Paper 1 · Financial Maths ⏱ Tested in 4 exam questions since 2022 Lesson 2 of 8

Financial Maths 2 – Compound Interest

This tutorial is for members

Read the lesson notes free below — subscribe to watch the full worked video and download the PDF.

Subscribe for full access · €199/yr

You’ll learn

  • Find the future value of an investment using F = P(1+i)ᵗ (page 30 of the tables)
  • Derive F = P(1+i)ᵗ by compounding a balance year by year
  • Use logs (third rule, page 21) to find t when the unknown is in the power
  • Find the interest earned in a single year using P(1+i)ⁿ − P(1+i)ⁿ⁻¹

Most recent exam questions

  • 2024 P1 Q8(f) — deferred
  • 2023 P1 Q7(e) — deferred
  • 2023 P1 Q8(a)
  • 2022 P1 Q7(d)(ii) — deferred

💬 Stuck on something in this lesson?

Send your question with this lesson’s name attached — you’ll get a reply by email.