# Interest

## Practise using the formulas for simple interest and compound interest.

##### Simple InterestCompound InterestExam Style QuestionsFormulasMore Financial Maths

This is level 1; Simple Interest. Give all of your answers to two decimal places. You can earn a trophy if you get at least 9 correct and you do this activity online.

 Find the amount of interest earned if... £560 is invested at 4% pa simple interest for 8 years. £ \$450 is invested at 2% pa simple interest for 13 years. \$ €868 is invested at 5% pa simple interest for 17 years. € Find the total amount available if ... £150 is invested at 1% pa simple interest for 5 years. £ \$110 is invested at 2% pa simple interest for 16 years. \$ €796 is invested at 5% pa simple interest for 18 years. € What was the initial amount invested if... £368.00 is accrued after 5 years invested with 3% pa simple interest. £ \$5074.00 is accrued after 6 years invested with 3% pa simple interest. \$ €936.10 is accrued after 10 years invested with 1% pa simple interest. € How many years would it take for ... £990.00 to be accrued after £900 is invested with 2% pa simple interest. Years: \$2281.60 to be accrued after \$1840 is invested with 3% pa simple interest. Years: €513.92 to be accrued after €292 is invested with 4% pa simple interest. Years:
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This is Interest level 1. You can also try:
Level 2 Level 3

## Instructions

Try your best to answer the questions above. Type your answers into the boxes provided leaving no spaces. As you work through the exercise regularly click the "check" button. If you have any wrong answers, do your best to do corrections but if there is anything you don't understand, please ask your teacher for help.

When you have got all of the questions correct you may want to print out this page and paste it into your exercise book. If you keep your work in an ePortfolio you could take a screen shot of your answers and paste that into your Maths file.

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This web site contains over a thousand free mathematical activities for teachers and pupils. Click here to go to the main page which links to all of the resources available.

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#### Nim

A very old game but one which involves mathematical based strategies. Take turns with the computer to remove items from the piles. You can remove as many items from the same row as you like. Whoever removes the last item is the winner.

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## Go Maths

Learning and understanding Mathematics, at every level, requires learner engagement. Mathematics is not a spectator sport. Sometimes traditional teaching fails to actively involve students. One way to address the problem is through the use of interactive activities and this web site provides many of those. The Go Maths page is an alphabetical list of free activities designed for students in Secondary/High school.

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## Teachers

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© Transum Mathematics :: This activity can be found online at:
www.transum.org/Maths/Activity/Interest/Default.asp?Level=1

## Description of Levels

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Level 1 - Simple Interest

Level 2 - Compound Interest

Level 3 - Exam Style Questions

## Formulas

Simple interest: I = P × R ÷ 100 × T

Compound interest: I = P(1 + R ÷ 100)T − P

I is the amount of interest earned by the investment.

P is the principal, the amount originally invested.

R is the rate of interest expressed as a percentage.

T is the number of years the amount was invested for.

If you are following a syllabus that allows the use of a graphic display calculator you could use the Finance Solver to help calculate answers for the compound interest questions.

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