Interest is money added to savings or loans. Simple interest is always calculated on the original amount.

Compound interest is calculated on the original amount and the interest accumulated over the previous period.

Checking and securing understanding of compound interest calculations

Maths

Building on composite functions

Evaluating iterative formulas

Approximating solutions to equations

Signs of a solution

Problem solving with iteration

In this unit, pupils continue to explore composite functions, thereby building on their work from the prior unit. Pupils need to understand function notation from the prior unit as this is used in iteration.

In this unit, pupils continue to explore composite functions and develop understanding of iteration, building on their work on functions and proof.

Iteration

$$£250+(0.02\times250)+(0.02\times250)+(0.02\times250)$$ is an example of a __________ interest calculation.

$$£250\times1.02^3$$ is an example of a __________ interest calculation.

$$£400$$ is invested at a rate of $$4.2$$% interest for $$5$$ years. What multiplier would we use in a compound interest calculation?

$$£400$$ is invested at a rate of $$4.2$$% interest for $$5$$ years. The values at the end of each year will form __________ sequence.

$$£400$$ is invested at a rate of $$4.2$$% interest for $$5$$ years. What is the value of the investment at the end of the $$5$$ years? $$£$${{}}

$$£500$$ is put into a savings account at a rate of $$4$$% compound interest p.a. After how many years will the investment reach $$£1000$$? {{}}

When money is added to savings or loans it is called...

$$12$$% of $$800$$ is {{}}. You may use a calculator.

$$800$$ increased by $$12$$% is __________. You may use a calculator.

$$7\times7\times7\times7\times7$$ simplifies to...

Which of the below will affect an increase of $$2.5$$%?

An amount increased by $$20$$% then increased by $$10$$% will experience an overall increase of {{}}%

Checking and securing understanding of compound interest calculations

Lesson outcome