Edexcel GCSE Mathematics (Linear) - 1MA0 - Compound Interest and Depreciation - Practice Questions

Sep 5, 2026

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Edexcel GCSE Mathematics (Linear) 1MA0 focuses on compound interest and depreciation through 11 calculation questions. Learners apply compound growth and percentage depreciation to savings accounts, investments, and vehicle or van values, including finding final amounts and working backwards for the number of years. The paper includes information on required tools, time management guidance, and marks allocated per question, with emphasis on clear written communication for starred items.

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Reading Time20 min

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Compound interest and depreciation questions

83 # Edexcel GCSE Mathematics (Linear)-1MA0 COMPOUND INTEREST AND DEPRECIATION Itens included with question papersNil Materials required for examinationRuler graduated in centimetres andmillimetres,protractor,compasses,pen,HB pencil,eraser.Tracing paper may be used. # Instructions Use black ink or ball-point pen. Fill in the boxes at the top of this page with your name,centre number and candidate number.Answer all questions. Answer the questions in the spaces provided-there may be more space than you need.Calculators may be used. ## Information The marks for each question are shown in brackets -use this as a guide as to how much time tospend on each question. Questions labelled with an asterisk(*)are ones where the quality of your written communicationwillbe assessed-you should take particular care on these questions with your spelling,punctuationand grammar,as well as the clarity of expression. ## Advice Read each question carefully before you start to answer it.Keep an eye on the time.Try to answer every question.Check your answers if you have time at the end. 1. Toby invested £4500 for 2 years in a savings account.He was paid 4%per annum compound interest. How much did Toby have in his savings account after 2 years? 4S00×1.04²E4867.20 f.…48672…… (Total 3 marks) 2.The value of a car depreciates by 35%each year.At the end of 2007 the value of the car was £5460Work out the value of the car at the end of 2006 Eacn yecr =E5460Vatue =S460÷0.6S840O 3. Mario invests f2000 for 3 years at 5%per annum compound interest.Calculate the value of the investment at the end of 3 years. f..231S.25……… (Total3 marks) 4.Derek invests f154500 for 2 years at 4%per year compound interest. Work out the value of the investment at the end of 2 years. 154SO0×1.O4²=Li6+i0.20 £.b3107.2 (3) (Total3 marks) 5. Henry invests f4500 at a compound interest rate of 5%per annum. At the end of n complete years the investment has grown to £5469.78. Find the value of n. i.o53=j.1S+6259三i.215S66..1.0Sn= 5469,78÷4So04So0×1.os^=5469.78 i.054=1.215SO6 1.0S⁵=1.276281.· n=4 (Total 2 marks) 6.A company bought a van that had a value of £12000Each year the value of the van depreciates by 25%. Work out the value of the van at the end of three years. 12000×0.s³= ES062,SO 7. Bill invests £500 on 1st January 2004 at a compound interest rate of R%perannum. The value,fV,of this investment after n years is given by the formula V=500×(1.045) (a)Write down the value of R. i,04S=i04.So R=…4.5! … (1) (b)Use your calculator to find the value of Bill's investment after 20 years. V=S₀O×1.04s²0 (2) (Total 3 marks) 8.Gwen bought a new car. Each year,the value of her car depreciated by 9%. Calculate the number of years after which the value of her car was 47%ofits value when new. Each Heoc 942020.qi²=05i6+...O.91=c.5C18,..O.914=0.685+(÷√)O,43=0.9n○.43V= V×0.91^ SyecrS (Total 3 marks) 9.Liam invests £6200 for 3 years in a savings account.He gets 2.5%per annum compound interest. How much money will Liam have in his savings account at the end of 3 years? = [G676.+2G2C0×1025³= L666.3218 £…b 632 … ……… … (Total 3 marks) 10.Toby invested £4500 for 2 years in a savings account.He was paid 4%per annum compound interest. (a) How much did Toby have in his savings account after 2 years? f.486 … (3) Jaspir invested £2400 for n years in a savings account.He was paid 7.5%per annum compound interest. At the end of the n years he had £3445.51 in the savings account. (b) Work out the value of n. 240○×1.075"=3445.51 1.0+5n=3445.Si÷2400 1.052=1.435629.. 1.0S³=1.24229... 1.0S⁴=1.33546. 1.551.53332. …. ………… (2) *11 Viv wants to invest f2000 for 2 years in the same bank. | The Friendly Bank
Compound Interest
0.5%for each extra year | | --- | The International Bank Compound In

FAQs

What topics are assessed in this Edexcel GCSE paper?

The paper assesses compound interest on savings or investments and depreciation of assets such as cars and vans, using percentage growth/decline calculations.

What equipment is required for the examination?

You need a ruler (cm and mm), protractor, compasses, pen, HB pencil, and an eraser; tracing paper may be used and calculators may be used.

How are answers expected to be presented?

Use black ink or ball-point pen, write answers in the spaces provided, and for starred questions focus on spelling, punctuation, grammar, and clarity of expression.

Sep 5, 2026

Upload by James