Transum Software

Interest

Practise calculating simple interest and compound interest on investments and loans.

  Menu   Compare Level 1 Level 2 Level 3 Level 4 Level 5 Level 6   AI   Exam Help More

This is level 1; Investments earning simple interest. Give your first nine answers to two decimal places. You can earn a trophy if you get at least 9 correct and you do this activity online.

Find the amount of interest earned if...

...£480 is invested at 5% pa simple interest for 7 years.

£ Correct Wrong

...$850 is invested at 5% pa simple interest for 11 years.

$ Correct Wrong

...€379 is invested at 3% pa simple interest for 7 years.

Correct Wrong

Find the total amount available if ...

...£770 is invested at 3% pa simple interest for 10 years.

£ Correct Wrong

...$830 is invested at 4% pa simple interest for 17 years.

$ Correct Wrong

...€291 is invested at 3% pa simple interest for 16 years.

Correct Wrong

How many years would it take for ...

...£560.00 to be accrued after £500 is invested with 2% pa simple interest.

Years: Correct Wrong

...$8153.40 to be accrued after $7620 is invested with 1% pa simple interest.

Years: Correct Wrong

...€469.50 to be accrued after €313 is invested with 5% pa simple interest.

Years: Correct Wrong

What was the initial amount invested if...

...£113.30 is accrued after 3 years invested with 1% pa simple interest.

£ Correct Wrong

...$13216.00 is accrued after 12 years invested with 5% pa simple interest.

$ Correct Wrong

...€480.76 is accrued after 19 years invested with 1% pa simple interest.

Correct Wrong

Check

This is Interest level 1. You can also try:
Level 2 Level 3 Level 4 Level 5 Level 6 Level 7

Instructions

Try your best to answer the questions above. Type your answers into the boxes provided leaving no spaces. As you work through the exercise regularly click the "check" button. If you have any wrong answers, do your best to do corrections but if there is anything you don't understand, please ask your teacher for help.

When you have got all of the questions correct you may want to print out this page and paste it into your exercise book. If you keep your work in an ePortfolio you could take a screen shot of your answers and paste that into your Maths file.

Why am I learning this?

Mathematicians are not the people who find Maths easy; they are the people who enjoy how mystifying, puzzling and hard it is. Are you a mathematician?

Comment recorded on the 9 October 'Starter of the Day' page by Mr Jones, Wales:

"I think that having a starter of the day helps improve maths in general. My pupils say they love them!!!"

Comment recorded on the 28 May 'Starter of the Day' page by L Smith, Colwyn Bay:

"An absolutely brilliant resource. Only recently been discovered but is used daily with all my classes. It is particularly useful when things can be saved for further use. Thank you!"

Each month a newsletter is published containing details of the new additions to the Transum website and a new puzzle of the month.

The newsletter is then duplicated as a podcast which is available on the major delivery networks. You can listen to the podcast while you are commuting, exercising or relaxing.

Transum breaking news is available on Twitter @Transum and if that's not enough there is also a Transum Facebook page.

Featured Activity

Newsletter

Newsletter

The Transum Newsletter for December 2024 has just been published. Click on the image above to read about the latest developments on this site and try to solve the puzzle of the month. You can read the newsletter online or listen to it by downloading the podcast.

Answers

There are answers to this exercise but they are available in this space to teachers, tutors and parents who have logged in to their Transum subscription on this computer.

A Transum subscription unlocks the answers to the online exercises, quizzes and puzzles. It also provides the teacher with access to quality external links on each of the Transum Topic pages and the facility to add to the collection themselves.

Subscribers can manage class lists, lesson plans and assessment data in the Class Admin application and have access to reports of the Transum Trophies earned by class members.

If you would like to enjoy ad-free access to the thousands of Transum resources, receive our monthly newsletter, unlock the printable worksheets and see our Maths Lesson Finishers then sign up for a subscription now:

Subscribe

Go Maths

Learning and understanding Mathematics, at every level, requires learner engagement. Mathematics is not a spectator sport. Sometimes traditional teaching fails to actively involve students. One way to address the problem is through the use of interactive activities and this web site provides many of those. The Go Maths page is an alphabetical list of free activities designed for students in Secondary/High school.

Maths Map

Are you looking for something specific? An exercise to supplement the topic you are studying at school at the moment perhaps. Navigate using our Maths Map to find exercises, puzzles and Maths lesson starters grouped by topic.

Teachers

If you found this activity useful don't forget to record it in your scheme of work or learning management system. The short URL, ready to be copied and pasted, is as follows:

Alternatively, if you use Google Classroom, all you have to do is click on the green icon below in order to add this activity to one of your classes.

It may be worth remembering that if Transum.org should go offline for whatever reason, there is a mirror site at Transum.info that contains most of the resources that are available here on Transum.org.

When planning to use technology in your lesson always have a plan B!

Transum,

Tuesday, September 10, 2024

"As a rough, 'rule of thumb' for compound interest, divide 72 by the percentage interest rate and you’ll have a great estimate for the number of years required for your investment to double in value."

Do you have any comments? It is always useful to receive feedback and helps make this free resource even more useful for those learning Mathematics anywhere in the world. Click here to enter your comments.

Transum.org is a proud supporter of the kidSAFE Seal Program

© Transum Mathematics 1997-2024
Scan the QR code below to visit the online version of this activity.

This is a QR Code

https://www.Transum.org/go/?Num=506

Description of Levels

Close

Close

Percentages - Before starting the Interest exercise make sure you are confident finding percentages of quantities.

Compare: - A table to be filled in Comparing the results of investing with simple interest against the results of investing with compound interest.

Level 1 - Investments earning simple interest

Level 2 - Investments earning compound interest

Level 3 - Loans accruing compound interest

Level 4 - Appreciation and depreciation

Level 5 - Interest calculated half-yearly, quarterly or monthly

Level 6 - Additional payments made during the investment period

Level 7 - Artificial intelligence generated questions

Overdraft Charges - Do you understand how your bank charges you for taking out an overdraft?

Amortisation and Annuities - An exercises containing problems about gradually paying off loans and calculating pension plans.

Exam Style Questions - A collection of problems in the style of GCSE or IB/A-level exam paper questions (worked solutions are available for Transum subscribers).

More on this topic including lesson Starters, visual aids, investigations and self-marking exercises.

Answers to this exercise are available lower down this page when you are logged in to your Transum account. If you don’t yet have a Transum subscription one can be very quickly set up if you are a teacher, tutor or parent.

Log in Sign up

Curriculum Reference

See the National Curriculum page for links to related online activities and resources.

Simple Interest Formulas

$$\text{Interest earned} = P \times \frac{r}{100} \times n$$
$$\text{Final amount} = P + P \times \frac{r}{100} \times n$$

\(P\) is the principal, the amount originally invested.

\(r\) is the rate of interest expressed as a percentage.

\(n\) is the number of years the amount was invested for.

Don't wait until you have finished the exercise before you click on the 'Check' button. Click it often as you work through the questions to see if you are answering them correctly. You can double-click the 'Check' button to make it float at the bottom of your screen.

Answers to this exercise are available lower down this page when you are logged in to your Transum account. If you don’t yet have a Transum subscription one can be very quickly set up if you are a teacher, tutor or parent.

Log in Sign up

Close

Close