Reverse Compound Interest: Real-world Applications
Mathematics
Grade 8
12 questions
~24 mins
1 views0 downloads
About This Worksheet
A worksheet exploring the concept of reverse compound interest, focusing on real-world depreciation scenarios for Grade 8 students.
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Reverse Compound Interest: Real-world Applications
Subject: MathematicsGrade: Grade 8
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Untitled Worksheet
Grade Grade 8
A
Introduction
Review the key concept: Reverse compound interest involves finding the original amount before depreciation, using the formula:
Original Amount = Final Value / (1 - Rate of Depreciation)^Number of Periods.
Use this formula to solve the following questions.
B
Fluency & Practice
Answer these questions to reinforce your understanding of reverse compound interest calculations.
1.
An electronic device depreciates by 10% each year. If its current value is $540, what was its value 1 year ago? (Use reverse compound interest formula)
[2 marks]2.
A car's value after 3 years is $18,000, depreciating annually at 15%. Find its original value.
[2 marks]3.
The value of a machine is $4,050 after 2 years, depreciating at a rate of 5% annually. What was its initial value?
[2 marks]C
Problem Solving & Reasoning
Work through these multi-step problems carefully, explaining your reasoning.
1.
A laptop depreciates by 12% each year. After 4 years, its value is $1,200. Find its original purchase price.
[3 marks]2.
A vintage bicycle’s value 2 years ago was twice what it is now. If the current value is $600 and it depreciates at 20% annually, what was the value 2 years ago?
[3 marks]D
Real-world Applications
Apply the reverse compound interest concept to these real-world depreciation scenarios.
1.
A smartphone is worth $400 after 3 years of depreciation at 15% annually. What was its original purchase price?
[3 marks]2.
A factory machine is valued at $9,200 after 5 years, depreciating at 8% each year. Find its initial value.
[3 marks]E
Challenge & Extension
Tackle these more difficult questions to extend your understanding of reverse compound interest.
1.
A piece of land depreciates by 7% annually. Its value after 6 years is $65,000. Calculate its original value.
[4 marks]2.
An antique clock's value decreases by 5% each year. If its current worth is $2,300, what was its value 4 years ago?
[4 marks]F
Mixed Review
Solve these questions that combine various aspects of reverse compound interest.
1.
A camera depreciates at 9% per year. Its value now is $1,300. Find its original price.
[2 marks]2.
The value of a yacht after 7 years is $50,000, depreciating annually at 4%. What was its initial value?
[2 marks]G
Error Analysis
Review the following common mistake and identify the correction needed.
1.
A student calculated the original value as $700 when given a depreciated value of $630 after 3 years at 10%. What mistake did they make? Correct the calculation.
[3 marks]Quick Actions
What is Remix?
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