New Century Mathematics (Second Edition)

S3 Question Bank
3A Chapter 3 Percentages (II)

Level 1

<code=10116020>
<bk=3A><ch=3><ex=3A><type=L1><mark=2><title=10116020><content>
$12 000 is deposited in a bank at an interest rate of 2% p.a. for 3 years. Find the simple interest
received.
(2 marks)
Solution:
Simple interest received
=$ 1M
= $720 1A
<end>

<code=10116025>
<bk=3A><ch=3><ex=3A><type=L1><mark=3><title=10116025><content>
Joanne deposits $54 000 in a bank at an interest rate of 5% p.a. Find the time required to receive
simple interest of $16 200.
(3 marks)
Solution:
Let T years be the time required.
16 200 = 1M+1A
16 200 = 2 700T
T=6
∴ The time required is 6 years. 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.1

<code=10116085>
<bk=3A><ch=3><ex=3A><type=L1><mark=3><title=10116085><content>
Cindy borrows $126 000 from a bank. If she has to pay $60 480 as simple interest after 8 years,
find the interest rate per annum.
(3 marks)
Solution:
Let R% be the interest rate per annum.
60 480 = 1M+1A
60 480 =
60 480 = 10 080R
R=6
∴ The interest rate per annum is 6%. 1A
<end>

<code=10116086>
<bk=3A><ch=3><ex=3A><type=L1><mark=3><title=10116086><content>
Sammy deposits a sum of money in a bank at a simple interest rate of 3.5% p.a. If the amount
received after 2 years is $103 790, find the principal.
(3 marks)
Solution:
Let $P be the principal.
103 790 = P(1 + 3.5%  2) 1M+1A
103 790 = 1.07P
P = 97 000
∴ The principal is $97 000. 1A
<end>

<code=10116196>
<bk=3A><ch=3><ex=3A><type=L1><mark=3><title=10116196><content>
Dorothy deposits a sum of money in a bank at an interest rate of 3% p.a. If the simple interest
received after 8 months is $2 100, find the sum of money deposited.
(3 marks)
Solution:
Let $P be the sum of money deposited.
2 100 = 1M+1A
2 100 = 0.02P
P = 105 000
∴ The sum of money deposited is $105 000. 1A

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.2

<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.3

<code=10116204>
<bk=3A><ch=3><ex=3A><type=L1><mark=3><title=10116204><content>
Richard deposits $400 000 in a bank at a simple interest rate of R% p.a. If the amount received
after 9 months is $409 600, find the value of R.
(3 marks)
Solution:

409 600 = 400 000 1M+1A

1.024 = 1 +

0.024 =
R = 3.2 1A
<end>

<code=10116264>
<bk=3A><ch=3><ex=3A><type=L1><mark=3><title=10116264><content>
Thomas borrows $18 000 from a finance company. If the simple interest paid by Thomas after 8
years is equal to the principal, find the interest rate per annum.
(3 marks)
Solution:
Let r% be the interest rate per annum.
18 000 = 18 000  r%  8 1M+1A
1=
r = 12.5
∴ The interest rate per annum is 12.5%. 1A
<end>

<code=10116266>
<bk=3A><ch=3><ex=3A><type=L1><mark=3><title=10116266><content>
Ben deposits $3 500 000 in a bank at an interest rate of R% p.a. If the interest rate per annum
doubles, Ben will receive $140 000 as simple interest after 2 years. Find the value of R.
(3 marks)
Solution:
140 000 = 1M+1A
140 000 =
140 000 = 140 000R
R=1 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.4

<code=10116281>
<bk=3A><ch=3><ex=3B><type=L1><mark=4><title=10116281><content>
$3 000 is deposited in a bank at an interest rate of 2% p.a. compounded yearly. Find the amount
and the compound interest received after 6 years.
(Give the answers correct to the nearest $10.)
(4 marks)
Solution:
Amount = $3 000  (1 + 2%)6 1M
= $3 380, cor. to the nearest $10 3 378.5 1A
Compound interest = $(3 378.5 – 3 000) 1M
= $380, cor. to the nearest $10 1A
<end>

