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0580/32 Feb/Mar 2025, Question 18: Compound Interest

Cambridge IGCSE Mathematics 0580 · Paper 32 (Core) · Calculator · 5 marks

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The question, in short

Calculate compound interest growth on $12 000 over 3 years at 8% per year, rounded to the nearest $10, and find the percentage increase when $560 grows to $630 in one year.

Summarised in our own words. Use the official paper for the exact wording and any diagrams.

Part (a) · 3 marks

Find the value of Clare's $12 000 investment after 3 years at 8% per year compound interest, correct to the nearest $10.

  1. 1Value = 12 000 × (1 + 8/100)³
  2. 2= 12 000 × 1.08³ = 15 116.54…
  3. 3≈ $15 120 (nearest $10)

Answer15 120

Part (b) · 2 marks

Calculate the percentage increase when Zak's $560 investment is worth $630 after one year.

  1. 1Increase = 630 − 560 = 70
  2. 2Percentage increase = 70/560 × 100
  3. 3= 12.5%

Answer12.5

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