GCSE Secondary Maths Age 13-17 - Ratio, Proportion & Rates of Change: Compound Interest - Explained

The video tutorial explains how to compare investment options between two banks using compound interest calculations. Anil wants to invest £25,000 for three years, and the video demonstrates how to calculate the final amounts for both the Personal Bank, with a 2% annual interest rate, and the Secure Bank, with varying rates of 4.3% for the first year and 0.9% for subsequent years. The tutorial concludes that the Secure Bank offers a better return. It also provides insights into the allocation of marks for solving such problems and emphasizes the efficiency of using percentage multipliers for compound interest calculations.

What is the initial amount Anil wants to invest?

• £20,000

• £25,000

• £30,000

• £35,000

What is the annual compound interest rate offered by the Personal Bank?

• 1.5%

• 2%

• 2.5%

• 3%

How much does the Personal Bank offer at the end of three years?

• £27,530.20

• £26,000

• £26,530.20

• £27,000

What is the interest rate for the first year at the Secure Bank?

• 6%

• 5%

• 4.3%

• 3.5%

What is the interest rate for the second and third years at the Secure Bank?

• 0.5%

• 0.7%

• 0.9%

• 1.1%

How much does the Secure Bank offer at the end of three years?

• £27,000

• £26,530.20

• £26,000

• £26,546.46

Which bank provides a better return after three years?

• Secure Bank

• Neither

• Both offer the same

• Personal Bank