<code=10116356>
<bk=3A><ch=3><ex=3B><type=L1><mark=3><title=10116356><content>
Mr Lee deposits $P in a bank at an interest rate of 7% p.a. compounded yearly. If the amount
received after 5 years is $8 780, find the value of P, correct to the nearest integer.
(3 marks)
Solution:
8 780 = P(1 + 7%)5 1M+1A

P=

= 6 260, cor. to the nearest integer 1A

<end>

<code=10116368>
<bk=3A><ch=3><ex=3B><type=L1><mark=3><title=10116368><content>
Cathy borrows a sum of money from a bank at an interest rate of 12% p.a. compounded yearly. If
she has to pay interest of $7 800 after 4 years, how much is the sum of money borrowed?
(Give the answer correct to the nearest dollar.)
(3 marks)
Solution:
Let $P be the sum of money borrowed.
7 800 = P[(1 + 12%)4 – 1] 1M+1A

P=

= 13 600, cor. to the nearest integer

∴ The sum of money borrowed is $13 600. 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.5

<code=10116371>
<bk=3A><ch=3><ex=3B><type=L1><mark=4><title=10116371><content>
$450 000 is deposited in a bank at an interest rate of 3.2% p.a. for 8 years. Find the difference
between the interests calculated on the bases of simple interest and compound interest
(compounded yearly).
(Give the answer correct to the nearest dollar.)
(4 marks)
Solution:
Simple interest = $450 000  3.2%  8 1M
= $115 200
Compound interest = $450 000  [(1 + 3.2%)8 – 1] 1M
= $128 962.04, cor. to the nearest $0.01
The required difference = $(128 962.04 – 115 200) 1M
= $13 762, cor. to the nearest dollar 1A
<end>

<code=10116396>
<bk=3A><ch=3><ex=3B><type=L1><mark=6><title=10116396><content>
Erica deposits $20 000 in a bank at an interest rate of 9% p.a. for 10 years. Find the amount
received if the interest is compounded
(a) yearly,
(b) monthly.
(Give the answers correct to the nearest dollar.)
(6 marks)
Solution:
(a) Amount
= $20 000  (1 + 9%)10 1M
= $47 347, cor. to the nearest dollar 1A

(b) Interest rate per month = = 0.75% 1A

Taking a month as a period,
number of periods in 10 years = 10  12 = 120 1A
Amount
= $20 000  (1 + 0.75%)120 1M
= $49 027, cor. to the nearest dollar 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.6

<code=10116409>
<bk=3A><ch=3><ex=3B><type=L1><mark=4><title=10116409><content>
David borrows $5 000 from a bank at an interest rate of 7.8% p.a. compounded monthly. Find the
amount he should repay after 3 years.
(Give the answer correct to the nearest dollar.)
(4 marks)
Solution:

Interest rate per month = = 0.65% 1A

Taking a month as a period,

number of periods in 3 years = 3  12 = 36 1A
Amount = $5 000  (1 + 0.65%)36 1M
= $6 313, cor. to the nearest dollar 1A
<end>

<code=10116429>
<bk=3A><ch=3><ex=3B><type=L1><mark=4><title=10116429><content>
Alex takes out a loan of $35 000 from a bank at an interest rate of 2.1% p.a. compounded
quarterly. Find the interest he will pay after 6 years.
(Give the answer correct to the nearest dollar.)
(4 marks)
Solution:

Interest rate per quarter = = 1A

Taking a quarter as a period,

number of periods in 6 years = 6  4 = 24 1A
Interest paid = $35 000  [(1 + 0.525%)24 – 1] 1M
= $4 687, cor. to the nearest dollar 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.7

<code=10116470>
<bk=3A><ch=3><ex=3B><type=L1><mark=6><title=10116470><content>
Gary deposits $60 000 in a bank at an interest rate of 4% p.a. compounded every two months.
When the amount received is more than $75 000, a bonus will be paid by the bank. Will Gary get
the bonus 5 years later? Explain your answer.
(6 marks)
Solution:

