Simple Interest and Compound Interest

Feedback: Not quite! The principal is £200, and the annual interest is 4%, which is £200 × 4% = £8. For 5 years, multiply the yearly interest by the number of years: £8 × 5 = £40.

Feedback: Not quite! The principal is £300, and the interest for 1 year is £300 × 4% = £12. For 3 years, multiply the 1-year interest by 3: £12 × 3 = £36.

Feedback: Not quite! Compound interest means the total amount after 2 years is calculated as £500 × (1 + 5%)². First year: £500 × 1.05 = £525. Second year: £525 × 1.05 = £551.25.

Feedback: Not quite! The interest for 1 year is £1,000 × 5% = £50. For 4 years, multiply the 1-year interest by 4: £50 × 4 = £200. Add the interest to the principal: £1,000 + £200 = £1,200.

Feedback: Not quite! The principal is £500, and the annual interest is £500 × 6% = £30. For 4 years, multiply the 1-year interest by 4: £30 × 4 = £120. Add the interest to the principal: £500 + £120 = £620.

Feedback: Not quite! Use the formula: Total Amount = Principal × (1 + Interest Rate)?, where n is the number of years. After 1 year: £200 × (1 + 5%) = £200 × 1.05 = £210. After 2 years: £210 × (1 + 5%) = £210 × 1.05 = £220.5.