Savings

Maths

Finance

If you saved £300 a month, how long would it take you to save £9,600?

Simple interest is the interest that accrues upon the initial amount borrowed (or saved), and the interest, as times goes on.

Compound interest is the interest that accrues upon the initial amount borrowed. It is a fixed sum every year (or other time period).

If I saved £5,000 with Oak National Bank at a compound interest rate of 7% for 9 years, how much would I have, rounded to the nearest penny, at the end of the 9 years?

When you save money, you want a low interest rate.

A mortgage is a debt that must be repaid, with interest, as a result of purchasing a house.

If you had a mortgage, you would prefer to have a high interest rate.

If I borrowed £100,000 in the form of a mortgage at a rate of 4% per year interest for 5 years, how much would I pay back at the end? (Assume compound interest, no payments made until the end and the answer is rounded to the nearest pound).

If I borrowed £350,000 in the form of a mortgage at a rate of 3.2% per year interest for 20 years, how much would I pay back at the end? (Assume compound interest, no payments made until the end and the answer is rounded to the nearest pound).

£120,000 mortgage that had a rate of 3% for 25 years

£200,000 mortgage that had a rate of 0.5% for 35 years

Which would cost more? A £200,000 mortgage that had a rate of 0.5% for 35 years or a £120,000 mortgage that had a rate of 3% for 25 years?

This lesson will be removed by end of Summer Term 2025.

Savings

Lesson outcome

This lesson will be removed by end of Summer Term 2025.