Support · Mathematics Standard 11–12 – Year 12 – Standard 1 · Investment

Support Calculate the future value, present value or interest rate of a compound interest investment using the formula FV = PV(1 + r)ⁿ where FV = future value of the investment, PV = present value of the investment, r = interest rate per time period and n = number of time periods

Resources for the prerequisite content of this dot point: earlier-stage (or earlier sub-level) dot points in the same strand that students usually need first. Use these to fill gaps before or alongside the core lesson.

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Prerequisite dot points

Establish and use the formula FV = PV(1 + r)ⁿ to find compound interest where FV = future value of the investment, PV = present value of the investment, r = interest rate per time period and n = number of time periods

Stage 5 · Financial mathematics B Draft mapping

Establish and use the formula I = Prn to find simple interest where I =simple interest, P =principal, r =interest rate per time period and n = number of time periods

Stage 5 · Financial mathematics A Draft mapping

Use the compound interest formula to establish the depreciation formula S = V_0(1 - r)ⁿ where S = salvage value, V_0 = initial value of the asset, r = depreciation rate per time period and n = number of periods

Stage 5 · Financial mathematics B Draft mapping

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