Calculating compound interest rates
I can calculate compound interest rates given start and end values.
Calculating compound interest rates
I can calculate compound interest rates given start and end values.
These resources will be removed by end of Summer Term 2025.
Lesson details
Key learning points
- If the compound interest rate is fixed but unknown, you can calculate it.
- To calculate it you need to know the start and end values, as well as the period of time.
- The interest rate is interpreted based on the period of time.
- The period of time could be per day/week/month/year etc.
Keywords
Rate of interest - The rate of interest is the percentage by which an amount increases.
Compound interest - Compound interest is the interest calculated on the original amount and the interest accumulated over the previous period.
Exponential form - When a number is multiplied by itself multiple times, it can be written more simply in exponential form.
Common misconception
When using multipliers, pupils can mistake a decimal for the percentage decrease. e.g. 0.52 is a 52% decrease, rather than recognising a 48% decrease.
Reminding students that a decimal multiplier greater than 1 means an increase, and a decimal multiplier less than 1 means a decrease. The latter requires a subtraction from 1 or 100%.
To help you plan your year 10 maths lesson on: Calculating compound interest rates, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your year 10 maths lesson on: Calculating compound interest rates, 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.
We use learning cycles to break down learning into key concepts or ideas linked to the learning outcome. Each learning cycle features explanations with checks for understanding and practice tasks with feedback. All of this is found in our slide decks, ready for you to download and edit. The practice tasks are also available as printable worksheets and some lessons have additional materials with extra material you might need for teaching the lesson.
The assessment exit quiz will test your pupils' understanding of the key learning points.
Our video is a tool for planning, showing how other teachers might teach the lesson, offering helpful tips, modelled explanations and inspiration for your own delivery in the classroom. Plus, you can set it as homework or revision for pupils and keep their learning on track by sharing an online pupil version of this lesson.
Explore more key stage 4 maths lessons from the Percentages unit, dive into the full secondary maths curriculum, or learn more about lesson planning.