## IGCSE MATHEMATICS 0580/42/O/N/20 Q3

3 (a) Beth invests $2000 at a rate of 2% per year compound interest.

(i) Calculate the value of this investment at the end of 5 years.

(ii) Calculate the overall percentage increase in the value of Beth’s investment at the end of 5 years.

(iii) Calculate the minimum number of complete years it takes for the value of Beth’s investment to increase from $2000 to more than $2500.

(b) The population of a village decreases exponentially at a rate of 4% each year. The population is now 255. Calculate the population 16 years ago.

## Answer ( 1 )