This worksheet helps students grasp the concept of compound interest.

Section A leads students through calculating the value of two investments after each year. It requires them to show the calculation used for each step to consolidate the skill. It then asks students to write the formula for the final amount and adapt that formula for just finding the amount of interest – this is an essential aspect of the topic as the wording of exam questions can be tricky for students to understand.

Section B then asks students to find the final amounts of investments given an initial amount, interest rate and several years. Section C has some worded questions, including recognising the graph representing compound interest and some involving depreciation.