Interest rate for 2 months = = 1A

Taking 2 months as a period,

number of periods in 5 years = 5  6 = 30 1A

Amount = 1M

= $73 235.54, cor. to the nearest $0.01 1A

∵ $73 235.54 < $75 000 1M
∴ Gary will not get the bonus 5 years later. 1A
<end>

<code=10116496>
<bk=3A><ch=3><ex=3C><type=L1><mark=2><title=10116496><content>
There are 4 000 kangaroos in a preservation area now. If the number of kangaroos in the area
increases steadily at a rate of 10% per year, find the number of kangaroos after 3 years.
(2 marks)
Solution:
Number of kangaroos after 3 years
= 4 000  (1 + 10%)3 1M
= 5 324 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.8

<code=10116505>
<bk=3A><ch=3><ex=3C><type=L1><mark=3><title=10116505><content>
A tanker is leaking oil to the sea. The oil covers an area of 8.43 km2 now. If the area covered by the
oil increases by 6% every 10 minutes, what is the area covered by the oil after 2 hours?
(Give the answer correct to the nearest 0.01 km2.)
(3 marks)
Solution:
Taking 10 minutes as a period,
number of periods in 2 hours = = 12 1A
Area covered by the oil after 2 hours
= 8.43  (1 + 6%)12 km2 1M
= 16.96 km2, cor. to the nearest 0.01 km2 1A
<end>

<code=10116507>
<bk=3A><ch=3><ex=3C><type=L1><mark=4><title=10116507><content>
David’s present height is 120 cm. He wants to join a basketball team whose minimum height
requirement is 155 cm. If his height increases at a steady rate of 7.5% per year, can he join the
basketball team after 4 years? Explain your answer.
(4 marks)
Solution:
David’s height after 4 years
= 120  (1 + 7.5%)4 cm 1M
= 160.26 cm, cor. to the nearest 0.01 cm 1A
∵ 160.26 cm > 155 cm 1M
∴ He can join the basketball team after 4 years. 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.9

<code=10116534>
<bk=3A><ch=3><ex=3C><type=L1><mark=3><title=10116534><content>
In a city, the number of newborn babies increases at a constant rate of 2.4% per year. If the number
of newborn babies is 45 000 this year, find the number of newborn babies in the city 8 years ago,
correct to the nearest integer.
(3 marks)
Solution:
Let n be the number of newborn babies in the city 8 years ago.
n(1 + 2.4%)8 = 45 000 1M+1A

n=

= 37 223, cor. to the nearest integer

∴ The number of newborn babies in the city 8 years ago was 37 223. 1A
<end>

<code=10116535>
<bk=3A><ch=3><ex=3D><type=L1><mark=2><title=10116535><content>
The present value of a wallet is $1 800. If its value depreciates by 10% per year, what will the
value of the wallet be after 6 years?
(Give the answer correct to the nearest dollar.)
(2 marks)
Solution:
Value of the wallet after 6 years = $1 800  (1 – 10%)6 1M
= $957, cor. to the nearest dollar 1A
<end>

<code=10116570>
<bk=3A><ch=3><ex=3D><type=L1><mark=3><title=10116570><content>
After the rise in the speeding fine at the beginning of this year, the number of car accidents
decreases at a steady rate of 3.2% per month. There are 4 250 car accidents in April. How many
car accidents will there be in September?
(Give the answer correct to the nearest integer.)
(3 marks)
Solution:
Number of periods = 9 – 4 = 5 1A
Number of car accidents in September
= 4 250  (1 – 3.2%)5 1M
= 3 612, cor. to the nearest integer 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.10

<code=10116614>
<bk=3A><ch=3><ex=3D><type=L1><mark=5><title=10116614><content>
The population of a town is 62 000 now. If the population of the town decreases by 12% every 3
years, will the population of the town be less than 36 000 after 15 years? Explain your answer.
(5 marks)
Solution:
Taking 3 years as a period,
number of periods in 15 years = =5 1A
Population after 15 years
= 62 000  (1 – 12%)5 1M
= 32 719, cor. to the nearest integer 1A
∵ 32 719 < 36 000 1M
∴ The population of the town will be less than 36 000 after 15 years. 1A
<end>

<code=10116616>
<bk=3A><ch=3><ex=3D><type=L1><mark=3><title=10116616><content>
The depreciation rate of a machine is 1.5% every 4 months. Its value was $328 000 in 2016. Find
the value of the machine in 2011.
(Give the answer correct to the nearest dollar.)
(3 marks)
Solution:
Let $P be the value of the machine in 2011.
Taking 4 months as a period,
number of periods = (2016 – 2011) 
= 15 1A
328 000 = P(1 – 1.5%)15 1M

