Year 10 - Maths
Compound interest calculations
Percentages
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This pupil-friendly study guide includes a unit summary, clear notes, common mistakes, and quick questions with answers.
Unit Summary
In this unit pupils will learn how to perform simple and compound interest calculations using percentages.
Lesson Summary
You will learn to carry out compound interest calculations.
Key Notes
- Compound interest is recalculated at each stage.
- By considering the calculations for compound interest, you can be more efficient.
- Through understanding the structure, you can reverse the calculations to find the original amount.
- Calculators are very useful here as they can be programmed efficiently.
Vocabulary To Learn
- Compound interest: Compound interest is the interest calculated on the original amount and the interest accumulated over the previous period.
Common Mistakes To Avoid
- Failing to understand the difference between simple and compound interest. And, therefore finding the interest for one time period and multiplying it by the number of time periods.
3 Quick Questions (With Answers)
1. Solve this in steps: explain the method from this lesson and why each step matters.
Compound interest is recalculated at each stage. By considering the calculations for compound interest, you can be more efficient.
2. Use this key word in a maths sentence and explain it clearly. 'Compound interest'
Compound interest is the interest calculated on the original amount and the interest accumulated over the previous period. Use this word when showing your method, then check your final answer is reasonable.
3. Spot and fix this common maths mistake.
Mistake: Failing to understand the difference between simple and compound interest. And, therefore finding the interest for one time period and multiplying it by the number of time periods. Correction: Pupils can forget to transfer the year end balance as the starting balance of the next year. Using repeated language can help. E.g. "At the end of year 2 there was ... in the account, so, at the beginning of year 3 there was ... in the account.".
More Lessons In This Unit
- Advanced problem solving with percentages Study Guide
- Calculating compound interest rates Study Guide
- Changing compound interest rates Study Guide
- Checking and securing understanding of finding a percentage Study Guide
- Checking and securing understanding of percentage decrease Study Guide
- Checking and securing understanding of percentage increase Study Guide
- Compound interest calculations with technology Study Guide
- Percentage profit and loss Study Guide
- Problem solving with percentages Study Guide
- Simple and compound interest Study Guide
- Simple interest calculations Study Guide
- Simple interest calculations with technology Study Guide
Browse all guides in the Year 10 Maths guide library.