How do you work out compound interest?

  1. Check whether student can calculate simple interest, e.g. How much money would you have after 1 year if you have £50 and get 3% interest? (Ans: 50*1.03 = 51.50)

  2. Once this is understood get them to calculate what the interest would be after two years, i.e. 51.50*1.03 = 53.045.

  3. Point out that this is 501.03^2, so in general after n years you have 501.03^n.  Do example question with n~5 to consolidate.

Answered by Joanna W. Maths tutor

2785 Views

See similar Maths GCSE tutors

Related Maths GCSE answers

All answers ▸

Find the equation of the line passing through the point ( 2, −3) which is parallel to the line with equation y + 4x = 7


3/5 of a number is 162. Work out the number.


There are 5 blue counters and 5 red. x takes 2 counters out of the bag without replacing them. What is the probability x took 2 red counters.


Write 36 as a product of its prime factors giving the answer in index form.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy
Cookie Preferences