Compound interest using the multiplier method - Higher Compound interest problems are much easier to solve by using the multiplier method. 5000 is invested at 8 pa. This is called the future value of the investment and is calculated with the following formula.
Each year each will pay off a lump sum of their debt which is taken from the balance.
In the next time period we then take this new value. This particular question is around GCSE grade 4 5 B in old money and deals with using the formula. Compound interest using the multiplier method - Higher Compound interest problems are much easier to solve by using the multiplier method. This is a revision lesson I put together for a Year 10 Intervention Group on Compound Interest.