Pupils assess the impact of increased commodity prices during a period of inflation on the cost of producing smartphones.
Scenario
Smartphone production requires a number of key raw materials and components. However, some of these raw materials are only found in a small number of countries and essential components, such as semiconductors, are only produced by a handful of companies. Therefore, these materials and components are prone to large price increases during periods of high inflation. You are an apprentice in the finance department of a global smartphone maker and have been tasked with assessing the impact of these price increases on the cost of producing smartphones.
Curriculum references
| National Curriculum 16 | Set up, solve and interpret the answers in growth and decay problems, including compound interest and work with general iterative processes. |
| OCR 5.03a | Calculate simple interest including in financial contexts. Solve problems step-by-step involving multipliers over a given interval, for example, compound interest, depreciation, etc. Express exponential growth or decay as a formula. Solve and interpret answers in growth and decay problems. |
| AQA Edexcel R16 | Set up, solve and interpret the answers in growth and decay problems, including compound interest. And work with general iterative processes. |