P=

= 411 463, cor. to the nearest integer

∴ The value of the machine in 2011 was $411 463. 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.11

<code=10116630>
<bk=3A><ch=3><ex=3D><type=L1><mark=5><title=10116630><content>
The attendance of an exhibition decreased at a rate of 7% per day from Monday to Friday in a
week. The attendance on Friday was 52 000. The organizer claims that there were over 70 000
visitors to the exhibition on Monday. Do you agree? Explain your answer.
(5 marks)
Solution:
Let x be the attendance on Monday.
Number of periods = 5 – 1
=4 1A
x(1 – 7%) = 52 000
4
1M

x=

= 69 514, cor. to the nearest integer 1A

∵ 69 514 < 70 000 1M
∴ The claim is disagreed. 1A
<end>

<code=10116645>
<bk=3A><ch=3><ex=3E><type=L1><mark=2><title=10116645><content>
In a shop, the number of smartphones sold in June was 75 000. The number of smartphones sold
decreased by 4% from June to July, and then decreased by a further 20% from July to August.
How many smartphones were sold in August?
(2 marks)
Solution:
Number of smartphones sold in August
= 75 000  (1 – 4%)  (1 – 20%) 1M
= 57 600 1A
<end>

<code=10116793>
<bk=3A><ch=3><ex=3E><type=L1><mark=4><title=10116793><content>
Tony’s original weight was 50 kg. His weight first increased by 8% after a holiday, and then
decreased by 8% after joining a fitness programme. Was his weight after the programme equal to
his original weight? Explain your answer.
(4 marks)
Solution:
Tony’s weight after the programme
= 50  (1 + 8%)  (1 – 8%) kg 1M
= 50  1.08  0.92 kg

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.12

= 49.68 kg 1A
 50 kg 1M
∴ His weight after the programme was not equal to his original weight. 1A
<end>

<code=10116798>
<bk=3A><ch=3><ex=3E><type=L1><mark=3><title=10116798><content>
The price of a handbag first increased by 35% and then increased by a further 20%. The final price
is $4 050. Find the original price of the handbag.
(3 marks)
Solution:
Let $P be the original price of the handbag.
P(1 + 35%)(1 + 20%) = 4 050 1M+1A
P(1.35)(1.2) = 4 050
P=
= 2 500
∴ The original price of the handbag is $2 500. 1A
<end>

<code=10116827>
<bk=3A><ch=3><ex=3E><type=L1><mark=6><title=10116827><content>
The length and width of a rectangle are 9 cm and 7 cm respectively. If the length increases by 16%
while the width decreases by 12%, find the percentage change in the perimeter of the rectangle.
(6 marks)
Solution:
Original perimeter = 2  (9 + 7) cm
= 32 cm 1A
New length = 9  (1 + 16%) cm 1M
= 10.44 cm
New width = 7  (1 – 12%) cm
= 6.16 cm
New perimeter = 2  (10.44 + 6.16) cm 1M
= 33.2 cm 1A
Percentage change in the perimeter
= 1M
= +3.75% 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.13

<code=10116882>
<bk=3A><ch=3><ex=3E><type=L1><mark=8><title=10116882><content>
Last month, Mr Lee’s car consumed 76 L of petrol and the charge per L of petrol was $17. This
month, his car consumes 30% less petrol, but the petrol charge increases by 10% as compared to
last month.
(a) Find the petrol consumption and the charge per L of petrol this month.
(b) Find the percentage change in the monthly petrol charge paid by Mr Lee over these two
months.
(8 marks)
Solution:
(a) Petrol consumption this month
= 76  (1 – 30%) L 1M
= 53.2 L 1A
Petrol charge per L this month
= $17  (1 + 10%)
= $18.7 1A

(b) Petrol charge last month

= $17  76
= $1 292 1A
Petrol charge this month
= $18.7  53.2 1M
= $994.84 1A
Percentage change in the petrol charge
= 1M
= –23% 1A
<end>

