Demystifying - Simple versus compound interest

Drills

Why the same rate pays differently under the two schemes, and the widening gap.

Author note — to cover

Cover the two interest schemes side by side: same principal and rate tabulated year by year, which pays more, why the gap widens, and exam questions asking for the difference after n years. Calculation methods are assumed from simple-interest and repeated-change; the compound formula and its decay twin live in Growth and decay. Both tiers. (R9, R16)

  • Fluency — direct questions on simple versus 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 Simple versus compound interest.