Functions (MCR3U) · Discrete Functions

Simple interest, compound interest, and annuities

Solve financial application problems: simple interest, compound interest, and the future value of an annuity. Unlimited questions, five difficulty levels, and a full worked solution every time — free.

Practice this skill Curriculum: MCR3U-DF3.1

Try one

Chen invests $1500.00 in a savings bond that pays 5% simple interest per year. How much will the investment be worth after 3 years?

Answer: 1725

See one solved, step by step

Noah invests $1700.00 at 4% per year, compounded annually. How much will the investment be worth after 2 years?

📘 Worked solution
1A = P(1 + i)n = 1700(1 + 0.04)2Each year, interest is earned on the previous year's total, not just the original principal.
2= 1700 · 1.0816 = 1838.72Compute the growth factor raised to the power 2, then multiply by the principal.

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