Learn about and revise how to calculate percentages to solve real life problems, such as compound interest, with this BBC Bitesize GCSE Edexcel guide.

Learn about and revise how to calculate percentages to solve real life problems, such as compound interest, with GCSE Bitesize AQA Maths.

Interest is defined as the cost of borrowing money or the rate paid on a deposit to an investor. It can be classified as simple interest or compound interest.

Compounding is the process where an asset’s earnings, from either capital gains or interest, are reinvested to generate additional earnings for an investor.

Exponential growth is a basic concept in math that occurs when a quantity keeps doubling itself, and it can lead to large numbers quickly.

Simple interest works in your favor when you borrow money, while compound interest is better for you as an investor.