💷 Percentages and compound interest

Answer key

1. (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.
2. (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.
3. (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.
4. (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%.
5. (c) 150% — Percentage = (180,000 ÷ 120,000) × 100 = 150%.
6. (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.
7. (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.)
8. (c) £2743.60 — Each year the balance is multiplied by 1.03. After the first year: 4000 × 1.03 = 4120. After the second year: 4120 × 1.03 = 4243.60, so that is what Leah takes out. She then spends £1500 of it, which leaves 4243.60 − 1500 = 2743.60. She has £2743.60 left.
9. (a) £18 — Method: the percentage acts as an operator on the bill, and 15% can be built from 10% and 5%, where 5% is half of 10%. Working: 10% of £120 is £120 ÷ 10 = £12, and 5% is half of that, £6, so the charge is £12 + £6 = £18. Answer: £18. The distractors: £8 comes from reading 15% as one fifteenth and working out £120 ÷ 15 = £8; £12 comes from finding 10% of the bill and stopping there; £138 comes from finding the charge correctly and then giving the new total, £120 + £18, rather than the charge the question asks for.
10. (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.
11. (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.
12. (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.
13. (d) £8262 — A fall of 15% is a multiplier of 0.85 and a fall of 10% is a multiplier of 0.9, and each multiplier acts on the value at the start of its own year. After year 1: 12000 × 0.85 = 10200. After year 2: 10200 × 0.9 = 9180. After year 3: 9180 × 0.9 = 8262. The value 3 years after the car was bought is £8262. Adding the percentages to make a single fall of 35% would be wrong, because the later falls are taken from smaller values.
14. (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.
15. (b) 460 — To increase by 15%, multiply by 1.15 (100% + 15%). 400 × 1.15 = 460. 60 comes from working out only the increase, 400 × 0.15 = 60, and forgetting to add it to the original number. 415 comes from adding 15 directly to 400 instead of 15% of 400. 340 comes from multiplying by 0.85, decreasing instead of increasing: 400 × 0.85 = 340.
16. (c) 21% — Method: an increase of 10% is a multiplier of 1.1, and two successive increases are found by multiplying the multipliers. Working: 1.1 × 1.1 = 1.21, so the rent is 121% of the original, which is an increase of 21%. Answer: 21%. The distractors: 20% comes from adding the two percentages, which ignores that the second 10% is taken of a larger amount; 121% is the multiplier written as the change rather than the change itself; 11% comes from slipping in the multiplication and getting 1.11 instead of 1.21.
17. (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.
18. (b) 80 — Method: the difference between 40% and 25% of the number is 15% of the number, and that difference is 12. Working: 15% of the number is 12, so 1% of the number is 12 ÷ 15 = 0.8, and the number is 0.8 × 100 = 80. Check: 40% of 80 is 32, 25% of 80 is 20, and 32 − 20 = 12. Answer: 80. The distractors: 30 comes from solving 40% of the number = 12; 48 comes from solving 25% of the number = 12; 15 is the percentage difference written as the answer.
19. (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.
20. (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.
21. (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.
22. (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.