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Maths Homework Help

Hi! I've attempted this question quite a few times now and I can't seem to get the answer. Is anyone willing to help?
Sarah invested £12000 in a unit trust five years ago. The value of the unit trust has increased by 7% per annum for each of the last three years. Before this, the price had decreased by 3% per annum.
Calculate the current price of the unit trust. Give your answer to the nearest whole number of pounds.
I'm sure there's an easier way to work it out, but this is what I thought of first. For the first year the 12,000 decreases by 3% so you'd want to take away 3% of 12,000. You'd should have learnt in class that a decrease in 3% is the same as multiplying by 0.97 (if 1 represents 100%, then 0.97 represents 100%-3%) Repeat with your new figure for year 2.
Then for the last 3 years, you'll want to calculate 7% of your new total and add it on. This is the same as multiplying by 1.07 each time.

Hope this helps!
Reply 2
Original post by flaurie
I'm sure there's an easier way to work it out, but this is what I thought of first. For the first year the 12,000 decreases by 3% so you'd want to take away 3% of 12,000. You'd should have learnt in class that a decrease in 3% is the same as multiplying by 0.97 (if 1 represents 100%, then 0.97 represents 100%-3%) Repeat with your new figure for year 2.
Then for the last 3 years, you'll want to calculate 7% of your new total and add it on. This is the same as multiplying by 1.07 each time.

Hope this helps!

Thank you so much! I was struggling with how to work it out because I think I was supposed to put it to the power of something by 1.07 and 1.03 or something like that, but I'll try this method now! Much appreciated!

EDIT: THANK YOU SO MUCH! IT WORKED!!!
(edited 2 months ago)
Original post by mmik_mikaeel
Thank you so much! I was struggling with how to work it out because I think I was supposed to put it to the power of something by 1.07 and 1.03 or something like that, but I'll try this method now! Much appreciated!

EDIT: THANK YOU SO MUCH! IT WORKED!!!

Glad it worked! You're almost there with your thinking about powers too - to do this quicker than working each year out separately, you could also do
12000 x 0.972 x 1.073
Reply 4
Original post by flaurie
Glad it worked! You're almost there with your thinking about powers too - to do this quicker than working each year out separately, you could also do
12000 x 0.972 x 1.073

That's what I would have done

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