This is all the basic content in the Grade 10 CAPS Document for Grade 10 Financial Mathematics.

1. Financial
Mathematics
Grade 10

2. CAPS Document
What the CAPS document suggests grade 10
learners should know.
- Know Simple and Compound Growth Formulae
to solve interest, hire purchase, inflation,
population growth problems.
- Exchange Rates.

3. Interest
Interest is the money paid by the bank to
you for keeping your money in the bank.
We also pay interest when borrowing
money from the bank. These interests are
divided into two.

4. Interest
- Interest Rate is Usually Expressed as a
percentage.
- Interest Rate is the percentage and
Interest is what you pay or receive
monthly.
-

5. - Hire Purchase : Repayment made with
Simple Interest. (Total amount : Deposit + Amount each month)
- Inflation : Increase on price of goods and
services. (Works with compound interest)
- Population Growth: Calculation using
- Compound Interest.

6. Simple Interest
Simple Interest is a easy way of finding
interest in a loan or investment.
A = P ( 1 + in )
A = Final Amount
P = Principle Amount
i = Interest Rate
n = Time
You can be asked to find any of these values.

7. Example
John Put R300 into an account. The bank gives him an interest rate
of 15% for 3 years. How much will he get after these 3 years?
First it is important to figure out what we are looking for. In this case we
need the Final Amount (A). So then we plot down what we have.
A = ? , P = R300 , i = 15% but we write it as 0.15 and n = 3
Therefore

8. Example
John Puts a certain amount into an account. The bank gives him an
interest rate of 25% and receives R500 after 2 years. How much
money did he put in?
A = R500 , P = ? , i = 25% but we write it as 0.25 and n = 2
Therefore

9. Example
John Puts a R400 into an account. He receives R600 after only 3
years. Which interest rate did the bank give him?
A = R600 , P = R400 , i = ? and n = 3
Therefore

10. Example
John Puts a R400 into an account. He receives R750 for investing at
18%. How long did he invest his money for?
A = R750 , P = R400 , i = 0.18 and n = ?
Therefore

11. Compound Interest
Compound interest is where each months
value is calculated on the previous new
amount after earning of interest.
That is why we call it compound interest.
A = P ( 1 + i )ⁿ
A = Final Amount
P = Principle Amount
i = Interest Rate
n = Time

12. Examples
Sarah wants to invest R500 in the bank at a compounded interest
of 11% per year. How much will she have after 3 years?
A = ? P = R500 i = 0,11 n = 3

13. Examples
Sarah wants to have R6000 in 5 years time. How much should she
invest in the bank is giving her an interest rate of 12,5%?
A = R6000 P = ? i = 0,125 n = 5

14. Simple VS Compound Interest.

15. Exchange Rates
So as we all know different countries use different
currencies (money).
Some of these currencies are worth more than
other, and this is where exchange rate comes in.
Currency worth is based on numerous
factors such as inflation rate, interest
rate, government debt, political stability and
recession.

16. Example of Exchange Rates
Exchange rates are changing
constantly and therefore do not
always stay the same.

17. Examples
Given the exchange rate is R1 = $0,113509 and R8,80468 = $1.
How many dollars will you get with R500?
Method 1:
$ = 500 × 0.113509
$ = 56,75
Method 2:
$ = 500 ⁄ 8,80468
$ = 56,75
As we can see both methods get the same answer and
therefore we are able to use both methods to get the exchange
rate.

18. Test yourself.
• You want to buy a smart phone from the shop. The shop sells the
smart phone at cash price of R4 950. You want to know what you
would need to pay every month if you pay R700 deposit against
14,5% over 2 years. ( A = 5 482,50)∴
• What would a car cost now that cost R200 000 4 years ago if the
inflation rate is 8,6%? ( P = 143 784, 04)∴
• 3 years ago there were 20 students in a classroom. If the school
grew12,4% per year how many students would be attending the
school now? (A = 49)
•

19. Reference
- YouTube Introduction to financial Mathematics
https://www.youtube.com/watch?v=NQfw-3_Ol60
- Images : Google Images.
- Mbhamalitn (Student at the University of Johannesburg)
https://www.slideshare.net/Mbhamalitn/financial-mathematics-for-grade-10-11-
and-12
- Georgina Fourie
https://www.slideshare.net/GeorginaFourie/finance-and-growth-32099996
- Debbie Doshier
- https://www.slideshare.net/doshiermath/financial-math-power-pt
- - Edgar Carrillo
- https://www.slideshare.net/EdgarCarrillo6/the-math-of-financial-literacy
- - Grade 10 Sharp Mathematics, Finance, Growth and Decay.
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