<code=10116901>
<bk=3A><ch=3><ex=3F><type=L1><mark=2><title=10116901><content>
The rateable value of a flat is $540 000. If the rates percentage charge is 5%, find the rates payable
in a quarter of a year.
(2 marks)
Solution:

Rates payable in a quarter of a year = 1M

= $6 750 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.14

<code=10116980>
<bk=3A><ch=3><ex=3F><type=L1><mark=3><title=10116980><content>
Mr Ma pays $194 000 for the annual rates on his property. If the rates percentage charge is 5%,
find the rateable value of the property.
(3 marks)
Solution:
Let $P be the rateable value of the property.
P  5% = 194 000 1M+1A
P  0.05 = 194 000
P = 3 880 000
∴ The rateable value of the property is $3 880 000. 1A
<end>

<code=10116994>
<bk=3A><ch=3><ex=3F><type=L1><mark=7><title=10116994><content>
The salaries tax rates are as shown in the following table:

Net chargeable income Rate

On the first $40 000 2%
On the next $40 000 7%
On the next $40 000 12%
Remainder 17%

The net chargeable incomes of Billy and Candy are $50 000 and $25 000 respectively. Is Billy’s
salaries tax payable twice Candy’s? Explain your answer.
(7 marks)
Solution:
For Billy:
Net chargeable income = $50 000
= $(40 000 + 10 000) 1M
Net chargeable income Rate Tax
On the first $40 000 2% $ 800
Remainder $10 000 7% $ 700 1M+1A
Total tax: $1 500 1A
∴ Billy’s salaries tax payable is $1 500.
For Candy:
Net chargeable income Rate Tax
On the first $25 000 2% $ 500
Total tax: $ 500 1A
∴ Candy’s salaries tax payable is $500.

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.15

∵ 1M

∴ Billy’s salaries tax payable is not twice Candy’s. 1A

<end>

<code=10117022>
<bk=3A><ch=3><ex=3F><type=L1><mark=5><title=10117022><content>
The salaries tax rates are as shown in the following table:

Net chargeable income Rate

On the first $45 000 2%
On the next $45 000 7%
On the next $45 000 12%
Remainder 17%

The annual income of Tony is $280 000. If he has a total allowance of $132 000, find his salaries
tax payable.
(5 marks)
Solution:
Net chargeable income
= $(280 000 – 132 000) 1M
= $148 000
= $(45 000 + 45 000 + 45 000 + 13 000) 1M
Net chargeable income Rate Tax
On the first $45 000 2% $ 900
On the next $45 000 7% $3 150
On the next $45 000 12% $5 400
Remainder $13 000 17% $2 210 1M+1A
Total tax: $11 660
∴ Tony’s salaries tax payable is $11 660. 1A
<end>

<code=10117029>
<bk=3A><ch=3><ex=3A><type=L1><mark=2><title=10117029><content>
$85 000 is deposited in a bank at an interest rate of 5% p.a. Find the simple interest received after
2.5 years.
(2 marks)
Solution:
Simple interest = 1M
= $10 625 1A
<end>
© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.16
<code=10117117>
<bk=3A><ch=3><ex=3A><type=L1><mark=3><title=10117117><content>
Miss Cheng deposits $50 000 in a bank at an interest rate of 3% p.a. Find the time required to
receive simple interest of $4 500.
(3 marks)
Solution:
Let T years be the time required.
4 500 = 1M+1A
4 500 = 1 500T
T=3
∴ The time required is 3 years. 1A
<end>

<code=10117122>
<bk=3A><ch=3><ex=3A><type=L1><mark=3><title=10117122><content>
Mr Lee borrows a sum of money from a bank at a simple interest rate of 3.5% p.a. to buy some
new machines. If he has to pay interest of $10 500 after 2 years, find the sum of money he borrows
from the bank.
(3 marks)
Solution:
Let $P be the sum of money borrowed.
10 500 = 1M+1A
10 500 = 0.07P
P = 150 000
∴ The sum of money borrowed from the bank is $150 000. 1A
<end>

<code=10117280>
<bk=3A><ch=3><ex=3A><type=L1><mark=2><title=10117280><content>
Fanny deposits $80 000 in a bank at a simple interest rate of 2% p.a. Find the amount received
after 2 years.
(2 marks)
Solution:
Amount received after 2 years = 1M
= $83 200 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.17

