Finance Growth and Decay Practice Questions
Matric (South Africa) · Matric Mathematics · 150 free MCQs with instant results and detailed explanations.
150
Total
61
Easy
74
Medium
15
Hard
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Sample Questions from Finance Growth and Decay
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Q1
Easy
An amount of R8000 depreciates by 10% each year. What will be the value of the asset after 2 years?
A.
R7200
B.
R6400
C.
R6800
D.
R7600
Show Answer & Explanation
Correct Answer: C
For depreciation, the value after each year can be calculated using the formula V = P(1 - r)^n. Here, P = R8000, r = 0.10, and n = 2. So, V = 8000(1 - 0.10)^2 = 8000 * 0.81 = 6480.
Q2
Easy
A savings account offers a simple interest of 6% per annum. If you deposit R2000, how much interest will you earn in 5 years?
A.
R600
B.
R100
C.
R120
D.
R200
Show Answer & Explanation
Correct Answer: A
Using the simple interest formula I = P * r * t, where P is the principal (R2000), r is the interest rate (0.06), and t is the time in years (5), we calculate I = 2000 * 0.06 * 5 = R600.
Q3
Easy
If you invest R1000 at an interest rate of 5% per annum for 3 years, how much will you have at the end of the investment period using simple interest?
A.
R1150
B.
R1000
C.
R1200
D.
R1100
Show Answer & Explanation
Correct Answer: A
Using the formula for simple interest, Total Amount = Principal + (Principal * Rate * Time). Here, Total Amount = 1000 + (1000 * 0.05 * 3) = 1150. Thus, the correct answer is R1150.
Q4
Medium
If R1500 is invested at a simple interest rate of 10% per annum, how much interest will be earned after 4 years?
A.
R600
B.
R450
C.
R300
D.
R400
Show Answer & Explanation
Correct Answer: B
Using the simple interest formula I = P*r*t, where P = R1500, r = 0.10, t = 4, we calculate I = 1500 * 0.10 * 4 = R600. Thus, interest earned is R600.
Q5
Medium
A loan of R1,200 is taken out at a simple interest rate of 8% per annum. How much interest will be paid after 4 years?
A.
R384
B.
R96
C.
R192
D.
R240
Show Answer & Explanation
Correct Answer: C
Simple interest is calculated using the formula I = P * r * t. Here, P = 1200, r = 0.08, and t = 4. Thus, I = 1200 * 0.08 * 4 = R384, which is the total interest payable.
Q6
Medium
An investment doubles every 10 years. If you invest R2,000 today, what will be its value in 30 years?
A.
R16,000
B.
R8,000
C.
R4,000
D.
R2,000
Show Answer & Explanation
Correct Answer: A
The investment doubles every 10 years, so in 30 years (3 doubling periods), the value will be 2000 * 2^3 = R2000 * 8 = R16,000.
Q7
Medium
A loan of R2000 is taken at an interest rate of 15% per annum for 4 years. How much total interest is paid if it's simple interest?
A.
R1200
B.
R800
C.
R600
D.
R1000
Show Answer & Explanation
Correct Answer: B
Using the simple interest formula I = P * r * t, where P = 2000, r = 0.15, and t = 4, the total interest is R800.
Q8
Hard
A company invests R10,000 at an interest rate of 8% per annum compounded annually. What will the total amount be after 5 years?
A.
R14,693.28
B.
R15,000.00
C.
R12,000.00
D.
R13,400.00
Show Answer & Explanation
Correct Answer: A
Using the formula for compound interest, A = P(1 + r/n)^(nt), where P is the principal amount (R10,000), r is the annual interest rate (0.08), n is the number of times interest applied per time period (1), and t is the number of time periods the money is invested or borrowed for (5). The calculation gives R14,693.28.
Q9
Hard
If a car's value depreciates at a rate of 15% per annum, what will be the value of the car after 3 years if its current value is R50,000?
A.
R33,580.25
B.
R42,500.00
C.
R30,000.00
D.
R38,250.00
Show Answer & Explanation
Correct Answer: A
Using the formula for depreciation, A = P(1 - r)^t, where P is the initial value (R50,000), r is the depreciation rate (0.15), and t is the time in years (3). The calculation results in R33,580.25.
Q10
Hard
If a population of a certain bacteria doubles every 3 hours, how many hours will it take for the population to grow from 500 to 8000?
A.
9 hours
B.
12 hours
C.
15 hours
D.
18 hours
Show Answer & Explanation
Correct Answer: B
Starting with 500, we can calculate the population growth by doubling. 500 → 1000 (3 hours), 1000 → 2000 (6 hours), 2000 → 4000 (9 hours), and finally 4000 → 8000 (12 hours). Thus, it takes 12 hours to reach 8000.
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Finance Growth and Decay — Matric (South Africa) Matric Mathematics Practice Questions Online
This page contains 150 practice MCQs for the chapter Finance Growth and Decay in Matric (South Africa) Matric Mathematics. The questions are organized by difficulty — 61 easy, 74 medium, 15 hard — so you can choose the right level for your preparation.
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