GCSE Secondary Maths Age 13-17 - Ratio, Proportion & Rates of Change: Simple Interest - Explained

The video tutorial explains how Abi invests 500 pounds for four years in a bank account with a simple interest rate of 2.3% per year. It details the process of calculating the interest for one year and then multiplying it by four to find the total interest over the four years. The tutorial also discusses the difference between simple and compound interest and provides a breakdown of the marks awarded for solving the problem.

What is the initial amount Abi invests in the bank account?

• 700 pounds

• 600 pounds

• 500 pounds

• 400 pounds

What is the interest rate per year for Abi's investment?

• 2.5%

• 2.3%

• 2.0%

• 3.0%

How is simple interest calculated for one year?

• By subtracting the interest rate from the principal

• By adding the interest rate to the principal

• By multiplying the interest rate by the principal

• By dividing the interest rate by the principal

What is the interest amount for one year on Abi's investment?

• 12.50 pounds

• 11.50 pounds

• 13.50 pounds

• 10.50 pounds

What is the total simple interest earned by Abi after four years?

• 45 pounds

• 44 pounds

• 47 pounds

• 46 pounds