Simple and compound interest
I can appreciate the difference between simple interest and compound interest.
Simple and compound interest
I can appreciate the difference between simple interest and compound interest.
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Lesson details
Key learning points
- Repeated percentage change occurs in real-life.
- Simple interest is calculated once and then added repeatedly.
- Compound interest is recalculated at each stage.
- By considering the calculations for compound interest, you can be more efficient.
- Calculators can simplify this process even further.
Keywords
Simple interest - Interest is money added to savings or loans. Simple interest is always calculated on the original amount
Compound interest - Compound interest is the interest calculated on the original amount and the interest accumulated over the previous period.
Common misconception
Pupils should pay careful attention to what the question asks. Working out the overall amount after a simple or compound increase is different to working out the total interest only.
Pupils can underline or highlight the key instruction to the question e.g. Total amount or total interest, to remind them of the need to subtract from the original amount or not.
To help you plan your year 10 maths lesson on: Simple and compound interest, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your year 10 maths lesson on: Simple and compound interest, download all teaching resources for free and adapt to suit your pupils' needs.
The starter quiz will activate and check your pupils' prior knowledge, with versions available both with and without answers in PDF format.
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Explore more key stage 4 maths lessons from the Percentages unit, dive into the full secondary maths curriculum, or learn more about lesson planning.
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