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Simple and compound interest

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Simple and compound interest

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See how well you know rules around finding simple and compound interest. you must chose the most appropriate word from the list provided.

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About Fill in the Blanks
mathematics
 Recommended age: 13 years old
54 times made

Created by

Su Coutts
Su Coutts
New Zealand

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Simple and compound interestOnline version

See how well you know rules around finding simple and compound interest. you must chose the most appropriate word from the list provided.

by Su Coutts
1

end new reward result years Monthly careful $5000 multiply 100 power percentages 5% convert percentage add

Calculating simple and compound interest is just an extension on . Interest can be a you get for keeping your money in a bank .

To find a percentage of an amount , you must the amount by the percentage .

When using a calculator to calculate percentages you must be very . You have to remember to either the percentage into a decimal OR use the button on the calculator .

So , to calculate simple interest you must multiply the amount by the percentage , by the number of you get the interest for .

Interest that compounds yearly is the type of calculations we do at this level . compounding interest is a different level . To calculate yearly compounding interest :

1 ) You must the percentage on to 100% . EG the percentage is 0 . 5% . 100% + 0 . 5% is .

2 ) Once you do this you multiply your percentage by itself the same number of times as there are years . OR you raise the to the number of years there are . EG 0 . 5% compounding yearly for 5 years , means 100 . 5% x 100 . 5% x 100 . 5% x 100 . 5% x 100 . 5% OR ( 100 . 5% ) ^5

3 ) Now you multiply your from 2 ) by your amount . EG calculate how much money you have at the of five years if you have $5000 in the bank that earns 0 . 5% per year , compounding yearly for 5 years . x ( 100 . 5% ) ^ 5

 
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