Problem-solving practice 1 A chocolate bar cost 12p in 1995. It costs 20p in 2018. Prices are expected to increase by 2% every year from the previous year. Has the chocolate bar increased in price more or less than expected? You must show your working.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Problem-solving practice
1 A chocolate bar cost 12p in 1995. It costs 20p in 2018.
Prices are expected to increase by 2% every year from the previous year.
Has the chocolate bar increased in price more or less than expected?
You must show your working.
2 Chelsea wants to take out a loan to go on holiday.
The holiday costs £1500.
Chelsea can take out a loan that she pays back after 4 weeks at 0.2% compou
per day. Or she can take out a loan that she pays back after 2 years at 2.5% c
per annum.
Transcribed Image Text:MU RUPIC Additional rate 45t over €150,000 Problem-solving practice 1 A chocolate bar cost 12p in 1995. It costs 20p in 2018. Prices are expected to increase by 2% every year from the previous year. Has the chocolate bar increased in price more or less than expected? You must show your working. 2 Chelsea wants to take out a loan to go on holiday. The holiday costs £1500. Chelsea can take out a loan that she pays back after 4 weeks at 0.2% compou per day. Or she can take out a loan that she pays back after 2 years at 2.5% c per annum.
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