SmarterEd

Aussie Maths & Science Teachers: Save your time with SmarterEd

  • Login
  • Get Help
  • About

Compound Interest, SMB-004

In Japan, a bowl of ramen cost 1000 Japanese yen in 2005. The cost of ramen has increased by 0.5% per annum since then. 

Determine the cost of the same bowl of ramen in 2020 in Japanese yen, to the nearest yen.   (2 marks)

--- 4 WORK AREA LINES (style=lined) ---

Show Answers Only

`1078\ text{yen}`

Show Worked Solution

`r =\ text(0.5%)\ = 0.005`

`n = 15\ text(years)`

`FV` `=PV(1+r)^n`  
  `=1000(1 + 0.005)^15`  
  `=1077.68…`  
  `=1078\ text{yen}`  

Filed Under: Compound Interest Tagged With: num-title-ct-coreb, smc-4334-10-Find FV, smc-4334-70-Inflation

Copyright © 2014–2025 SmarterEd.com.au · Log in