# Interest

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

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

This is level 2; Compound 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... £600 is invested at 5% pa compound interest for 8 years. £ \$120 is invested at 2% pa compound interest for 16 years. \$ €423 is invested at 1% pa compound interest for 20 years. € Find the total amount available if ... £390 is invested at 5% pa compound interest for 7 years. £ \$250 is invested at 5% pa compound interest for 20 years. \$ €710 is invested at 4% pa compound interest for 11 years. € What was the initial amount invested if... £871.66 is accrued after 6 years invested with 3% pa compound interest. £ \$6872.38 is accrued after 9 years invested with 5% pa compound interest. \$ €1215.64 is accrued after 15 years invested with 4% pa compound interest. € How many years would it take for ... £789.56 to be accrued after £600 is invested with 4% pa compound interest. Years: \$14660.05 to be accrued after \$9000 is invested with 5% pa compound interest. Years: €1460.58 to be accrued after €578 is invested with 5% pa compound interest. Years:
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This is Interest level 2. You can also try:
Level 1 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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Mathematicians are not the people who find Maths easy; they are the people who enjoy how mystifying, puzzling and hard it is. Are you a mathematician?

Comment recorded on the 14 September 'Starter of the Day' page by Trish Bailey, Kingstone School:

"This is a great memory aid which could be used for formulae or key facts etc - in any subject area. The PICTURE is such an aid to remembering where each number or group of numbers is - my pupils love it!
Thanks"

Comment recorded on the 9 October 'Starter of the Day' page by Mr Jones, Wales:

"I think that having a starter of the day helps improve maths in general. My pupils say they love them!!!"

#### ChrisMaths

Christmas activities make those December Maths lessons interesting, exciting and relevant. If students have access to computers there are some online activities to keep them engaged such as Christmas Ornaments and Christmas Light Up.

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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

If you found this activity useful don't forget to record it in your scheme of work or learning management system. The short URL, ready to be copied and pasted, is as follows:

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© Transum Mathematics :: This activity can be found online at:
www.transum.org/Maths/Activity/Interest/Default.asp?Level=2

## 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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