This resource handily introduces compound interest to more able KS3 groups and GCSE in the form of adding interest to a bank account. Other topics covered include percentages and decimal multipliers.
This resource is an investigation (with teacher notes and accompanying worksheets) which gets students to investigate whether how often interest is added to a bank account effects the total amount of interest.
The problem is so:
I invest £1,000 in a savings account at an interest rate of 3.1% p.a. for one year. What interval at which the interest is paid will get me the most money?
The students can then be guided to calculating the total amount of interest when it is added, daily montly etc. before being guided to an overall formula to solve the problem.
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