Reverse Compound Interest: Mixed Review

Mathematics
GCSE Foundation
13 questions
~26 mins
1 views0 downloads

About This Worksheet

A worksheet focusing on reverse compound interest calculations related to depreciation, designed for GCSE Foundation students to develop procedural and problem-solving skills.

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Reverse Compound Interest: Mixed Review

Subject: MathematicsGrade: GCSE Foundation
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Untitled Worksheet

Grade GCSE Foundation
A

Fluency & Practice

Answer all questions. Show your working in the grid spaces provided.
1.
A car depreciates by 15% each year. If its current value is £12,750, what was its value two years ago? (Use reverse compound interest formula)
[3 marks]
2.
A machine's value after 3 years is £5600, depreciating annually at a rate of 10%. What was its original value?
[3 marks]
3.
A laptop is worth £900 after 2 years of depreciation at a rate of 20% per year. Find its initial value.
[3 marks]
4.
If a vehicle was worth £20,000 five years ago and has depreciated at a constant rate compounded annually, what is its value now? Assume the depreciation rate is 12% per year.
[4 marks]
B

Problem Solving & Reasoning

Answer all questions in detail, explaining your reasoning where appropriate.
1.
A vintage bicycle was worth £400 ten years ago. It has depreciated at a rate of 8% per year compounded annually. What is its current value? Show your working.
[4 marks]
2.
A smartphone was originally purchased for £900. After 3 years of depreciation at 25% per year, what is its current value? If you wanted to buy a similar phone now, what price should you expect to pay?
[4 marks]
C

Real-world Applications

Solve these contextual problems involving depreciation.
1.
A company owns machinery worth £50,000. It depreciates by 10% each year. How much is the machinery worth after 4 years? If the company wants to replace the machinery when it drops below £30,000, after how many years should they plan to replace it?
[4 marks]
D

Challenge & Extension

Attempt these more advanced problems to extend your understanding.
1.
A rare coin was valued at £500 ten years ago. It has appreciated at a rate of 5% annually. What is its current value? (Treat appreciation similar to reverse depreciation)
[3 marks]
2.
A factory's equipment was worth £250,000 five years ago. If it has depreciated by 15% per year compounded annually, what is its current value? How much more is needed to replace it now if the replacement cost is £300,000?
[4 marks]
E

Mixed Review

Answer these questions to review key concepts.
1.
A piece of equipment valued at £800 depreciates at 12% per year. What was its value 2 years ago?
[3 marks]
2.
If a vintage car was worth £10,000 five years ago and depreciated at a rate of 20% annually, what is its current value? Show your working.
[4 marks]
F

Error Analysis

Review these common mistakes and identify what is wrong or correct the errors.
1.
A student calculated that the value of an item 3 years ago was £15,000 after applying a depreciation rate of 10%. They used the formula: Value = Present Value ÷ (1 - r)^n. Is this correct? If not, what is the mistake?
[2 marks]
2.
A student mistakenly increased the value by 10% instead of decreasing it for depreciation. What is the common error here and how should it be corrected?
[2 marks]

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Create a new worksheet based on this one. Change the grade level, topic, number of questions, or difficulty - then generate a fresh version.

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Details

Created
1/1/2026
Updated
1/1/2026
Type
worksheet