<code=10117388>
<bk=3A><ch=3><ex=3A><type=L1><mark=3><title=10117388><content>
A sum of money is deposited in a bank at a simple interest rate of 4% p.a. What is the principal if
the amount received after 3 years is $67 200?
(3 marks)
Solution:
Let $P be the principal.
67 200 = P(1 + 4%  3) 1M+1A
67 200 = 1.12P
P = 60 000
∴ The principal is $60 000. 1A
<end>

<code=10117389>
<bk=3A><ch=3><ex=3B><type=L1><mark=6><title=10117389><content>
$5 000 is deposited in a bank at an interest rate of 4% p.a. for 8 years. Find the interest received in
each of the following situations.
(a) Simple interest is calculated.
(b) The interest is compounded half-yearly.
(Give the answers correct to the nearest dollar if necessary.)
(6 marks)
Solution:
(a) Interest
= $5 000  4%  8 1M
= $1 600 1A

(b) Interest rate for half a year = = 2% 1A

Taking half a year as a period,

number of periods in 8 years = 8  2 = 16 1A
Interest
= $5 000  [(1 + 2%)16 – 1] 1M
= $1 864, cor. to the nearest dollar 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.18

<code=10117408>
<bk=3A><ch=3><ex=3B><type=L1><mark=5><title=10117408><content>
Miss Chan deposits $P in a bank at an interest rate of 6% p.a. and the interest is compounded half-
yearly. If the amount received after 2 years is $16 883, find the value of P.
(Give the answer correct to 3 significant figures.)
(5 marks)
Solution:

Interest rate for half a year = = 3% 1A

Taking half a year as a period,

number of periods in 2 years = 2  2 = 4 1A
16 883 = P(1 + 3%)4 1M+1A

P=

= 15 000, cor. to 3 sig. fig. 1A

<end>

<code=10117413>
<bk=3A><ch=3><ex=3B><type=L1><mark=4><title=10117413><content>
Mr Lee deposits $25 000 in a bank at an interest rate of 5% p.a. compounded yearly. One year
later, the interest rate is reduced to 4% p.a. compounded yearly. What will be the amount received
at the end of the third year?
(4 marks)
Solution:
Amount received at the end of the first year
= $25 000  (1 + 5%) 1M
= $26 250 1A
Amount received at the end of the third year
= $26 250  (1 + 4%)2 1M
= $28 392 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.19

<code=10117415>
<bk=3A><ch=3><ex=3C><type=L1><mark=2><title=10117415><content>
The number of visitors of a zoo increases by 7% every year. If the number of visitors is 150 000
this year, what will be the number of visitors after 3 years?
(Give the answer correct to the nearest 1 000.)
(2 marks)
Solution:
Number of visitors after 3 years
= 150 000  (1 + 7%)3 1M
= 184 000, cor. to the nearest 1 000 1A
<end>

<code=10117448>
<bk=3A><ch=3><ex=3C><type=L1><mark=2><title=10117448><content>
The income of Polly’s company in this year is $2 000 000. Owing to the economic downturn,
Polly estimates that the turnover will only increase at a rate of 2% steadily per year in the coming
years. Based on Polly’s estimation, what will be the turnover of the company after 5 years?
(Give the answer correct to the nearest $10 000.)
(2 marks)
Solution:
Turnover of the company after 5 years
= $2 000 000  (1 + 2%)5 1M
= $2 210 000, cor. to the nearest $10 000 1A
<end>

<code=10117471>
<bk=3A><ch=3><ex=3C><type=L1><mark=2><title=10117471><content>
The original area of the Sunrise Park is 1 260 000 m2. If the area of the park increases at a constant
rate of 15% per year, what will be the area of the park after 4 years?
(Give the answer correct to the nearest 1 000 m2.)
(2 marks)
Solution:
Area of the park after 4 years
= 1 260 000  (1 + 15%)4 m2 1M
= 2 204 000 m2, cor. to the nearest 1 000 m2 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.20

