Mathematics GCSE
Compound Interest
What Compound Interest means in Mathematics GCSE, as defined for OCR, Pearson Edexcel.
Definitions of Compound Interest
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Interest calculated on the initial principal and also on the accumulated interest of previous periods.
Interest calculated on both the initial principal and the accumulated interest from previous periods.
Topics that use Compound Interest
- Algebra (OCR GCSE)
- Ratio, Proportion and Rates Of Change (OCR GCSE)
- Ratio, proportion and rates of change (Pearson Edexcel GCSE)
Related terms
- Denominator
- Multiplier
- Numerator
- Recurring Decimal
- Depreciation
- Compound Measure
- Equivalent Fractions
- Percentage Multiplier
Using Compound Interest in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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