Demystifying - The compound interest formula

Drills

Raising the multiplier to the number of years to reach the balance in one step.

Author note — to cover

Cover the closed form, final amount equals principal times the multiplier to the power n: identifying principal, rate and n from wordy questions, decimal-rate care (2.5% gives 1.025), and interest earned versus final balance. Finding n belongs to finding-how-long; extracting an unknown rate by nth roots leans Higher and should be flagged as such. Both tiers. (R16, R9)

  • Fluency — direct questions on the compound interest formula, limited to this lesson's stated scope (4 questions).
  • Application — use the same skill in unfamiliar or contextual questions without introducing a later method (4 questions).
  • Check — questions built around the exclusions and likely misconceptions named in the lesson brief (4 questions).

The test

—coming soon—

Where to go next

The method this drill practises is taught on The compound interest formula.