Question 1: Calculate the amount accumulated after 1 year if £1000 is invested at an annual interest rate of 6% compounded monthly.

Answer: 1061.68

Question 2: Find the value of the monthly interest rate if £500 grows to £530 in 6 months with compound interest.

Answer: 0.98%

Question 3: Construct a compound interest table for a principal of £2000 at 5% interest compounded monthly over 12 months. Fill in the first 3 months.

Answer: ["Month 1: £2008.33","Month 2: £2016.67","Month 3: £2025.01"]

Question 4: A savings account grows by 0.5% per month. How much will an initial deposit of £1500 amount to after 8 months?

Answer: 1658.45

Question 5: If £750 is invested at 4% annual interest compounded monthly, what is the total after 2 years?

Answer: 828.58

Question 6: A bank offers a monthly compound interest rate of 0.75%. How much would a £1200 deposit grow to after 9 months?

Answer: 1247.17

Question 7: A person invests £2000 at an interest rate of 6% compounded monthly. How much interest is earned after 1 year?

Answer: £117.39

Question 8: In a savings scheme, £1500 is invested monthly with a 0.4% interest rate compounded monthly. What is the total balance after 12 months?

Answer: 1938.00

Question 9: A student mistakenly used simple interest instead of compound interest for a 6-month investment of £1000 at 4% annual rate. Identify and explain the mistake.

Answer: The mistake is applying simple interest, which calculates interest only on the principal, whereas compound interest adds interest on accumulated interest. The correct method involves compound interest formula, leading to a higher amount.

Question 10: If a £2500 investment grows to £2650 in 3 months with compound interest, what is the monthly interest rate? Show your working.

Answer: 0.54%

Question 11: Challenge: An investment of £1800 earns compound interest monthly at an unknown rate. After 18 months, the total is £2000. Find the monthly interest rate, and explain your method.

Answer: The monthly interest rate is approximately 0.75%. To find it, use the formula: Final amount = Principal * (1 + r)^n. Rearranged to r = (Final/Principal)^(1/n) - 1.