Simple interest calculations with technology
I can carry out simple interest calculations with a calculator.
Simple interest calculations with technology
I can carry out simple interest calculations with a calculator.
Lesson details
Key learning points
- Calculators are very useful here as they can be programmed efficiently.
- This saves time and can reduce error.
- It is also quick to reverse the process to find the original amount.
- The use of a multiplier ensures greater efficiency.
Common misconception
A single digit percentage is incorrectly worked out by dividing by 10 and not 100 e.g 3% = 0.3, e.g. 0.54% = 0.054
Dividing the percentage by 100 gives the decimal equivalent i.e 0.54% = 0.0054
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.
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
Loading...