Demystifying - Compound interest

Drills

Interest paid on the balance, so each year's interest earns interest itself.

Author note — to cover

Cover compound interest year by year: interest earned on the growing balance, tabulating balances over two or three years, and the contrast with simple interest's flat additions. Small n by repeated multiplication only; the one-step power formula is the sibling page. Simple interest itself lives under Percentage change. Both tiers, since R16 does not brace compound interest. (R16, R9)

  • Fluency — direct questions on compound interest, 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 Compound interest.