Paper 1 · Financial Maths ⏱ Tested in 4 exam questions since 2017 Lesson 1 of 8

Financial Maths 1 – Simple Interest

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You’ll learn

  • Find the future value of an investment using the simple-interest formula F = P(1+ni)
  • Convert the rate to a decimal and match n to the rate's period (months vs years)
  • Rearrange F = P(1+ni) to find the time n or the starting amount P
  • Explain how compound interest differs from simple interest

Most recent exam questions

  • 2025 Paper 1 Q8(a) — successive percentage discounts
  • 2024 Paper 1 Q10(d) — order of operations matters for percentage and absolute discounts
  • 2024 Paper 1 Q7(a) — Irish PAYE income tax — two tax bands, gross tax, then tax credit
  • 2017 Paper 1 Q8(b)(i) — percentage of a fixed amount

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