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

The video tutorial explains how to compare investment options between two banks using compound interest calculations. Anil wants to invest £25,000 for three years, and the video demonstrates how to calculate the final amounts for both the Personal Bank, with a 2% annual interest rate, and the Secure Bank, with varying rates of 4.3% for the first year and 0.9% for subsequent years. The tutorial concludes that the Secure Bank offers a better return. It also provides insights into the allocation of marks for solving such problems and emphasizes the efficiency of using percentage multipliers for compound interest calculations.

Calculate the total amount Anil would have after three years in the Personal Bank.

Calculate the total amount Anil would have after three years in the Secure Bank.

Which bank provides the most interest at the end of three years?