Interest is money added to savings or loans. Simple interest is always calculated on the original amount

Compound interest is the interest calculated on the original amount and the interest accumulated over the previous period.

Simple interest calculations with technology

Maths

The ratio unit will cover comparing fractions, percentages and ratios and being able to move fluently between them. This unit ensures pupils have had the opportunity to work with finding the percentage of an amount and the opportunity to calculate interest.

In the prior unit, pupils developed the skills to calculate a given percentage of an amount. In this unit, these skills are extended to performing simple and compound interest calculations.

Percentages

What is the amount of simple 1.3% interest earned on an investment of £400 over 6 years?

What is the amount of simple 1.6% interest earned on an investment of £500 over 4 years?

What is the amount of simple 2.8% interest earned on an investment of £638 over 10 years?

What is the amount of compound 2.8% interest earned on an investment of £638 over 10 years?

What is the amount of compound 4.9% interest earned on an investment of £230 over 8 years (to 2 d.p.)?

What is the amount of compound 2.3% interest earned on an investment of £1000 over 20 years (to 2 d.p.)?

If I increase £45 to £126, what is the percentage gain? 

A data analyst celebrates his investment increasing by 14% which is now worth £1094.40. How much did he originally invest?

If I decrease £48 to £12, what is the percentage loss? 

If I increase £75 to £97.50, what is the percentage gain? 

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