Maths Worksheet 14

Harro people. Posted this so that you can complete your work.

Principal.

The money you deposit / borrow from a bank. If you deposit $2000, that is your principal and your interest may be calculated based on that $2000.

Simple interest.

As the name goes, it's simple! If your principal is $1000, and your interest is 10% per annum (per year), your interest will always be $100 per year.

Compound interest.

Ok, so if my principal is still $1000, after the first year with an interest rate of 10% per annum, I will get $1100. Then the second year, the interest I receive WILL BE BASED on the principal + interest from last year. So take $1100 X 10 % = 2nd year amount in my bank account.

(and so on)

Formula for amount (principal + compound interest) :

Principal + (1 X a%) (to the power of number of years or months)

Sry if it's complicated... Try, ok! :D But whoever who made the "CHEEM-ER" explanation on the maths worksheet should use simple english! HMMF......

Zhe Yi.