Starter (Simple Interest)
Write down the formula for calculating simple interest.
I= (PRT)/100
Write down the formula for calculating compound interest.
A=P(1+r/100)t
Find the simple interest on £500 invested at a rate of 6% per year for 3 years.
£90
Find 25% of $160.
$40
How do we write the mathematical symbol for Pi?
π
What does "I", "P", "R", "T" represent in the formula for simple interest?
I=Interest, P=Principal, R= Rate of interest, T=time
Identify the P, r and t in this question: "£3,000 is invested in an account that pays 3% compound interest per annum. How much will be in the account after 4 years?"
P = £3,000, r = 3, t = 4
A loan of £2,000 is taken with a simple interest rate of 7% per year. After 4 years, how much must be repaid in total?
£2560
A TV originally costs £300. It is on sale with a 20% discount. What is the new price?
£240
What is the approximate value of Pi to two decimal places?
3.14
A bank offers 3% simple interest per year. How much interest is earned on $600 after 4 years?
$72
£3,000 is invested in an account that pays 3% compound interest per annum. How much will be in the account after 4 years
£3,376.53
A person earns £450 in simple interest after 5 years at an annual rate of 6%. How much was the initial investment?
£1,500
A shop increases its prices by 15%. A jacket originally cost £80. What is the new price?
£92
Is Pi a rational or an irrational number? Why?
Pi is an irrational number because it can't be written in fraction form.
If £500 earns £200 in interest at a rate of 5% per year, how many years was the money invested for?
8 years
A car's value depreciates by 12% per year. If its original price was £15,000, what will it be worth after 2 years?
£11616
Give 1 real world application of Compound Interest.
Population growth, Bacteria growth, Covid-19, Followers on social media, Compound interest in saving accounts
After a 10% price increase, a laptop costs £990. What was its original price?
£900
What is the formula for the circumference of a circle using Pi?
Circumference = 2πr or πd
£5,200 is invested into an account that pays simple interest annually. After 8 years, there is £6,240 in the account. At what rate does the account pay simple interest?
2.5%
After 4 years, an investment grows to £2,916.16 under a compound interest rate of 8% per year. What was the initial investment?
£2143.46
Albany Bank pays 3.4% simple interest annually. Bowman Bank pays 0.8% simple interest quarterly.£1,100 is invested into an account at each bank. In which bank is the investment worth more after 7 years? How much more?
Albany Bank, £15.40
A population of 50,000 people increases by 5% each year. What will the population be after 2 years?
55125
What is Pi? (Definition - meaning)
Pi (π) is the ratio of a circle’s circumference to its diameter.