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

The video tutorial explains how to solve a compound interest problem where the interest rate is unknown. Starting with an initial investment of £6000, the goal is to find the interest rate that results in a final amount of £8029.35 after five years. The instructor sets up an equation using the compound interest formula, solves for the interest rate by taking the fifth root, and concludes with the final answer. The tutorial emphasizes the importance of following systematic steps and not worrying about long answers.

What is the initial amount of money invested in the problem?

• £8029.35

• £5000

• £6000

• £7000

How many years is the investment period in the problem?

• 3 years

• 6 years

• 4 years

• 5 years

What is the value of 1.338225 in the context of the problem?

• The interest rate

• The result of dividing the final value by the initial amount

• The final investment value

• The initial investment amount

What mathematical operation is used to find the interest rate from the equation?

• Square root

• Fifth root

• Fourth root

• Cube root

Why is it important to write down the full answer without rounding in this problem?

• To match the format of the initial investment

• Because the problem specifies a certain number of decimal places

• To ensure accuracy as no rounding was requested

• To make the answer look more complex