Grade 8 Math · Financial Literacy

Compound interest vs simple interest

Calculate compound interest growth year by year and compare it with simple interest. Unlimited questions, five difficulty levels, and a full worked solution every time — free.

Practice this skill Curriculum: G8-F1.4

Try one

$200.00 is invested at 10% per year, compounded annually, for 2 years. What is the balance after 2 years?

A = P · (1 + r)t

Answer: $242.00

See one solved, step by step

$500.00 is invested at 10% per year, compounded annually, for 3 years. What is the balance after 3 years?

A = P · (1 + r)t
📘 Worked solution
1Year by year: year 1: $550, year 2: $605, year 3: $665.5Each year the balance is multiplied by 1.1 — interest earns interest.
2Balance: $665.50That's the compounded total after 3 years.

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