Interest and Depreciation

This task involves investigating various aspects of interest and depreciation, including compound interest and the effects of compounding over different numbers of periods (for example annually, monthly or weekly).

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Overview of task

This task involves investigating various aspects of interest and depreciation, including compound interest and the effects of compounding over different numbers of periods (for example annually, monthly or weekly).

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Strand

Number and Measures

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Prior knowledge

Students will need a secure understanding of calculating percentage change, including use of a decimal multiplier. Experience with using spreadsheets will also be useful.

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Relevance to Core Maths qualifications

  • AQA
  • C&G
  • Eduqas
  • Pearson / Edexcel
  • OCR

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Suggested approaches

This task is suitable for work in pairs or small groups.

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Resources/documentation

A PowerPoint presentation is supplied, which includes full teaching notes on each of the tasks for the lesson. In addition, a spreadsheet containing full solutions for tasks 2 and 3 is provided in Excel and Numbers formats.

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Relevant digital technologies

This task is ideally suited to a spreadsheet-based approach, and the supplied spreadsheet files can be modified for use as examples or starting points as required.

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Possible extensions

An extension activity is suggested in the teaching notes on the final slide of the accompanying presentation. In addition, this activity could serve as a practical and familiar starting point for more formal work on compound interest and exponential growth and decay, where a more algebraic approach could be introduced and compared to the IT-based strategies adopted here.

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Acknowledgement

Developed by Tom Carpenter of Bishop Challoner Catholic College, Birmingham.