<code=10117480>
<bk=3A><ch=3><ex=3C><type=L1><mark=3><title=10117480><content>
Alice bought a diamond for $60 000 at the beginning of 2008. Its value has increased steadily at a
rate of 7% per year for the next 10 years. Find the value of the diamond at the beginning of 2017.
(Give the answer correct to the nearest dollar.)
(3 marks)
Solution:
Number of periods = 2017 – 2008 = 9 1A
Value of the diamond at the beginning of 2017
= $60 000  (1 + 7%)9 1M
= $110 308, cor. to the nearest dollar 1A
<end>

<code=10117628>
<bk=3A><ch=3><ex=3D><type=L1><mark=2><title=10117628><content>
The present price of a can of pork is $17.9. If the price decreases steadily by 9% per week, what
will the price of the can of pork be after 4 weeks?
(Give the answer correct to the nearest $0.1.)
(2 marks)
Solution:
Price of the can of pork after 4 weeks
= $17.9  (1 – 9%)4 1M
= $12.3, cor. to the nearest $0.1 1A
<end>

<code=10117724>
<bk=3A><ch=3><ex=3D><type=L1><mark=3><title=10117724><content>
The value of a digital camcorder depreciates by 25% per year. If its present value is $9 000, find
the value of the digital camcorder 2 years ago.
(3 marks)
Solution:
Let $P be the value of the digital camcorder 2 years ago.
9 000 = P(1 – 25%)2 1M+1A
9 000 = P(0.75) 2

P=

= 16 000
∴ The value of the digital camcorder 2 years ago was $16 000. 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.21

<code=10117761>
<bk=3A><ch=3><ex=3E><type=L1><mark=4><title=10117761><content>
The weight of Shirley in the beginning of the school term was 60 kg. Her weight decreased by
10% in the middle of the term and then increased by 5% at the end of the term.
(a) What was Shirley’s weight at the end of the term?
(b) What was the percentage change in her weight over the school term?
(4 marks)
Solution:
(a) Shirley’s weight at the end of the term
= 60  (1 − 10%)  (1 + 5%) kg 1M
= 60  0.9  1.05 kg
= 56.7 kg 1A

(b) Percentage change in her weight

= 1M

= –5.5% 1A
<end>

<code=10117823>
<bk=3A><ch=3><ex=3E><type=L1><mark=4><title=10117823><content>
5 years ago, Mr Wong’s monthly salary was $15 000. Within the past 5 years, his monthly salary
increased steadily at a rate of 8% per year in the first 3 years due to his good performance.
However, his monthly salary decreased steadily at a rate of 10% per year in the next 2 years.
(a) What is Mr Wong’s present monthly salary?
(Give the answer correct to the nearest dollar.)
(b) Has Mr Wong’s monthly salary increased or decreased over these 5 years?
(4 marks)
Solution:
(a) Mr Wong’s present monthly salary
= $15 000  (1 + 8%)3  (1 – 10%)2 1M
= $15 306, cor. to the nearest dollar 1A

(b) ∵ $15 306 > $15 000 1M

∴ Mr Wong’s monthly salary has increased over these 5 years. 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.22

<code=10117838>
<bk=3A><ch=3><ex=3E><type=L1><mark=4><title=10117838><content>
In a 10 km race, the speed of an athlete increases steadily by 5% every 5 minutes during the first
20 minutes, and then increases steadily by 3% every 5 minutes during the next 10 minutes. If the
original speed of the athlete is 15 km/h, find his speed just after the first 30 minutes, correct to the
nearest km/h.
(4 marks)
Solution:
Taking 5 minutes as a period,
number of periods in the first 20 minutes = =4 1A

number of periods in the next 10 minutes = =2 1A

His speed just after the first 30 minutes
= 15  (1 + 5%)4  (1 + 3%)2 km/h 1M
= 19 km/h, cor. to the nearest km/h 1A
<end>

<code=10117867>
<bk=3A><ch=3><ex=3E><type=L1><mark=3><title=10117867><content>
The price of a pair of jeans is first decreased by 30% and then decreased by 5%. The price
becomes $532. Find the original price of the pair of jeans.
(3 marks)
Solution:
Let $P be the original price of the pair of jeans.
532 = P(1 – 30%)(1 – 5%) 1M+1A
532 = P(0.7)(0.95)
P=
= 800
∴ The original price of the pair of jeans is $800. 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.23

