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GCSE Mathematics · key term
Interest calculated from the original principal in every period, so the same amount of interest is added each time.
Used by AQA, Edexcel and OCR
Specification R9 · Paper 1, Paper 2, Paper 3
Interest calculated on the original principal only, so the same amount of interest is added in each equal time period.
Revise: PercentagesWith simple interest, every period’s interest is calculated from the original principal, rather than from a growing balance.
Specification R9 · Paper 1, Paper 2, Paper 3
Interest calculated from the same original sum in every time period.
Revise: Simple Interest and Financial MathematicsWith simple interest, every period’s interest is calculated from the same, fixed principal.
Specification 2.03c, 5.03a · Paper 1 (Foundation), Paper 2 (Foundation), Paper 3 (Foundation), Paper 4 (Higher), Paper 5 (Higher), Paper 6 (Higher)
Interest calculated repeatedly from the original amount, so the same amount of interest is added in each time period.
Revise: Percentage Change and InterestWith simple interest, each year's interest is calculated from the original principal. It does not earn interest on earlier interest, so the same amount is added each year.
Check whether the question asks for simple interest alone or the total balance. For the total, add the interest to the principal.
For simple interest, always calculate each period’s interest from the original principal, not from a growing balance.
For simple interest, calculate every period's interest from the original principal—not from a growing balance.
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