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Calculate Compound Interest in Excel - Get as Excel

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Calculate Compound Interest in Excel - Get as Excel Powered By Docstoc
					Nat Webb PLC bank pays          10.00% interest per year on a bank account.
You put £1,000.00 into the account. How much money will be in the
account in 6 years time if no money is added or withdrawn?

Original   £1,000.00       add interest      =       £1,100.00
Amount
           £1,100.00       add interest      =       £1,210.00


           £1,210.00       add interest      =       £1,331.00


           £1,331.00       add interest      =       £1,464.10


           £1,464.10       add interest      =       £1,610.51


           £1,610.51       add interest      =       £1,771.56
r year on a bank account.
ney will be in the


                      NatWebb Bank PLC v


                         Hide answers


                      Reveal answers



                     Teacher notes: insert different amounts in cell B2 and different
                                        interest rates in cell D1.




             Final Answer!
Nat Webb PLC bank pays          10.00% interest per year on a bank account.
You put £1,000.00 into the account. How much money will be in the
account in 6 years time if no money is added or withdrawn?

Original   £1,000.00       add interest      =      #######
Amount
           £1,100.00       add interest      =      #######


           £1,210.00       add interest      =      #######


           £1,331.00       add interest      =      #######


           £1,464.10       add interest      =      #######


           £1,610.51       add interest      =      #######
 ar on a bank account.
y will be in the


                  NatWebb Bank PLC v




        Final Answer!
Nat Webb PLC bank pays          10.00% interest per year on a bank account.
You put £1,000.00 into the account. How much money will be in the
account in 6 years time if no money is added or withdrawn?

Original   £1,000.00                 add interest                      =             #######
                       multiply the original amount by the interest rate and add it to the original amount
Amount
           £1,100.00                 add interest                      =             #######
                       multiply the last answer by the interest rate and add it to the last answer



           £1,210.00                 add interest                      =             #######
                       multiply the last answer by the interest rate and add it to the last answer



           £1,331.00                 add interest                      =             #######
                       multiply the last answer by the interest rate and add it to the last answer



           £1,464.10                 add interest                      =             #######
                       multiply the last answer by the interest rate and add it to the last answer



           £1,610.51                 add interest                      =             #######
                       multiply the last answer by the interest rate and add it to the last answer
 ar on a bank account.
y will be in the


                      NatWebb Bank PLC v
he original amount




              Final Answer!
1)

2)


3)


4)
                                         General Rule

                                  T=Px(1+r) n
                                        T=Total
                              P=Principle (original) amount
                                    r=Interest Rate
                                  n=number of years

Use the genral rule to work these out.
A bank charges 6.9% interest on a loan of £5000. How much interest would be paid after 3 years?

A baby octopus weighs 10kg at birth and increases it's body weight by 5% a day. Calculate it's weight
Round your answer upto 1 decimal place.

Mr Webbs car cost £450 (honestly it did!) . It lost 10% of it's value each year. That was 3 years ago
How much is it worth now?

Howlong after Mr webb bought his dodgy old banger will it become worth less than £300?
Show all your working out.
                 £6,108.06

a day. Calculate it's weight after a week.
                 13.4

r. That was 3 years ago
                 £364.50

                 4 years
                     General Rule : This works for any compount interest question!
                                                                  n
                                            T=Px(1+r)
                                       T = Total (the "final amount")
                                     P = Principle (the original amount)
                                              r = Interest Rate
                                            n = Number of years

   Use the genral rule and calculator to work these out. Write what you type in the calculatorto help you revise!

1) A bank charges 6.9% interest on a loan of £5000. How much interest would be paid after 3 years?          £6,108.06




2) A baby octopus weighs 10kg at birth and increases it's body weight by 5% a day. Calculate it's weight after a week.
   Round your answer upto 1 decimal place.                                                                  13.4




3) Mr Webbs car cost £450 (honestly it did!) . It lost 10% of it's value each year. That was 3 years ago
   How much is it worth now?                                                                                £364.50




4) Howlong after Mr webb bought his dodgy old banger will it become worth less than £300?                   4 years
   Show all your working out.

				
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