Ratio & ProportionKey Facts

Key Facts

Part of Compound InterestGCSE Mathematics

This key facts covers Key Facts within Compound Interest for GCSE Mathematics. 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 still be part of a steady revision cycle. It is section 2 of 5 in this topic. Use this key facts to connect the idea to the wider topic before moving on to questions and flashcards.

Topic position

Section 2 of 5

Practice

12 questions

Recall

4 flashcards

Key Facts

Growth Formulay = a × (1 + r)ⁿ
Decay Formulay = a × (1 - r)ⁿ
a =Initial amount (starting value)
r =Rate as a decimal (e.g., 5% = 0.05)
n =Number of time periods
MultiplierGrowth: (1+r), Decay: (1-r)

Keep building this topic

Read this section alongside the surrounding pages in Compound Interest. That gives you the full topic sequence instead of a single isolated revision point.

Practice Questions for Compound Interest

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

Quick Recall Flashcards

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

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