0580/42 May/Jun 2026, Question 7: Compound interest
Cambridge IGCSE Mathematics 0580 · Paper 42 (Extended) · Calculator · 5 marks
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The question, in short
(a) $2500 earns 4.4% compound interest a year; find its value after 6 years. (b) $4500 grows to $5420 in 5 years at r% compound interest a year; find r.
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Part (a) · 2 marks
Value of $2500 after 6 years at 4.4%.
- 1Value = 2500 × 1.044⁶
- 2= 2500 × 1.29480…
- 3= $3237.00
Answer3240 or 3237[.00…]
Part (b) · 3 marks
Find the rate r.
- 14500 × (1 + r/100)⁵ = 5420
- 2(1 + r/100)⁵ = 5420 ÷ 4500 = 1.20444…
- 31 + r/100 = ⁵√1.20444… = 1.03790…
- 4r = 0.03790… × 100 = 3.79
Answer3.79 or 3.790…
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