Master financial mathematics and interest calculations
Financial mathematics is essential for understanding loans, investments, and economic growth. This section covers simple interest, compound interest, hire purchase agreements, and applications to inflation and population growth. Each topic includes interactive games and quizzes to test your understanding.
Select a topic below to begin your studies.
Interest earned only on the principal amount using linear growth
Explore Simple InterestInterest earned on principal and accumulated interest (exponential growth)
Explore Compound InterestBuying on credit with deposits, simple interest, and insurance
Explore Hire PurchaseApplying compound growth to prices and population
Explore ApplicationsUse for: Short-term loans, hire purchase
Use for: Investments, savings, loans
Same as: Compound growth
| Topic | Formula | Variables |
|---|---|---|
| Simple Interest | I = P × r × t | P = principal, r = rate (decimal), t = time (years) |
| Accumulated Amount (Simple) | A = P(1 + rt) | A = total amount including interest |
| Compound Interest | A = P(1 + i)n | i = rate per period, n = number of periods |
| Hire Purchase Principal | P = Cash Price - Deposit | Deposit = % of cash price |
| Inflation/Population | Future = Present × (1 + rate)n | Same as compound growth |
Test your understanding of financial mathematics before diving into the topics.
Hint: Think about how hire purchase is calculated.
Use this Finance section to connect percentage work with real money situations. Practise simple interest, compound growth, inflation, depreciation, and hire purchase by writing the formula, substituting values carefully, and interpreting the answer in context.
A useful path from this page is to begin with Simple Interest, continue with Compound Interest, and then test your understanding with Hire Purchase. Do not rush through the links; spend time on the examples and make sure you can explain the main idea without looking at the notes.
Use this page to build definitions, worked examples, formulas, diagrams, and problem-solving methods. Write down key terms, formulas, diagrams, or steps that appear often so that revision becomes active instead of just rereading.
Keep a correction book for sign errors, formula mistakes, geometry reasons, and questions that need more practice. After each lesson, close the page and try a short self-test from memory before checking your notes again.
If you are stuck, start with algebra basics and number skills, because many later topics depend on accurate manipulation and clear working. If a topic feels too difficult, return to the previous link, revise the basics, and then try the examples again before using past papers.
