PrepWisePrepWiseMathematics
Ratio & ProportionMedium Exam FrequencyAQAEdexcelOCRWJEC

Compound Interest

Revise Compound Interest in Ratio & Proportion for GCSE Mathematics with 12 exam-style questions and 4 flashcards. This topic appears regularly enough that it should be part of a solid GCSE revision cycle.

Study this topic

1

What Is Exponential Change?

Introduction2

Key Facts

Key Facts3

Method: Exponential Problems

Deep Dive4

Worked Example 1: Population Growth

Notes5

Worked Example 2: Depreciation

Notes

Sample Flashcards

Growth vs Decay
Growth: multiply by (1+r). Decay: multiply by (1-r). The multiplier is raised to the power of n (time periods).
Exponential Decay
N = N₀ × (1 - r)^t for decay rate r

Sample Questions

Which formula correctly calculates the amount A after compound interest at rate r% per year for n years on principal P?

  • A. A = P × (1 + r/100) × n
  • B. A = P × (1 + r/100)^n
  • C. A = P + P × r/100 × n
  • D. A = P × r^n / 100
1 markfoundation

£2,000 is invested for 4 years. - Account A pays 5% simple interest per year. - Account B pays 4.5% compound interest per year. Which account gives more money after 4 years? Show all working.

3 marksstandard

12

exam-style questions

4

revision flashcards

Ready to revise Compound Interest?

Get personalised daily study plans, adaptive quizzes, and spaced repetition flashcards.

Join Alpha

Previous topic

Reverse Percentages

Next topic

Speed, Distance, Time