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NSW Syllabuses

Mathematics K–10 - Stage 5.2 - Number and Algebra Financial Mathematics ◊


A student:

  • MA5.2-1WM

    selects appropriate notations and conventions to communicate mathematical ideas and solutions

  • MA5.2-2WM

    interprets mathematical or real-life situations, systematically applying appropriate strategies to solve problems

  • MA5.2-4NA

    solves financial problems involving compound interest

Related Life Skills outcomes: MALS-12NA, MALS-13NA, MALS-14NA, MALS-15NA, MALS-16NA, MALS-17NA


  • establish and use the formula to find compound interest:
    \( A = P \left( 1+R \right) ^n \) where \(A\) is the total amount, \(P\) is the principal, \(R\) is the interest rate per compounding period as a decimal, and \(n\) is the number of compounding periods
  • calculate and compare investments for different compounding periods, eg calculate and compare the value of an investment of $3000 at an interest rate of 6% per annum after 5 years when the interest is compounded annually, as opposed to the interest being compounded monthly (Problem Solving) CCTPSC
  • use a spreadsheet to graph the value of an investment of a particular amount at various compound interest rates over time (Problem Solving) ICT
  • solve problems involving compound interest
  • calculate the principal or interest rate needed to obtain a particular total amount for a compound interest investment (Problem Solving)
  • use a 'guess and refine' strategy to determine the number of time periods required to obtain a particular total amount for a compound interest investment (Problem Solving) CCT
  • compare the total amounts obtained for a particular investment when the interest is calculated as compound interest and as simple interest, eg compare the total amount obtained when $10,000 is invested at an interest rate of 6% per annum compounded monthly for 5 years, with the total amount obtained when the interest is calculated as simple interest (Problem Solving) CCTPSC
  • use the compound interest formula to calculate depreciation PSC

Background Information

Internet sites may be used to find commercial rates for home loans and to provide 'home-loan calculators'.

National Numeracy Learning Progression links to this Mathematics outcome

When working towards the outcome MA5.2-4NA the sub-elements (and levels) of Operating with percentages (OwP6) and Number patterns and algebraic thinking (NPA7-NPA8) describe observable behaviours that can aid teachers in making evidence-based decisions about student development and future learning.

The progression sub-elements and indicators can be viewed by accessing the National Numeracy Learning Progression.