Related Topics:

More Lessons for GCSE Maths

Math Worksheets

A collection of videos to help GCSE Maths students learn how to calculate compound interest.

The following diagram gives the Compound Interest Rate Formula where the interest is compounded once per year. Scroll down the page for more examples and solutions.

Compound interest

Examples:

1. Dan has £6,000 in his bank account. His bank account pays compound interest at a rate of 4% per year. How much will Dan have after 3 years?

2. Dan has £5,489.23 in his bank account at 1 Jan 2015. His bank account pays compound interest at a rate of 2.89% per year. How much will Dan have after 3 years?

3. Sarah wants to invest £3,000 for 3 years in the same bank. The Big Bank pays 4% for the first year and 1% each year after. The Big Bank pays 5% for the first year and 0.5% each year after. At the end of 3 years, Sarah wants as much money as possible. Which bank should she invest her £3,000 in?

How to work out compound interest?
GCSE Unit 1 Compound and Simple Interest

You can use the free Mathway calculator and problem solver below to practice Algebra or other math topics. Try the given examples, or type in your own problem and check your answer with the step-by-step explanations.

More Lessons for GCSE Maths

Math Worksheets

A collection of videos to help GCSE Maths students learn how to calculate compound interest.

The following diagram gives the Compound Interest Rate Formula where the interest is compounded once per year. Scroll down the page for more examples and solutions.

Compound interest

Examples:

1. Dan has £6,000 in his bank account. His bank account pays compound interest at a rate of 4% per year. How much will Dan have after 3 years?

2. Dan has £5,489.23 in his bank account at 1 Jan 2015. His bank account pays compound interest at a rate of 2.89% per year. How much will Dan have after 3 years?

3. Sarah wants to invest £3,000 for 3 years in the same bank. The Big Bank pays 4% for the first year and 1% each year after. The Big Bank pays 5% for the first year and 0.5% each year after. At the end of 3 years, Sarah wants as much money as possible. Which bank should she invest her £3,000 in?

Rotate to landscape screen format on a mobile phone or small tablet to use the **Mathway** widget, a free math problem solver that **answers your questions with step-by-step explanations**.

You can use the free Mathway calculator and problem solver below to practice Algebra or other math topics. Try the given examples, or type in your own problem and check your answer with the step-by-step explanations.

We welcome your feedback, comments and questions about this site or page. Please submit your feedback or enquiries via our Feedback page.

[?] Subscribe To This Site