Compound interest and depreciation

What you'll learn

1. 1

   Imagine you have £100 in a bank. Each year, the bank pays you 10% of your money — like a reward for keeping it there!

2. 2

   If you have £100 and get 10% interest, how much do you have after 1 year?

3. 3

   Use the money tool to see how £200 grows with 5% interest each year for 3 years.

4. 4

   Let's work out: £300 at 10% compound interest for 2 years.

5. 5

   What is £500 at 10% compound interest after 1 year?

6. 6

   Depreciation is the opposite — things lose value over time, like a car. If a car loses 20% each year, it's worth less every year.

7. 7

   A £10,000 car depreciates by 20% each year. What is it worth after 1 year?