💷 Percentages and compound interest

Answer key

1. (a) 75% — Method: to express one quantity as a percentage of another, divide the part by the whole and multiply by 100. Working: 18 ÷ 24 = 0.75, and 0.75 × 100 = 75. Answer: 75%. The distractors: 25% is the percentage she got wrong, 6 out of 24; 133% comes from dividing the whole by the part, 24 ÷ 18; 18% comes from writing the number of correct answers with a percent sign.
2. (a) £6 — 10% of £40 is £4, and 5% of £40 is half of that, £2. Adding these gives 15% of £40 = £4 + £2 = £6. Finding only the 10% part and stopping there gives £4. Finding only the 5% part and stopping there gives £2. Multiplying 40 by 15 without dividing by 100 gives £600, which treats the percentage as if it were a whole number multiplier.
3. (a) £150 — Value after year 1: £800 × 0.75 = £600. Value after year 2: £600 × 0.75 = £450. The loss during the second year alone is £600 − £450 = £150. £450 comes from giving the value remaining after 2 years, not the amount lost during the second year. £200 comes from working out the loss during the first year instead of the second: £800 − £600 = £200. £350 comes from working out the total loss over both years instead of just the second year's loss: £800 − £450 = £350.
4. (a) 35 — Method: 25% is 25/100, which cancels to 1/4, so finding 25% of an amount means dividing it by 4. Working: 25% = 25/100 = 1/4, and 140 ÷ 4 = 35. Answer: 35 pens. The distractors: 70 comes from halving instead of quartering, confusing 25% with 50%; 105 comes from working out the pens that are not red, which is 75% of 140, instead of the pens that are; 25 comes from ignoring the percent sign and reading the 25% as a count of 25 pens.
5. (a) £177.60 — Total raised = 240 × £1.85 = £444.00. The hospital receives 40% of this: £444.00 × 0.4 = £177.60. A candidate who works out the remaining 60% instead of the 40% given away gets £266.40. A candidate who forgets to find the percentage and gives the full total gets £444.00. A candidate who halves 40% by mistake and uses 20% gets £88.80.
6. (a) 20% — Method: percentage increase = increase ÷ original amount × 100. Working: the increase is 84 − 70 = 14 marks, and 14 ÷ 70 = 0.2, so 0.2 × 100 = 20. Answer: an increase of 20%. The distractors: 14% comes from quoting the 14 mark increase as though marks and per cent were the same thing; 17% comes from dividing the 14 by the new mean 84 instead of by the original 70, which gives 17% to the nearest per cent; 120% is the new mean written as a percentage of the old one, which is the whole of the new mean rather than the increase.
7. (d) 25% — Method: to convert a decimal to a percentage, multiply by 100. Working: 0.25 × 100 = 25. Answer: 25%. The distractors: 0.25% comes from writing a percent sign after the decimal without multiplying; 2.5% comes from multiplying by 10 instead of 100; 250% comes from multiplying by 1000.
8. (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.)
9. (d) 60 — Method: a percentage acts as an operator, so finding 20% of an amount means multiplying it by 20/100, which cancels to 1/5. Working: 20% = 20/100 = 1/5, and 300 ÷ 5 = 60. Answer: 60 seats. The distractors: 15 comes from reading 20% as one twentieth and working out 300 ÷ 20 = 15; 30 comes from finding 10% of 300 and stopping there instead of doubling it; 6 comes from converting 20% to 0.02 rather than 0.2, giving 0.02 × 300 = 6.
10. (c) 150% — Percentage = (180,000 ÷ 120,000) × 100 = 150%.
11. (c) 18 — 45 ÷ 5 = 9, and 2 × 9 = 18. A candidate who stops after finding one fifth gets 9. A candidate who uses 3/5 instead of 2/5 gets 27. A candidate who uses 4/5 instead of 2/5 gets 36.
12. (d) 30 — Method: 50% is one half, so 50% of a quantity is the quantity divided by 2. Working: 60 ÷ 2 = 30. Answer: 30. The distractors: 120 comes from multiplying by 2 instead of dividing; 3000 comes from multiplying by 50 without dividing by 100; 6 comes from finding 10% instead of 50%.
13. (c) £480.00 — To decrease by 20%, multiply by 0.80 (100% − 20%). £600 × 0.80 = £480.00. £120.00 comes from working out only the decrease (£600 × 0.20) and forgetting to subtract it from the original value. £580.00 comes from subtracting 20 directly instead of 20% of £600. £720.00 comes from multiplying by 1.20, adding the percentage instead of subtracting it.
14. (c) £80 — Method: a unit fraction acts as an operator, so finding 1/9 of a price means dividing that price by 9. Working: £720 ÷ 9 = £80. Answer: £80. The distractors: £6480 comes from multiplying by the denominator instead of dividing by it, giving £720 × 9 = £6480; £640 comes from working out what is left of the £720 once the case is paid for, £720 − £80, instead of the cost of the case itself; £72 comes from dividing by 10 instead of 9, treating one ninth as one tenth.
15. (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.)
16. (b) £45 — Since 2/3 of the amount is £30, one third is £30 ÷ 2 = £15, and the whole amount is three thirds: £15 × 3 = £45. Applying the fraction forwards to £30 instead of reversing it, £30 × 2/3 = £20, treats the given amount as the whole rather than as two thirds of it. Finding one third correctly as £15 but forgetting to multiply by 3 to get the whole amount leaves £15 as the final answer. Reading £30 as one third of the amount rather than as two thirds, and so multiplying straight by 3, gives £30 × 3 = £90.
17. (b) £72 — One fifth of £60 = £12. New price = £60 + £12 = £72. A candidate who gives the increase instead of the new price gets £12. A candidate who subtracts the increase instead of adding it gets £60 − £12 = £48. A candidate who uses 1/4 instead of 1/5 gets £60 + £15 = £75.
18. (b) 4% — Method: find the total interest earned, share it equally across the number of years to find one year's interest, then write it as a percentage of the amount invested. Working: total interest = £840 − £750 = £90, so one year's interest is £90 ÷ 3 = £30, and £30 as a percentage of £750 is (£30 ÷ £750) × 100 = 4%. Answer: 4%. 12% comes from treating the total interest of £90 as if it were earned in a single year, (£90 ÷ £750) × 100 = 12%, forgetting to divide by 3 years. 0.04% comes from finding the correct decimal, £30 ÷ £750 = 0.04, but forgetting to multiply by 100 to convert it into a percentage. 112% comes from writing the final amount, £840, as a percentage of the amount invested, £750, without first subtracting the £750 to find the interest alone.
19. (d) £20 — 1% of £250 = £2.50, so 8% = 8 × £2.50 = £20. A candidate who misplaces the decimal point and finds 0.8% instead gets £2. A candidate who confuses 8% with 80% gets £200. A candidate who rounds 8% up to the nearby 10% gets £25.
20. (a) 50 — Method: 25% is one quarter, so 25% of a quantity is the quantity divided by 4. Working: 200 ÷ 4 = 50. Answer: 50. The distractors: 25 comes from writing the percentage itself as the answer; 100 comes from halving, which is 50% not 25%; 800 comes from multiplying by 4 instead of dividing.
21. (a) £1,000 — Method: find the increase, then add it to the original price; the multiplier 1.25 does both steps at once. Working: 25% is one quarter, so 25% of £800 = £800 ÷ 4 = £200, and £800 + £200 = £1,000. Answer: £1,000. The distractors: £200 is the increase on its own, not the new price; £825 comes from adding £25 to £800, treating the 25% as £25; £600 comes from taking the 25% off the price instead of adding it on.
22. (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.