Simple interest calculations
I can carry out simple interest calculations.
Simple interest calculations
I can carry out simple interest calculations.
Lesson details
Key learning points
- Simple interest is calculated once and then added repeatedly.
- By considering the calculations for simple interest, you can be more efficient.
- Through understanding the structure, you can reverse the calculations to find the original amount.
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.
Keywords
Rate of interest - The rate of interest is the percentage by which an amount increases
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.
Licence
This content is © Oak National Academy Limited (2024), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).
Video
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