Financial mathematics: Use simple and compound interest to explain and define a variety of situations

Subject outcome
Subject outcome 5.2: Use simple and compound interest to explain and define a variety of situations.

Learning outcomes
- Construct and make use of timelines to solve problems relating to finance.
- Use the simple growth formula A=P(1+i.n) to solve real life problems.
- Use the compound growth formulae A=P(1+i)n or At=A0(1+r100×m)t×m to solve problems subject to the following compounding:
- annually
- semi-annually
- quarterly
- monthly
- daily.
Range: unknown values to calculate will only include A,P and i.

Unit 1 outcomes
By the end of this unit you will be able to:
- Use the simple growth formula to solve problems related to finance.
- Solve for A,P,i and n using the simple interest formula.

Unit 2 outcomes
By the end of this unit you will be able to:
- Use the compound growth formula (or compound interest formula) to solve problems related to finance.
- Solve for A,P and i using the compound interest formula.

Unit 3 outcomes
By the end of this unit you will be able to:
- Interpret financial questions using timelines.