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With compound interest, the interest is added to the money every year, so next year you earn interest on the interest too. Work year by year, or use Amount = P × (1 + R/100)ⁿ.
✓ You passed this lesson’s test.
Year by year — “each year, add R% of the amount at the start of that year”
Use it for: Savings that grow, loans, population growth, and compound interest in Class 8 and aptitude tests.
🧮 Check your own sums with the free Compound interest calculator — it shows the working.
Check: 8000 × 1.05 × 1.05 × 1.05 = 9261, and simple interest would be only ₹1200 ✓
▶ Watch it animatedWork it out in your head or on paper, type the answer and press Check. Stuck? Press “Show me how”.
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20 questions. Check each answer, then go to the next one. Get 16 or more right to pass.
🏅 Sign in with Google to earn the 🌱 Compound Climber badge when you pass — and a certificate when you finish all 10 lessons of Part 2 · Everyday maths. You can still take the test without signing in.
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