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0580/33 May/Jun 2022, Question 9: Compound Interest

Cambridge IGCSE Mathematics 0580 · Paper 33 (Core) · Calculator · 11 marks

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The question, in short

Ahmed's company earnings: calculate his yearly pay with a profit percentage, a profit percentage increase, a simplified earnings ratio, a currency conversion, and compound interest on a loan.

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

Part (ai) · 2 marks

Find Ahmed's yearly earnings from $56 000 plus 3% of a $320 600 profit.

  1. 13% of 320 600 = 0.03 × 320 600 = 9618
  2. 2Earnings = 56 000 + 9618 = $65 618

Answer65618

Part (aii) · 2 marks

Find the percentage increase in profit from $320 600 to $347 851.

  1. 1Increase = 347 851 − 320 600 = 27 251
  2. 2Percentage increase = 27 251 ÷ 320 600 × 100 = 8.5%

Answer8.5

Part (b) · 2 marks

Write the ratio of Budi's $17 000, Citra's $13 600 and Dian's $6800 earnings in simplest form.

  1. 117 000 : 13 600 : 6800
  2. 2Divide by 3400: 5 : 4 : 2

Answer5 : 4 : 2

Part (c) · 2 marks

Convert 7560 yuan to dollars at $1 = 7.06 yuan, rounded to the nearest dollar.

  1. 17560 ÷ 7.06 = 1070.82…
  2. 2≈ $1071

Answer1071

Part (d) · 3 marks

Find the compound interest on $8000 borrowed for 3 years at 5% per year.

  1. 1Amount = 8000 × (1 + 5/100)³ = 8000 × 1.157625 = 9261
  2. 2Interest = 9261 − 8000 = $1261

Answer1261

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