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Math Tutorial 5.4 - Applications of Percentage in Banking. Simple and Compound Interest

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There are 5 lessons in this math tutorial covering Applications of Percentage in Banking. Simple and Compound Interest. The tutorial starts with an introduction to Applications of Percentage in Banking. Simple and Compound Interest and is then followed with a list of the separate lessons, the tutorial is designed to be read in order but you can skip to a specific lesson or return to recover a specific math lesson as required to build your math knowledge of Applications of Percentage in Banking. Simple and Compound Interest. you can access all the lessons from this tutorial below.


In this Math tutorial, you will learn:

  • How does a bank operate?
  • What are the key terms used in banking?
  • What is "interest applied" in banking?
  • What is the difference between the terms "interest" and "interest rates"?
  • How many types of interest are there?
  • How is the simple interest calculated?
  • How is compound interest calculated?
  • What is a compound percentage change? How it is applied in banking?

Introduction

In this tutorial, we will focus on banking terminology and focus on the key activity that makes a bank operate: interest. Banks work by collecting deposits from customers and using those deposits to fund investments and loans. The profits from those loans and investments are used to pay for the banks employees, offices and equipment etc. A portion of those profits is also used to provide extra money back to the customers who deposited the original money (the customers capital) with the bank. This extra money is called interest. Everybody, at some point in their life, will be in the situation where he/she is in doubt about which bank to choose for depositing his/her money. Therefore it is important to understand how banks work. As banks method of operation is based on percentages - a concept we cover in this chapter, we will now look at banking in more detail.

Please select a specific "Applications of Percentage in Banking. Simple and Compound Interest" lesson from the table below, review the video tutorial, print the revision notes or use the practice question to improve your knowledge of this math topic.

Percentages Learning Material
Tutorial IDMath Tutorial TitleTutorialVideo
Tutorial
Revision
Notes
Revision
Questions
5.4Applications of Percentage in Banking. Simple and Compound Interest
Lesson IDMath Lesson TitleLessonVideo
Lesson
5.4.1How does a Bank Operate?
5.4.2Simple Interest
5.4.3Calculating the Total Amount Earned when Simple Interest Is Known
5.4.4Compound Percentage Change
5.4.5Compound Interest

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  6. Continuing learning percentages - read our next math tutorial: Definition of Percentages

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