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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.

License

Icon for the Creative Commons Attribution 4.0 International License

National Curriculum (Vocational) Mathematics Level 3 by Department of Higher Education and Training is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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