1. Repeated percentages
Example: Due to inflation, prices increase by 5% per year. An item costs £12 now. What will it cost in 2 years time?
After 1 year = 12 x 1.05 = £12.60
After 2 years = x 1.05 = £13.23
% Repeated: 12 x 1.05 x 1.05 = 12 x (1.05)²

2. Each year a car loses its value by 12% at the
beginning of the year. A brand new Ford Fiesta
costs £7549. Find its value after 3 years.
100% - 12% = 88%
After 1 year = £7549 x 0.88 = £
After 2 years = £ x 0.88 = £
After 3 years = £ x 0.88 = £ OR
£7549 x (0.88)³ = £