0580/43 May/Jun 2025, Question 14: Compound Interest
Cambridge IGCSE Mathematics 0580 · Paper 43 (Extended) · Calculator · 3 marks
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The question, in short
Jess invests $1400 at r% compound interest per year; after 4 years the investment is worth $1523.15. Find the value of r.
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Solution · 3 marks
- 11400 × (1 + r/100)⁴ = 1523.15
- 2(1 + r/100)⁴ = 1523.15 ÷ 1400 = 1.08796…
- 31 + r/100 = ⁴√1.08796… = 1.021300…
- 4r = 2.130…
Answer2.128 to 2.130…
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