The task aims to introduce the concept of simple and compound interest and its effect on the amount by which an investment grows over time. There is
Financial Maths, Algebra and Graphs
Previous experience of using spreadsheets and of calculating percentages would be useful.
Students should be asked initially to think about different ways to calculate percentages, with reference to a multiplicative method to give final amounts after interest has been added. Examples of real available savings accounts would be useful too.
In addition to this overview, there are:
• Detailed teacher notes (Word and PDF)
• Student information sheet (Word and PDF)
• Excel spreadsheet worksheet
• Excel spreadsheet worksheet solutions
Access to an Excel spreadsheet or an alternative spreadsheet programme is required. Calculators and internet access would also be useful.
Students could be given a virtual sum of money to invest in one of the available savings accounts in order to maximise their return. Reference to ISAs, variable rates and long-term investments should be made.
This is a resource developed by the Nuffield Foundation for the FSMQs and can be accessed at www.nuffieldfoundation.org/fsmqs/level-2-financial-calculations