<code=10117879>
<bk=3A><ch=3><ex=3E><type=L1><mark=6><title=10117879><content>
Last year, there were 720 students in a school, 500 of them were boys and the rest were girls. This
year, the number of boys is increased by 30% and the number of girls is decreased by 15%. Find
the percentage change in the number of students in that school.
(6 marks)
Solution:
Number of boys this year = 500  (1 + 30%) 1M
= 650
Number of girls last year = 720 – 500 1M
= 220
Number of girls this year = 220  (1 – 15%)
= 187
Total number of students this year = 650 + 187 1M
= 837 1A
∴ Percentage change in the number of students
= 1M
= +16.25% 1A
<end>

<code=10117894>
<bk=3A><ch=3><ex=3E><type=L1><mark=6><title=10117894><content>
Johnny sent 50 SMS messages last month and the charge for each SMS message sent was $0.5. In
this month, the number of SMS messages sent by Johnny is reduced by 30% and the charge for
each SMS message sent is increased by 20%.
(a) Find the total charge for sending SMS messages this month.
(b) Find the percentage change in the monthly charge of sending SMS messages over these two
months.
(6 marks)
Solution:
(a) Number of SMS messages sent this month = 50  (1 – 30%) 1M
= 35
Charge for each SMS message sent this month = $0.5  (1 + 20%)
= $0.6
Total charge for sending SMS messages this month = $0.6  35 1M
= $21 1A

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.24

(b) Total charge for sending SMS messages last month = $0.5  50
= $25 1A
Percentage change in the monthly charge of sending SMS messages
= 1M
= –16% 1A
<end>

<code=10117939>
<bk=3A><ch=3><ex=3E><type=L1><mark=7><title=10117939><content>
In the figure, the upper base, lower base and height of a trapezium are 12 cm, 20 cm and 10 cm
respectively.

(a) Find the area of the trapezium.

(b) If each of the two bases is increased by 20% and the height of the trapezium is decreased by
10%, find
(i) the new area,
(ii) the percentage change in the area
of the trapezium.
(7 marks)
Solution:
(a) Area of the trapezium
=
= 160 cm2 1A

(b) (i) New upper base = 12  (1 + 20%) cm 1M

= 14.4 cm
New lower base = 20  (1 + 20%) cm
= 24 cm
New height = 10  (1 – 10%) cm 1M
= 9 cm
New area = 1M
= 172.8 cm2 1A

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.25

 (ii) Percentage change in the area of the trapezium
= 1M
= +8% 1A
<end>

<code=10118085>
<bk=3A><ch=3><ex=3F><type=L1><mark=2><title=10118085><content>
The rateable value of a flat of Mr Lee is $2 500 000. If the rates percentage charge is 5%, find the
rates payable on the flat for a quarter of a year.
(2 marks)
Solution:
Rates payable for a quarter of a year
= 1M
= $31 250 1A
<end>

<code=10118102>
<bk=3A><ch=3><ex=3F><type=L1><mark=3><title=10118102><content>
Miss Lam has to pay $21 875 for the quarterly rates on her flat. If the rates percentage charge is
5%, find the rateable value of her flat.
(3 marks)
Solution:
Let $P be the rateable value of her flat.
= 21 875
1M+1A
P  0.05 = 87 500
P = 1 750 000
∴ The rateable value of her flat is $1 750 000. 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.26

<code=10118147>
<bk=3A><ch=3><ex=3F><type=L1><mark=4><title=10118147><content>
The salaries tax rates are as shown in the following table:

Net chargeable income Rate

On the first $40 000 2%
On the next $40 000 7%
On the next $40 000 12%
Remainder 17%

Mr Chan has a net chargeable income of $234 000. Find his salaries tax payable.
(4 marks)
Solution:
Net chargeable income
= $234 000
= $(40 000 + 40 000 + 40 000 + 114 000) 1M
Net chargeable income Rate Tax
On the first $40 000 2% $ 800
On the next $40 000 7% $2 800
On the next $40 000 12% $4 800
Remainder $114 000 17% $19 380 1M+1A
Total tax: $27 780
∴ Mr Chan’s salaries tax payable is $27 780. 1A
<end>

© OXFORD UNIVERSITY PRESS 2017 3A Chapter 3 Level 1 P.27