Number 4

4 marks · Normal

A vintage car is bought for £24,000. The value of the car increases by 6% in the first year and then by a further 4% in the second year.

(a)

Calculate the value of the car after the first year.

[1 mark]

(b)

Calculate the value of the car after two years. Give your answer to the nearest pound.

[3 marks]

Work this out on paper, then compare with the answer and worked solution below. With a free account you can submit written answers for marking.

Show answer

(a) £25,440 £

(b) £26,457 £

Common mistakes: adding percentages instead of using multiplying factors successively

Show mark scheme and worked solution

Marking points

M1 (a) · 1 mark · Uses correct multiplying factor to find value after 6% increase

M2 (b) · 1 mark · Uses correct multiplying factor for 4% increase or uses previous answer (follow-through)

A1 (b) · 2 marks · Correct final value after 2 years (to nearest pound) following correct process (follow-through)

Worked solution

a) Value after 1st year: £24,000 × 1.06 = £25,440

b) Value after 2nd year: £25,440 × 1.04 = £26,457.6

Final answer: £26,457 (nearest pound).