3.3 Money

• Interest and principal
• Simple and compound interest
• Appreciation and depreciation
• Hire purchase

• identify interest and principal in real-life situations
• calculate simple interest in real-life situations
• calculate compound interest per annum step by step up to three years in real-life situations
• work out appreciation and depreciation per annum step by step up to three years in different situations
• work out hire purchase in real-life situations
• use calculators to carry out operations related to money
• spend money responsibly on needs and leisure

“What is interest in money?”

“How do we pay for goods on hire purchase?”

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1. Interest and principal
   40 min · 1 practice tasks · quiz
   The five words used about money in a bank, what each means, and how they fit together.
2. Simple interest
   40 min · 1 practice tasks · quiz
   The formula I = PRT over 100, why the same interest is added each year, and working out the amount.
3. Rearranging the simple interest formula
   40 min · 1 practice tasks · quiz
   Finding the principal, the rate or the time when the interest is already known.
4. Compound interest, step by step
   40 min · 1 practice tasks · quiz
   Working out interest on the new amount each year, one year at a time, up to three years.
5. Simple against compound interest
   40 min · 1 practice tasks · quiz
   Comparing the two on the same money, why the gap opens from year two, and which is better for whom.
6. Appreciation
   40 min · 1 practice tasks · quiz
   Value rising by a percentage each year, worked out step by step, and which goods usually appreciate.
7. Depreciation
   40 min · 1 practice tasks · quiz
   Value falling by a percentage each year, worked out step by step, and why the fall gets smaller each time.
8. Hire purchase
   40 min · 1 practice tasks · quiz
   Deposit and instalments, working out the total paid, and comparing it with the cash price.
9. Spending money responsibly
   40 min · 1 practice tasks · quiz
   Telling needs from wants, thinking about what gains and loses value, and deciding before you buy.