New Mathematics Counts Sec 3: Chapter 1 Mathematics in Practical Situations (Enrichment Worksheet 1)

Compound Interest
You shall set out to play a game involving compound interest with your teacher in this
worksheet.

Materials/Equipment you would need:

Die
Calculator
4 copies of the travelling sheet in Appendix B

Procedure
Step 1: Teacher to divide class into 4 groups, A, B, C and D.

Step 2: Each student to assign himself/herself a code according to the group and the position
down the row that he/she is in. E.g. 4th pupil in Group B is to call himself/herself B4.

Step 3: Teacher to throw the die twice in a row to determine the duration and interest rate. (One
suggestion is to let the outcome on the first throw represent the number of years and
subsequently, the outcome on the second throw, the interest rate.)

Step 4: Pupil A1, B1, C1 and D1 to record the duration and interest rate down in the travelling
sheet and calculate, A, the endoftheperiod amount, that will result from the given
duration and rate. (Note to pupils: If you cannot finish your calculations in 3 minutes,
your transaction will be cancelled. The next member from the neighbouring team will
continue with the previous transaction. No marks will be awarded to your team.)

E.g. (No predetermined answer)

Initial
Transaction Name of Code Principal, Duration Interest rate, Amount
pupil P (from (years) i (to be at end of
previous compounded period, A
row) annually
1 Aishah B1 $10 000 2 4 $10 816
2
3
4
5
6
7
8
9

1
New Mathematics Counts Sec 3: Chapter 1 Mathematics in Practical Situations (Enrichment Worksheet 1)

10

Step 5:Pupil A1, B1, C1 and D1 to pass travelling sheet to the next member of the neighboring
team (i.e. A1 B2, B1  C2, C1  D2, D1  A2) down the row. Pupil A2, B2, C2
and D2 to check whether A, the end-of-the-period amount that he/she has obtained is
correct. (Note: Pupil A2, B2, C2 and D2 is to use a red pen to cross out the answer
recorded by the Pupil A1, B1, C1 and D1 in the event that it is wrong.)

Step 6:Teacher to repeat Step 3 to determine the duration and interest for the second year of
repayment .

Step 7:Pupil A2, B2, C2 and D2 to record the duration and interest rate down in the travelling
sheet and calculate, A, the endoftheperiod amount, that will result from the given
duration and rate. (Note to pupils: If you cannot finish your calculations in 3 minutes,
your transaction will be cancelled. The next member from the neighbouring team will
continue with the previous transaction. No marks will be awarded to your team.)

E.g. (No predetermined answer)

Initial
Transaction Name of Code Principal, Duration Interest rate, Amount
pupil P (from (years) i (to be at end of
previous compounded period, A
row) annually
1 Aishah B1 $10 000 2 4 $10 816
2 Benny C2 $10 816 3 4% $12 166.53
3
4
5
6
7
8
9
10

Step 8: Pupil A2, B2, C2 and D2 to pass travelling sheet to the next member of the neighboring
team (i.e. A2 B3, B2  C3, C2  D3, D2  A3) down the row. Pupil A3, B3, C3
and D3 to check whether the selling price that he/she has obtained is correct. (Note:
Pupil A3, B3, C3 and D3 is to use a read pen to cross out the answer recorded by the
Pupil A2, B2, C2 and D2 in the event that it is wrong.)

Step 9: Teacher and pupils to continue with Steps 6 – 8 until all members of the class have
played the game.

END

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New Mathematics Counts Sec 3: Chapter 1 Mathematics in Practical Situations (Enrichment Worksheet 1)

Appendix A

Travelling sheet:

Initial
Transaction Name of Code Principal, Duration Interest rate, Amount
pupil P (from (years) i (to be at end of
previous compounded period, A
row) annually
1 Aishah B1 $10 000 2 4 $10 816
2
3
4
5
6
7
8
9
10