💷 Percentages and compound interest

Answer key

1. (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.
2. (b) 63 — 10% of 180 = 18, so 5% = 9. 35% = (3 × 18) + 9 = 54 + 9 = 63. A candidate who uses 25% instead of 35% gets 45. A candidate who doubles 35% to get 70% by mistake gets 126. A candidate who subtracts 35 from 180 instead of finding a percentage gets 145.
3. (d) 3200 × 0.88³ — A fall of 12% leaves 88% of the value, because 100 − 12 = 88, and 88% written as a decimal multiplier is 0.88. Decay repeats that multiplier once for each year, so over 3 years it is applied three times: 0.88 × 0.88 × 0.88, which is written 0.88³. The calculation is therefore 3200 × 0.88³. Adding the percentages to make a single fall of 36% would be wrong, because each year's fall is taken from a smaller value than the year before.
4. (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.
5. (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.
6. (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.)
7. (c) a decrease of 25% — Method: use multipliers. An increase of 50% is × 1.5 and a decrease of 50% is × 0.5. Working: 1.5 × 0.5 = 0.75, so the final price is 75% of the original. Answer: a decrease of 25%. The distractors: no change comes from assuming +50% and −50% cancel; a decrease of 50% comes from applying only the second change; an increase of 25% has the direction wrong.
8. (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.
9. (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.
10. (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.
11. (c) £136 — 5% interest each year means the value becomes 100% + 5% = 105% of the previous year's value, and 105% = 1.05, so the multiplier is 1.05. Account A: £3200 × 1.05 × 1.05 = £3528. Account B (simple interest): £3200 + 2 × (£3200 × 0.03) = £3392. The difference is £3528 − £3392 = £136. (£128 comes from working out Account A with simple interest too, instead of compound: £3200 + 2 × (£3200 × 0.05) = £3520, then £3520 − £3392 = £128. £3528 is the value of Account A on its own, not the difference between the two accounts. £3392 is the value of Account B on its own, not the difference.)
12. (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.
13. (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.
14. (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.
15. (d) £5.40 — Method: work out the reduced price at each shop separately, then subtract the smaller from the larger. Working: Shop A's reduced price is £45 × 0.8 = £36, and Shop B's reduced price is £34 × 0.9 = £30.60, so the difference is £36 − £30.60 = £5.40. Answer: £5.40. £11.00 comes from comparing the two ORIGINAL prices, £45 − £34, without applying either shop's reduction at all. £1.60 comes from finding Shop A's reduced price correctly, £36, but then subtracting Shop B's original (unreduced) price of £34 instead of its reduced price. £66.60 comes from adding the two reduced prices together, £36 + £30.60, instead of subtracting them.
16. (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.
17. (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.
18. (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.
19. (a) £14224 — Value after 2 years: £15000 × 1.04 × 1.04 = £16224. Money left after buying the trailer: £16224 − £2000 = £14224. £14200 comes from treating the two 4% increases as a single flat 8% increase applied once instead of compounding: £15000 × 1.08 = £16200, and £16200 − £2000 = £14200. £13600 comes from applying the 4% increase only once, for 1 year instead of 2: £15000 × 1.04 = £15600, and £15600 − £2000 = £13600. £18224 comes from adding the £2000 instead of subtracting it: £16224 + £2000 = £18224.
20. (d) £33.00 — The profit is 3/8 of £24 = (£24 ÷ 8) × 3 = £3 × 3 = £9.00. Selling price = £24 + £9.00 = £33.00. A candidate who gives the profit instead of the selling price gets £9.00. A candidate who subtracts the profit instead of adding it gets £24 − £9 = £15.00. A candidate who works out one eighth of £24 and adds that on, forgetting to multiply by the numerator 3, gets £24 + £3 = £27.00.
21. (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.
22. (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.