The video ends with some practice questions and answers. After 8 years the total value of the investment was. Level 3 mathematical studies core maths key stage 3. Cumulative increase and decrease compound interest. They are classified as functional maths, meaning that you might use this type of calculation in real life. Nov 15, 2017 this video is all about compound interest and forms part of the playlist on how to work with compound interest. Passing n5 maths significantly increases your career opportunities by helping you gain a place on a college course, apprenticeship or even landing a job. It covers how to approach calculator and noncalculator questions. Lets study together does not own this pdf, neither created nor scanned. Simple and compound interest aer worksheet answers 2 download file 318. So the next year the interest is worked out on a larger amount of money than what was originally borrowed. Write a compound interest function to model the situation.
May 19, 2016 however, if theres interest in an alternate version with an example resonance structure shown for each ion, then i can probably make that happen. And that makes teaching compound interest easier for you. Then find the balance after the given number of years. So, instead of adding the percentage on to your 100%, you take away the percentage instead. A collection of 91 maths gcse sample and specimen questions from aqa. Sep 05, 2017 80 compound interest pdf extras ratio proportion 4 1504802198 d025d4d8deeeb6020a41b558c04a63b6 72eef302b7b3df3cb96ac6867582b660f77bd9dcc325ee05f5945a661bcdf9fd. Learn about and revise how to calculate percentages to solve real life problems, such as compound interest, with this bbc bitesize gcse edexcel guide. Step by step, by studying example maths questions, activities and maths works. In the above example, if it were a 3% simple interest rate as opposed to a compound interest rate, then the interest you would earn each year would remain at. With compound interest, you work out the interest for the first period, add it to the total, and then calculate the interest for the next period, and so on. Jan 10, 2018 gcse revision simple and compound interest there are four worksheets each with a hard exam style simple and compound interest comparison word problem and a further worksheet with 6 questions. The savings account pays compound interest at a rate of 4. A business declares that, in each year, its office equipment depreciates at the rate of 18% of its value at the beginning of that year.
Here the interest is added to the principal at the end of each year. With simple interest the amount of interest is fixed over a period of time. Pupils are going to be more engaged in lessons that apply to reallife situations. Its important to note with simple interest the amount earned will stay the same every year. Subtract the principal if you want just the compound interest. Covers all aspects of the gcse91 syllabus but presuming a basic knowledge of what a percentage is, including a find a percentage of a value or a value after a percentage change, using decimal multipliers. Round your answers to the nearest pound where necessary. Basically, the two major criteria to setting interest rates are the riskiness of the investment and what rate is commonly. A common application of exponential growth is compound interest. If i intend to leave my money on my account for five years, would i rather receive simple or compound interest. The sum lent is called the principal the sum of the principal and interest is called the amount. Just use the future value formula with n being the number of months. Do well on your igcse gcse maths exam and let help you with your maths revision. Edexcel gcse mathematics linear 1ma0 compound interest and depreciation materials required for examination items included with question papers ruler graduated in centimetres and nil millimetres, protractor, compasses, pen, hb pencil, eraser.
For example, 4000 dollars is deposited into a bank account and the annual interest rate is 8%. Compound interest practice questions click here for questions. If you dont pay off any of the loan in 4 years, how much would you. Whats the difference between simple and compound interest, anyway. Compound growth and decay worksheets questions and revision. The selection covers all of the ions gcse students are likely to come across, as well as the vast majority of those that will be encountered by a level students. As the principal grows, the rate at which you earn interest grows as well, because you are earning interest on interest. Solving compound interest problems to solve compound interest problems, we need to take the given information at plug the information into the compound interest formula and solve for the missing variable. Jim finds out that his car will depreciate by 18% a year. Maths genie revision compound interest and depreciation. Recall that simple interest is earned or paid only on the principal.
If simple interest is paid, interest is calculated only on the principal. Previous increasingdecreasing by a percentage practice questions. Simple and compound interest, this section of revision maths explains the difference between simple and compound interest and how to calculate them. Jun 19, 2014 this video shows you how to calculate compound interest and looks at exam style questions.
Compound interest is interest paid both on the original principal and. Understand how to calculate compound interest and pass your maths exams. Priya invests a sum of money at an interest rate of 8% per year. Compound interest using a formula questions are fairly popular on gcse mathematics papers, usually around question 10, in the middle of the paper. An index of all the infographics posted on the site just click the desired section to go to the relevant page, and see all graphics posted to that category. Compound depreciation is almost the same as compound interest, except for one thing. A collection of 91 maths gcse sample and specimen questions from aqa, ocr, pearsonedexcel and wjec eduqas. Gcse aqa, ocr, edexcel gcse maths compound, simple interest and depreciation questions name. Mathematics linear 1ma0 compound interest and depreciation. Compound and simple interest rates gcse maths revision. Gcse revision simple and compound interest teaching. The corbettmaths video tutorial on compound interest. Compound interest is not always calculated per year, it could be per month, per day, etc.
