Commercial arithmetic: compound interest — KCSE Mathematics
KCSE Mathematics · 99 practice questions · 4 syllabus objectives
What You'll Learn
Key learning outcomes for this topic, aligned to the KNEC KCSE syllabus.
Define compound interest; apply the formula A = P(1 + R/100)ⁿ to calculate the final amount or compound interest
Compare the total amount accrued under simple and compound interest for the same principal, rate and time
Apply the compound interest formula to depreciation: A = P(1 – R/100)ⁿ; solve problems involving reducing value
Commercial arithmetic: compound interest
Sample Questions
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A vehicle valued at Ksh 500,000 depreciates at a rate of 15% per annum. Calculate its value after 3 years. (3 marks)
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A student deposits Ksh 10,000 in a bank account offering 6% annual compound interest. Determine the total amount in the account after 4 years. (4 marks)
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Calculate the total amount accrued from a principal of Ksh 20,000 at an annual compound interest rate of 5% over 3 years. (3 marks)
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A parent invests Ksh 20,000 in an educational fund that compounds interest at a rate of 8% per annum. Determine the compound interest earned after 2 years. (2 marks)
Why Practise Commercial arithmetic: compound interest?
KNEC Aligned
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