24.3 - Types of Interest
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Practice Questions
Test your understanding with targeted questions
What is the formula for Simple Interest?
💡 Hint: Think about the components of the formula.
How do you define Compound Interest?
💡 Hint: Consider how CI differs from SI.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the main difference between Simple Interest and Compound Interest?
💡 Hint: Think about how interest is calculated for both.
True or False: Compound Interest is always higher than Simple Interest for longer time periods.
💡 Hint: Consider how interest accumulates differently.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A person invests $5,000 in a savings account with a 6% simple interest rate for 10 years. Calculate the total amount received at the end of 10 years and discuss how this would compare to a compound interest scenario at the same rate.
💡 Hint: Remember to use the SI formula for a straight calculation.
If a loan of $3,000 is charged a 4% interest compounded annually for 5 years, what is the total amount repayable? How would this differ from using simple interest calculations?
💡 Hint: Use the CI formula to find the outstanding amount.
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