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These are the Transum resources related to the statement: "Financial applications of geometric sequences and series: compound interest and annual depreciation".

Here are some specific activities, investigations or visual aids we have picked out. Click anywhere in the grey area to access the resource.

- Compound Interest Calculator A customised online calculator for quickly finding the solutions to compound interest problems.
- Interest Practise using the formulas for simple interest and compound interest.

Here are some exam-style questions on this statement:

- "
*Winky Lash wants to invest £20 000 for 3 years in a bank. She has the following two choices of banks, both offering compound interest but on different terms:*" ... more - "
*The value of a boat is £220 000.*" ... more - "
*The value of a new car is £22 000.*" ... more - "
*Michael Banks invests £2000 in a savings account for two years. The account pays 2% compound interest per annum.*" ... more - "
*The value of a new house, \(V\), is given by:*" ... more - "
*Here are the details for two bank accounts.*" ... more - "
*Montague invests £7000 for six years in a bank offering compound interest at \(x%\) per annum.*" ... more - "
*On Billy's 16th birthday his parents gave him options of how he might receive his monthly allowance for the next two years.*" ... more - "
*All answers to this question should be given to the nearest whole currency unit.*" ... more - "
*Ruby invests a certain amount of money in a bank account that pays a nominal annual interest rate of 6.7%, compounded quarterly.*" ... more

Click on a topic below for suggested lesson starters, resources and activities from Transum.

- Money For many pupils the ability to understand financial transactions is a skill they thank their mathematics teacher for. Understanding the use of money is a real, practical application of mathematics in the real world and is just as important today as ever it was. When it comes to managing our money and avoiding costly mistakes it is well worthwhile to strive to become an expert. There are key aspects of personal finance the pupils should understand as the get older and more independent in their lives and the activities provided here provide resources for a small part of their learning process.
- Sequences A pattern of numbers following a rule is called a sequence. There are many different types of sequence and this topic introduces pupils to some of them. The most basic sequences of numbers is formed by adding a constant to a term to get the next term of the sequence. This rule can be expressed as a linear equation and the terms of the sequence when plotted as a series of coordinates forms a straight line. More complex sequences are investigated where the rule is not a linear function. Other well-known sequences includes the Fibonacci sequence where the rule for obtaining the next term depends on the previous two terms. Sequences can be derived from shapes and patterns. A growing patterns of squares or triangles formed from toothpicks is often used to show linear sequences in a very practical way. Diagrams representing sequences provides interesting display material for the classroom. Typically pupils are challenged to find the next term of a given sequence but a deeper understanding is needed to find intermediate terms, 100th term or the nth term of a sequence.

If you use the TI-Nspire graphic display calculator here are instructions for using the Finance Solver.

How do you teach this topic? Do you have any tips or suggestions for other teachers? It is always useful to receive feedback and helps make these free resources even more useful for Maths teachers anywhere in the world. Click here to enter your comments.