Simple and compound interest

Hi boys and girls,

Have a look at these links to go over Simple interest and Compound interest.

Compound interest

Hi kids,

we left this part of the unit before Christmas. It is quite important that you all understand what compound interest is, because I am afraid you will use it as adults.

First of all, I strongly recommend you to read about simple interest, we studied last year (See simple interest post).

Here you have a link with all the information (see compound interest).Have a look at the video if you still don't get:

The main difference between simple and compound interest is that with compound interest, we work out the interst for the first period, add it to the total, and then calculate the interest for the next period and so on. In the simple interest calculation we added the interest just at the end. I hope this video will help to remark the differences between simple and compound interest:

Take care,

ALICIA

Simple interest

Hi kids,

I am sure you have heard about bank interest, but never have been told what  is that exactly. I would say that INTEREST is how much is paid for the use of money (expressed as a percent or an amount). For further information, click on here (FOCUS ON SIMPLE INTEREST ONLY).

Have you ever wondered how a real bank works? See that video if you are interested:

If you want to practice doing exercises, have a look here.

This is the main vocabulary you should know for that unit:

LOAN, CREDIT: préstamo
PRINCIPAL: Capital
RATE OF INTEREST: Tipo de interés
BORROW: Tomar/pedir dinero prestado
LEND: Prestar dinero

Take care

ALICIA