💷 Percentages and compound interest

Answer key

1. (a) 1/4 — The empty part of the tank is 80 − 60 = 20 litres. As a fraction of the full capacity, this is 20/80, which simplifies to 1/4. Finding the fraction of the tank that is FULL instead of empty, 60/80, simplifies to 3/4 — the wrong quantity for the question asked. Writing the empty amount over the amount remaining instead of over the full capacity, 20/60, simplifies to 1/3. Comparing the empty amount to 100 instead of to the tank's actual capacity of 80, 20/100, gives 1/5.
2. (b) £2205.00 — With compound interest each year's interest is worked out on the value at the start of that year, so a 5% rise is a multiplier of 1.05 applied once per year. After the first year: 2000 × 1.05 = 2100. After the second year: 2100 × 1.05 = 2205. The question asks for the value of the investment, not for the interest earned, so the answer is £2205.00.
3. (d) £70 — Method: the discount is a percentage of the original price only, so work it out, subtract it, and add the fixed delivery charge afterwards. Working: 25% of £80 is £80 ÷ 4 = £20, so the discounted price is £80 − £20 = £60, and the total is £60 + £10 = £70. Answer: £70. The distractors: £60 comes from working out the discounted price and stopping there, leaving the delivery charge out of the total; £65 comes from taking £25 off the price instead of 25% of it, giving £80 − £25 = £55 and then £55 + £10 = £65; £67.50 comes from adding the delivery charge before the discount and reducing the whole amount, giving 75% of £90 = £67.50.
4. (a) 2978 — A rise of 6% is a multiplier of 1.06, applied once for each year. After year 1: 2500 × 1.06 = 2650. After year 2: 2650 × 1.06 = 2809. After year 3: 2809 × 1.06 = 2977.54, which is 2978 to the nearest whole number. Multiplying by 1.18 in one go would be wrong, because the second and third years grow from larger numbers than the first.
5. (a) 1260 — To increase by 5%, multiply by 1.05 (100% + 5%). 1200 × 1.05 = 1260. 60 comes from working out only the increase (1200 × 0.05) and forgetting to add it to the original population. 1205 comes from adding 5 directly to 1200 instead of 5% of 1200. 1800 comes from multiplying by 1.5, using 50% instead of 5%.
6. (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.
7. (b) £52,000 — Method: convert 130% to a decimal multiplier and multiply it by last year's profit. Working: 130% = 1.3, so this year's profit is £40,000 × 1.3 = £52,000. Answer: £52,000. £12,000 comes from using only the extra 30% (130% − 100%) and forgetting to include the original 100%, £40,000 × 0.3 = £12,000. £40,130 comes from simply adding 130 onto £40,000, treating the percentage as an amount of money rather than a multiplier. £5,200 comes from misreading 130% as 13%, giving £40,000 × 0.13 = £5,200.
8. (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.
9. (c) £338.69 — To increase by 12% each year, multiply by 1.12 twice. £270 × 1.12 × 1.12 = £338.688, which rounds to £338.69 (nearest penny, since the third decimal place is 8). £334.80 comes from treating the two 12% increases as a single flat 24% increase applied once instead of compounding: £270 × 1.24 = £334.80. £302.40 comes from applying the 12% increase only once, for 1 year instead of 2: £270 × 1.12 = £302.40. £338.68 comes from rounding £338.688 down to the nearest penny instead of up.
10. (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.)
11. (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.
12. (d) 36 — To find 3/8 of 96, divide by the denominator and multiply by the numerator: 96 ÷ 8 = 12, and 12 × 3 = 36. Dividing 96 by the numerator instead of the denominator, 96 ÷ 3 = 32, uses the wrong part of the fraction. Using 3/4 instead of 3/8, perhaps misreading the denominator, gives 96 × 3/4 = 72. Finding 96 ÷ 8 = 12 correctly but forgetting to multiply by the numerator 3 leaves just 12 as the final answer.
13. (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.
14. (d) 25% — Method: percentage decrease = decrease ÷ original amount × 100. Working: the reduction is £60 − £45 = £15, and 15 ÷ 60 = 0.25, so 0.25 × 100 = 25%. Answer: 25%. The distractors: 15% comes from quoting the £15 reduction as though pounds and per cent were the same thing; 33% comes from dividing the £15 by the new price £45 instead of by the original £60, which gives 33% to the nearest per cent; 75% is the new price written as a percentage of the old one, which is what is still paid rather than what has been taken off.
15. (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.
16. (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.
17. (c) £624.32 — A 4% rise is a multiplier of 1.04, applied once each year. After year 1: 5000 × 1.04 = 5200. After year 2: 5200 × 1.04 = 5408. After year 3: 5408 × 1.04 = 5624.32. The question asks for the interest, not the value of the account, so take away the amount invested at the start: 5624.32 − 5000 = 624.32. The total interest earned is £624.32.
18. (b) 30 — Method: 12% of an amount is 12/100 of it, so find 1% by dividing by 100 and then multiply by 12. Working: 1% of 250 is 250 ÷ 100 = 2.5, and 12% is 2.5 × 12 = 30. Answer: 30 seats. The distractors: 3 comes from writing 12% as 0.012 instead of 0.12, giving 0.012 × 250 = 3; 25 comes from finding 10% of the seats and stopping there; 24 comes from counting 12 seats for each whole hundred, 12 + 12 = 24, and ignoring the remaining 50 seats.
19. (c) £840 — Method: find the total amount raised using the reverse percentage, then subtract the entry fees to find the donations. Working: £1,260 is 60% of the total, so the total is £1,260 ÷ 0.6, and subtracting the entry fees from this total leaves £840 raised through donations. Answer: £840. £2,100 comes from correctly finding the total amount raised but then forgetting to subtract the entry fees, giving the total instead of the donations alone. £504 comes from working out 40% of the entry fees themselves, £1,260 × 0.4 = £504, instead of first finding the total amount raised. £1,890 comes from treating £1,260 as 40% of the total instead of 60%, dividing by 0.4 to get a total of £3,150, and then subtracting the entry fees from that incorrect total.
20. (c) 150 m — Method: a fraction acts as an operator, so finding 3/7 of a length means dividing by the denominator and multiplying by the numerator. Working: 350 ÷ 7 = 50, so one seventh of the route is 50 m, and three sevenths is 50 × 3 = 150 m. Answer: 150 m. The distractors: 50 m comes from finding one seventh and stopping there instead of multiplying by 3; 1050 m comes from multiplying by the numerator without dividing by the denominator, giving 350 × 3 = 1050; 200 m comes from working out the stretch of the route the footpath does not run alongside, which is 4/7 of 350 m, instead of the stretch it does.
21. (c) 150 — Since 90 students represent 3 of the 5 equal parts, one part is 90 ÷ 3 = 30, and the whole year group is five parts: 30 × 5 = 150. Applying the fraction forwards to 90 instead of reversing it, 90 × 3/5 = 54, treats the given number as the whole rather than as three fifths of it. Finding one part correctly as 30 but forgetting to scale up to the whole year group leaves 30 as the final answer. Treating 90 as the whole year group and adding on 2/5 of 90 for the students who do not walk, 90 + (90 × 2/5) = 126, applies the missing fraction to the wrong base amount.
22. (d) 75% — Method: change a fraction to a percentage by dividing the numerator by the denominator and multiplying by 100. Working: 3 ÷ 4 = 0.75, and 0.75 × 100 = 75. Answer: 75%. The distractors: 34% comes from reading the digits 3 and 4 straight off as a percentage; 0.75% comes from dividing but forgetting to multiply by 100; 133% comes from inverting the fraction and working out 4 ÷ 3 instead.