# 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... £670 is invested at 5% pa compound interest for 10 years. £ \$540 is invested at 2% pa compound interest for 15 years. \$ €733 is invested at 4% pa compound interest for 18 years. € Find the total amount available if ... £580 is invested at 3% pa compound interest for 8 years. £ \$490 is invested at 1% pa compound interest for 18 years. \$ €643 is invested at 2% pa compound interest for 11 years. € What was the initial amount invested if... £620.03 is accrued after 4 years invested with 4% pa compound interest. £ \$1359.12 is accrued after 8 years invested with 2% pa compound interest. \$ €220.81 is accrued after 18 years invested with 4% pa compound interest. € How many years would it take for ... £742.85 to be accrued after £700 is invested with 2% pa compound interest. Years: \$7460.43 to be accrued after \$5040 is invested with 4% pa compound interest. Years: €517.26 to be accrued after €336 is invested with 4% 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.

## Transum.org

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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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 9 May 'Starter of the Day' page by Liz, Kuwait:

"I would like to thank you for the excellent resources which I used every day. My students would often turn up early to tackle the starter of the day as there were stamps for the first 5 finishers. We also had a lot of fun with the fun maths. All in all your resources provoked discussion and the students had a lot of fun."

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"I used this with my bottom set in year 9. To engage them I used their name and favorite football team (or pop group) instead of the school name. For homework, I asked each student to find a definition for the key words they had been given (once they had fun trying to guess the answer) and they presented their findings to the rest of the class the following day. They felt really special because the key words came from their own personal information."

#### 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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