Growth decay and compound interest · Optional extension
L067 · Allow 10–15 minutes for learners ready to move on. Answers are available after an attempt.
Stretch
£1,000 grows 4% annually for three years. Find final value to the nearest penny.
Reveal a worked check after attempting
1000×1.04³=£1,124.86.
Deep challenge
A price rises 20% then falls 20%. Prove it does not return to the starting price.
Reveal a worked check after attempting
Multipliers 1.2×0.8=0.96; final price is 96% of original, 4% lower.