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End of Unit Test on Percentage Interest and Proportion for S3 Students

Score to pass: 70%

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Compound Interest, Reverse Percentage and Compound Proportional Change Unit Summary

 

1. Reverse percentage is the working out of original price of a product backwards after the increase.

 

2. Compound interest: is the interesst calculated on both the amount borrowed and any accumulated previous interests.

 

3. The compound interest formula states as shown: \(A = P(1 + \frac{r}{100k})^{kt}\) where \(A\) is the accumulated amount, \(P\) is the principal, i.e initial investment/loan, \(r\) is the rate annually, \(k\) is the number of interests calculated in a year, \(t\) is the duration of loan or investment.

 

4. For interest compounded annually, \(k=1\), semi-annually, \(k=2\), quartely, \(k = 4\), monthly, \(k=12\), etc...

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