Starter quiz
- Which statement is the equivalent of "Increase 76 by 30%"?
- Find 130% of 76 ✓
- Find 30% of 76
- Find 70% of 76
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- If I increase £90 to £99, what is the percentage gain?
- '10' ✓
- If you invest £500 for three years and receive 2% simple interest each year, how much will you have at the end?
- '530' ✓
- If I increase £70 to £86.10, what is the percentage gain?
- '23' ✓
- Which statement is the equivalent of "Decrease 130 by 40%"?
- Work out 40% of 130
- Divide 130 by 40
- Work out 60% of 130 ✓
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- If I increase £80 to £86.40, what is the percentage gain?
- '8' ✓
Exit quiz
- If I invest £400 over 3 years at 2% interest, I have £424. Is this simple or compound interest?
- simple ✓
- compound
- it could be either
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- If I invest £600 over 2 years at 2.5% interest, I have £630.38. Is this simple or compound interest?
- simple
- compound ✓
- it could be either
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- If I invest £1500 over 5 years at 1.9% interest, I have £1642.50. Is this simple or compound interest?
- simple ✓
- compound
- it could be either
-
- If I invest £10 over 2 years at 4% interest, I have £10.80. Is this simple or compound interest?
- simple ✓
- compound
- it could be either
-
- If I invest £46.21 over 1 year at 4% interest, I have £48.06. Is this simple or compound interest?
- simple
- compound
- it could be either ✓
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- Which investment results in more money at the end: an investment of £30 at a rate of 2% simple interest for 4 years, or £30.50 at a rate of 3.5% compound interest for 2 years?
- The simple interest investment produces more money.
- The compound interest investment produces more money. ✓
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Worksheet
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Presentation
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Lesson Details
Key learning points
- Simple interest is calculated once and then added repeatedly.
- By considering the calculations for simple interest, you can be more efficient.
- Through understanding the structure, you can reverse the calculations to find the original amount.
Common misconception
Pupils should pay careful attention to what the question asks. Working out the overall amount after a simple or compound increase is different to working out the total interest only.
Pupils can underline or highlight the key instruction to the question e.g. Total amount or total interest, to remind them of the need to subtract from the original amount or not.
Keywords
Rate of interest - The rate of interest is the percentage by which an amount increases
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.
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