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GCSE Mathematics · key term
The percentage of the principal paid or earned as interest during a stated time period.
Used by AQA, Edexcel and OCR
Specification N2 · Paper 1, Paper 2, Paper 3
A percentage used to calculate interest on money saved or borrowed for a stated period.
Revise: Household FinanceAn interest rate tells you the percentage for a stated period, commonly a year. For one period, apply the stated percentage to the amount on which interest is being calculated. If £200 earns 3% interest for one year, the interest is £6 and the new balance is £206.
Specification R9 · Paper 1, Paper 2, Paper 3
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If the total is requested, it must be greater than the original principal when the interest rate and time are positive.
Specification 5.03a · Paper 1 (Foundation), Paper 2 (Foundation), Paper 3 (Foundation), Paper 4 (Higher), Paper 5 (Higher), Paper 6 (Higher)
The percentage of the principal charged or paid during a stated period.
Revise: Simple InterestThe starting sum is called the principal, and the interest rate tells you what percentage of that principal is paid or charged during each stated period.