Support · Mathematics Standard 11–12 – Year 12 – Standard 2 · Investment and loans
Support Examine the effect of varying the interest rate, the term or the compounding period on the future value of an investment, with and without using digital tools
Resources for the prerequisite content of this dot point: earlier-stage (or earlier sub-level) dot points in the same strand that students usually need first. Use these to fill gaps before or alongside the core lesson.
Prerequisite links are draft mappings generated from the syllabus structure (earlier stage, same strand, closest content). They are being reviewed by teachers. Spot a poor match? Tell us.
Prerequisite dot points
Establish and use the formula FV = PV(1 + r)ⁿ to find compound interest where FV = future value of the investment, PV = present value of the investment, r = interest rate per time period and n = number of time periods
Stage 5 · Financial mathematics B Draft mapping
- Interactive toolStarterMathsisfun: Compound interestUse it for: Compound vs simple interest with tables and a calculator.
- Corbettmaths practice questions: Percentages: compound interestUse it for: Free printable graded practice questions (with answers) on percentages: compound interest for drill or a quick check.
- VideoStarterCorbettmaths video: Percentages: compound interestUse it for: Short worked-example video on percentages: compound interest to model the method before practice or for flipped revision.
- VideoStarterEddie Woo (WooTube): Basic Financial Mathematics playlistUse it for: Sydney teacher Eddie Woo's recorded lessons on financial mathematics; play a clip to model a method or for revision.
Associate the calculation of the total value of a compound interest investment with repeated multiplication, using digital tools
Stage 5 · Financial mathematics B Draft mapping
- Interactive toolStarterMathsisfun: Compound interestUse it for: Compound vs simple interest with tables and a calculator.
Use the compound interest formula to establish the depreciation formula S = V_0(1 - r)ⁿ where S = salvage value, V_0 = initial value of the asset, r = depreciation rate per time period and n = number of periods
Stage 5 · Financial mathematics B Draft mapping
No checked resources on this prerequisite dot point yet.