Compound Interest Explained (Why It Grows Faster) | Read Along | Percentages Explained

Confused by compound interest? This read-along guide walks you through exactly how it works — clearly and simply at your own pace. Using a real example — £1,000 invested at 5% per year for 3 years — I'll show you step by step how compound interest grows faster than simple interest. We cover: ✅ What makes compound interest different ✅ How to calculate it year by year ✅ Why the interest grows each year ✅ The compound interest formula ✅ Where compound interest appears in real life ✅ Common mistake to avoid Perfect for GCSE revision, understanding savings accounts, mortgages and credit cards. 🔊 Prefer to listen? Watch the narrated version here: [link] 📌 Part of the Percentages Explained playlist — watch the full series for complete percentage confidence! Percentages Explained Playlist: https://youtube.com/playlist?list=PLb-7Cy86_DYnSobFv4G45qGdOzwqLI5gb&si=vMRUQa1QaYt80UCh 🔔 Subscribe to Simply Said Explained for more everyday maths made simple! #CompoundInterest #Percentages #MathsExplained #GCSEMaths #EverydayMaths #LearnMaths #MathsHelp #SimpleMaths #MathsTutorial #MathsMadeSimple #SimplySaidExplained #PercentageHelp #MathsRevision

Added 21 Apr 2026