Compound Interest Worksheet
Free to print and use in your classroom. No sign-up required.
Compound Interest Worksheet
Formula
Compound interest: A = P(1 + r/100)^n
Compound depreciation: A = P(1 − r/100)^n
Where: P = principal (starting amount), r = annual interest rate (%), n = number of years, A = final amount
Show full working for each question. Give monetary answers to the nearest penny unless stated otherwise.
1. £1,000 is invested at 5% compound interest per year for 2 years. Find the total amount.
2. £2,000 is invested at 4% compound interest for 3 years. Find the total amount.
3. £500 is invested at 3% compound interest for 2 years. Find the interest earned (not the total amount).
4. A car worth £14,000 depreciates at 20% per year. Find its value after 2 years.
5. £800 is invested at 6% compound interest for 3 years. Find the total amount.
6. A machine worth £25,000 depreciates at 15% per year for 3 years. Find its value to the nearest penny.
7. £3,500 is invested at 2.5% compound interest for 4 years. Find the total amount to the nearest penny.
8. Compare: £5,000 at 4% simple interest for 3 years versus £5,000 at 4% compound interest for 3 years. Which gives more and by how much?
9. A house is worth £220,000. It increases in value at 3.5% per year. Find its value after 5 years to the nearest pound.
10. A car worth £18,000 depreciates at 12% per year. What is it worth after 3 years to the nearest pound?
11. £4,000 is invested at 5% compound interest. After how many complete years does the total amount first exceed £5,000? Use trial and improvement.
12. £10,000 is invested at 3% compound interest for 10 years. Find the total amount to the nearest penny.
13. A laptop costs £1,200. It loses 30% of its value in year 1 and then a further 20% of its value in year 2. Find its value after 2 years.
14. £2,000 is invested at 4.5% compound interest per year. Find the interest earned in the third year alone.
15. A population of 5,000 grows at 2% per year compound. Find the population after 4 years. Give your answer to the nearest whole number.
16. £8,000 is split equally between two accounts. Account A pays 5% compound interest per year. Account B pays 6% simple interest per year. Which account has more money after 3 years, and by how much?
17. A car is worth £22,000. It depreciates at 18% per year. After how many complete years will it be worth less than £10,000? Show your working year by year.
18. An investment doubles when compound interest at 7% is applied. Approximately how many complete years does this take? Use trial and improvement.
19. £15,000 is invested at r% compound interest per year. After 2 years it is worth £16,224. Find r.
20. In 2010, House A was worth £200,000 and increased in value at 4% per year compound. House B was worth £250,000 and fell in value at 2% per year compound. In which year did House A's value first exceed House B's value?
Free to print and use in your classroom. No sign-up required. percentages.co.uk