Compound interest video compound interest practice. As far as the ions included go, there are obviously some that miss out and arent included, but ive tried to make these ones that wouldnt normally be encountered by school chemistry. Interest is the fixed amount paid on borrowed money. Simple vs compound interest is not hard to understand. These are topics thatll be relevant for pretty much all of your class in the future. We receive interest when we let others use our money for example, by depositing money in a savings account or making a loan. Simple and compound interest percentages edexcel gcse.
How much will mary have in her account after 5 years. Gcse revision simple and compound interest teaching resources. Interest is a sum of money that gets added on to a bigger sum of money e. Its important to have at least a basic understanding of how a company or bank determines the interest rate you earn on your money on deposit. Gcse applications in mathematics 2 edexcel gcse chemistry c1 18th may 2017. Gcse maths 8300 gcse statistics 8382 alevel maths and further maths. Basically, simple interest is interest paid on the original principal only while compound interest is interest paid not only on the principal, but also on the interest previously earned. How much interest would you have earned after 3 years.
To calculate the amount of simple interest over 5 years you simply multiply the interest earnt in year one by five. The most typical example of compound growth is compound interest. Fixed rate has been calculated as simple interest and it states it is compound interest. This video is all about compound interest and forms part of the playlist on how to work with compound interest. And these compound interest and depreciation worksheets acknowledge that. Calculate the total amount sebastian has in the bank at the end of. Compound interest working out the number of years gcse.
Calculate the value of his investment, correct to the nearest penny. Compound interest is the type of interest that is more normally paid out by banks to savers. This resource can be printed in colour or black and white. How to work out compound interest using a formula gcse maths. Compound interest is interest earned or paid on both the principal and previously earned interest.
For each question it is assumed no money is withdrawn or deposited into the account after the original deposit. Calculate the value of his investment, correct to the nearest penny, at the end of the 3 years. Simple and compound 8 interest interest is the fee paid for borrowed money. Compound interest means that each time interest is paid onto an amount saved or owed, the added interest also receives interest from then on. Simple and compound interest extension worksheet answers 3 download file 220. Compound interest how to calculate compound interest. Put simply, compound interest changes the amount of money in the bank each time and a new calculation has to be worked out. Compound interest, or interest on interest, is calculated with the compound interest formula.
The amount of interest added is determined by a percentage value of the bigger sum. To answer this question you begin by working out 5% of. Conclusion is correct but the comparable figures that would support it are wrong. Lesson 2 compound interest an investment earns compound interest when the interest from each time period is added to the principal, and then earns interest in the following time periods. Give the difference in the interest to the nearest penny. Multiply the principal amount by one plus the annual interest rate to the power of the number of compound periods to get a combined figure for principal and compound interest. Next percentages of an amount calculator practice questions. Simple interest is interest paid only on the original principal, and not on any interest added at later dates. Your pupils will complete financial calculations relating to cars, properties and savings. Gcse maths revision compound and simple interest and. Percentages edexcel revision 1 gcse maths bbc bitesize. Gcse revision simple and compound interest there are four worksheets each with a hard exam style simple and compound interest comparison word problem and a further worksheet with 6 questions.
The sum of the principal and interest is called the amount. Maths revision video and notes on the topic of compound interest and depreciation. Calculate the amount sarah has in her account after 4 years. Past paper exam questions organised by topic for edexcel gcse maths. Simple versus compound interest simple interest and compound interest the principal in.
At the end of one year, the interest she receives is 1800 rupees. For your gcse maths exam you need to know about two different types of interest rates, simple interest and compound interest. This video shows you how to calculate compound interest and looks at exam style questions. The account pays compound interest at an annual rate of 6. Simple interest is where the amount of interest earned is fixed over time. You may wish to read introduction to interest first. This video explains how to answer compound interest questions. Apr 30, 2016 compound interest using a formula questions are fairly popular on gcse mathematics papers, usually around question 10, in the middle of the paper. How to calculate simple and compound interest dummies. Other results for edexcel gcse percentages answers. Compound interest gcse maths tutorials, revision and. The method used to solve the problem will depend on what we are trying to find.