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18 (a) Write down the multiplier for an increase of 140% - OCR - GCSE Maths - Question 18 - 2019 - Paper 1
Question 18
18 (a) Write down the multiplier for an increase of 140%. Give your answer as a decimal. (b) Ali invests £1500 in October. The investment increases in val... show full transcript
Worked Solution & Example Answer:18 (a) Write down the multiplier for an increase of 140% - OCR - GCSE Maths - Question 18 - 2019 - Paper 1
Step 1
Step 2
Explain what Ali has done wrong.
Answer
Ali has incorrectly subtracted the percentage changes.
Instead of simply calculating a net percentage change, he needs to consider the effect of each change sequentially. The value increase and decrease are applied to different base amounts, which means that the changes do not simply cancel each other out.
Step 3
Work out the correct percentage loss.
Answer
First, we find the value after the November increase:
Investment value after November = £1500 * 1.10 = £1650.
Next, we find the value after the December decrease:
Investment value after December = £1650 * 0.80 = £1320.
Now, we calculate the loss:
Loss = £1650 - £1320 = £330.
Finally, we calculate the percentage loss relative to the original investment:
Percentage loss = ( \frac{330}{1500} \times 100 = 22% )
Thus, the correct percentage loss is 22%.