compound interest
What compound interest means in Mathematics GCSE, as defined for AQA, Pearson Edexcel.
Definitions of compound interest
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Reference: AQA
Interest found by applying a repeated percentage change to an initial amount, unlike simple interest which adds the same amount each period.
A growth problem where the amount after n periods is found by multiplying the starting amount by a multiplier raised to the power n.
Topics that use compound interest
- Ratio, proportion and rates of change (AQA GCSE)
- Ratio, proportion and rates of change (Pearson Edexcel GCSE)
Related terms
- Compound Measure
- compound unit
- constant of proportionality
- Density
- direct proportion
- equality of ratios
- inverse proportion
- Multiplier
Using compound interest in the exam
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