 9 ÷ 45 = 0.2, so the percentage increase is 0.2 × 100 = 20. Answer: 20%. The distractors: 9% comes from writing the actual increase as a percentage; 16.7% comes from dividing by the new value 54 instead of the original 45; 120% is the multiplier 1.2 written as a change rather than the change itself.
17. (a) 200 g — One quarter of 160 g is 40 g. Increasing the amount means adding this on: 160 + 40 = 200 g. Finding the increase, 1/4 of 160 = 40 g, but stopping there without adding it to the original amount leaves just 40 g. Using 4/5 instead of 5/4 as the scaling fraction, 160 × 4/5 = 128 g, actually decreases the amount rather than increasing it. Increasing by a half instead of a quarter, 160 + 80 = 240 g, uses the wrong fraction of 160.
18. (a) £3244.80 — A 4% increase each year means the value becomes 100% + 4% = 104% of the previous year's value, and 104% = 1.04, so the multiplier is 1.04. Multiply by 1.04 for each year: £3000 × 1.04 × 1.04 = £3244.80. (£3240.00 comes from using simple interest instead of compound interest: £3000 + 2 × (£3000 × 0.04) = £3240.00. £3120.00 is the value after only 1 year, £3000 × 1.04, forgetting to apply the second year's growth. £244.80 is the interest earned, £3244.80 − £3000, not the total value of the investment.)
19. (b) 10 — First find 1/4 of 80, which is 20, then find 1/2 of that: 20 ÷ 2 = 10. Adding the two fractions together instead of applying them one after the other, 1/2 + 1/4 = 3/4, and finding 3/4 of 80 gives 60. Finding 1/4 of 80 = 20 correctly but stopping before applying the second fraction leaves 20 as the final answer. Finding 1/2 of 80 = 40 first but forgetting to then find 1/4 of that leaves 40 as the final answer.
20. (d) £6705 — After the first year: £6400 × 1.08 = £6912. After the second year: £6912 × 0.97 = £6704.64, which rounds to £6705 (nearest pound). £6720 comes from treating the +8% and −3% changes as a single net +5% change applied to the original amount instead of applying each change in turn: £6400 × 1.05 = £6720. £6912 comes from applying only the first year's growth and stopping there, without applying the second year's fall. £7104 comes from adding the two percentages together as +11% and applying that to the original amount instead of applying each change to the correct starting amount in turn: £6400 × 1.11 = £7104.
21. (b) 7980 — After the first year: 8000 × 0.95 = 7600. After the second year: 7600 × 1.05 = 7980. 8000 comes from assuming a 5% decrease followed by a 5% increase returns exactly to the starting number — it does not, because the increase acts on the smaller, already-reduced number. 8400 comes from applying only the second year's 5% increase to the original number: 8000 × 1.05 = 8400. 7600 comes from applying only the first year's 5% decrease and stopping there, without applying the second year's increase.
22. (d) 24 km — Method: a fraction acts as an operator, so finding 8/12 of a distance means dividing by the denominator and multiplying by the numerator. Working: 36 ÷ 12 = 3, so one twelfth of the walk is 3 km, and eight twelfths is 3 × 8 = 24 km. Answer: 24 km. The distractors: 12 km comes from working out the part of the walk still left, the other four twelfths, instead of the part already completed; 288 km comes from multiplying by the numerator without dividing by the denominator, giving 36 × 8 = 288; 4.5 km comes from dividing by the numerator instead of multiplying by it, giving 36 ÷ 8 = 4.5.