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Interest – practice for Years 8–9

Sample questions on Interest with the right answer and a worked solution, from easy to hard. In the Pickles Academy app a child gets new questions of the same kind every time, so they can't just learn the answers by heart.

Subject
Maths
Year
Years 8–9
Curriculum area
Relationships, functions and data

Question types: Interest and interest rates

Rule: Interest

Interest for a year = the amount saved × the interest rate (4% = 0.04).

If the interest is added to the savings, count the next year from the new amount: amount × 1.04 × 1.04.

Example: £50,000 at 4%: interest for a year 0.04 × 50,000 = £2000

Watch out: With the interest added each year, after 2 years it is not 8% of the first amount, but a little more.

Sample questions

  1. Question 1 Easy

    Grandma put £8000 in a bank account paying 1% interest a year. How many pounds of interest will she get in one year? Ignore any tax.

    Show the solution
    Answer: £80

    How it works: 1% of £8000 = 0.01 × 8000 = £80

  2. Question 2 Normal

    Grandma put £8000 in a bank account paying 1% interest a year. How many pounds will be in the account after one year? Ignore any tax.

    Show the solution
    Answer: £8080

    How it works: 1% of £8000 = 0.01 × 8000 = £80; 8000 + 80 = £8080

  3. Question 3 Hard

    Mr Smith put £50 000 in an account paying 2% interest a year. After each year the interest is added to the savings and earns interest too. How many pounds will be in the account after two years? Ignore any tax.

    Show the solution
    Answer: £52 020

    How it works: 50 000 × 1.02 = 51 000; 51 000 × 1.02 = £52 020

Related topics

All Maths topics

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