Simple interest calculations with technology
Lesson details
Learning outcome
I can carry out simple interest calculations with a calculator.
Key learning points
- Calculators are very useful here as they can be programmed efficiently.
- This saves time and can reduce error.
- It is also quick to reverse the process to find the original amount.
- The use of a multiplier ensures greater efficiency.
Keywords
Simple interest - Interest is money added to savings or loans. Simple interest is always calculated on the original amount
Compound interest - Compound interest is the interest calculated on the original amount and the interest accumulated over the previous period.
Common misconception
A single digit percentage is incorrectly worked out by dividing by 10 and not 100 e.g 3% = 0.3, e.g. 0.54% = 0.054
Dividing the percentage by 100 gives the decimal equivalent i.e 0.54% = 0.0054
Teacher tip
If pupils had £x in their bank account, what simple interest rate (<6%) per year and number of years would be needed to double this amount? This allows pupils to understand the product of the rate and years needing to be 1. For a challenge, give examples of S.I and years for tripling the amount.
Licence
Lesson video
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Prior knowledge starter quiz
6 Questions
Q1.If I increase £45 to £126, what is the percentage gain?
Q2.Find 52% of 800
Q3.A data analyst celebrates his investment increasing by 14% which is now worth £1094.40. How much did he originally invest?
Q4.Increase 11 by 15%
Q5.If I decrease £48 to £12, what is the percentage loss?
Q6.If I increase £75 to £97.50, what is the percentage gain?
Assessment exit quiz
6 Questions
Q1.What is the amount of simple 1.3% interest earned on an investment of £400 over 6 years?
Q2.What is the amount of simple 1.6% interest earned on an investment of £500 over 4 years?
Q3.What is the amount of simple 2.8% interest earned on an investment of £638 over 10 years?
Q4.What is the amount of compound 2.8% interest earned on an investment of £638 over 10 years?
Q5.What is the amount of compound 4.9% interest earned on an investment of £230 over 8 years (to 2 d.p.)?
Q6.What is the amount of compound 2.3% interest earned on an investment of £1000 over 20 years (to 2 d.p.)?
To help you plan your 10 maths lesson on: Simple interest calculations with technology, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your 10 maths lesson on: Simple interest calculations with technology, download all teaching resources for free and adapt to suit your pupils' needs.
The starter quiz will activate and check your pupils' prior knowledge, with versions available both with and without answers in PDF format.
We use learning cycles to break down learning into key concepts or ideas linked to the learning outcome. Each learning cycle features explanations with checks for understanding and practice tasks with feedback. All of this is found in our slide decks, ready for you to download and edit. The practice tasks are also available as printable worksheets and some lessons have additional materials with extra material you might need for teaching the lesson.
The assessment exit quiz will test your pupils' understanding of the key learning points.
Our video is a tool for planning, showing how other teachers might teach the lesson, offering helpful tips, modelled explanations and inspiration for your own delivery in the classroom. Plus, you can set it as homework or revision for pupils and keep their learning on track by sharing an online pupil version of this lesson.
Explore more key stage 4 maths lessons from the Percentages unit, dive into the full secondary maths curriculum, or learn more about lesson planning.