Year 10 - Maths
Simple and compound interest
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 appreciate the difference between simple interest and compound interest.
Key Notes
- Repeated percentage change occurs in real-life.
- Simple interest is calculated once and then added repeatedly.
- Compound interest is recalculated at each stage.
- By considering the calculations for compound interest, you can be more efficient.
- Calculators can simplify this process even further.
Vocabulary To Learn
- 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.
Common Mistakes To Avoid
- 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.
3 Quick Questions (With Answers)
1. Solve this in steps: explain the method from this lesson and why each step matters.
Repeated percentage change occurs in real-life. Simple interest is calculated once and then added repeatedly.
2. Use this key word in a maths sentence and explain it clearly. 'Simple interest'
Interest is money added to savings or loans. Simple interest is always calculated on the original amount. Use this word when showing your method, then check your final answer is reasonable.
3. Spot and fix this common maths mistake.
Mistake: 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. Correction: 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.
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 Study Guide
- Compound interest calculations with technology Study Guide
- Percentage profit and loss Study Guide
- Problem solving with percentages Study Guide
- Simple interest calculations Study Guide
- Simple interest calculations with technology Study Guide
Browse all guides in the Year 10 Maths guide library.