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

What is the interest rate for the first year at the Secure Bank?

• 3.5%

• 4.3%

• 2%

• 0.9%

How is the compound interest calculated for the Personal Bank?

• Using a percentage multiplier raised to the power of two

• Using a simple interest formula

• Using a percentage multiplier raised to the power of three

• By adding a fixed amount each year

What is the final amount obtained from the Personal Bank after three years?

• £26,075

• £26,546.46

• £26,530.20

• £25,000

What is the interest rate for the second and third years at the Secure Bank?

• 2%

• 4.3%

• 0.9%

• 1.5%

What is the final amount obtained from the Secure Bank after three years?

• £26,075

• £26,546.46

• £25,000

• £26,530.20

Which bank provides a higher return after three years?

• Personal Bank

• Secure Bank

• Neither bank provides a return

• Both banks provide the same return

What is the benefit of using a percentage multiplier in compound interest calculations?

• It is only useful for simple interest

• It increases the interest rate

• It simplifies the calculation process

• It decreases the interest rate