APR and Compound Interest Calculations in P7

Some of the children in P7 have been studying what APR (Annual Percentage Rate) and compound interest is and how to calculate it.

Some pupils were given a real life context to investigate credit card payments. They were given ten minutes to spend an imaginary credit limit on anything they wanted from a popular store. It was straight to the technology section to spend lots of money on iPads and laptops, then onto the jewellery department to buy some diamonds. (Their teacher was surprised no toys were bought, just big money items!). They then investigated how long it would take to pay this debt off.

The children have also calculated interest on different savings accounts. They learned that all banks offer different savings rates and that it’s important to look for the best one for you.