© Nuffield Foundation 2011

Nuffield Free-Standing Mathematics Activity

Annual Percentage Rate

Escape the British weather and spend a week in the sun. Treat yourself to a holiday loan!

Personal loans - what will you do with yours? Make your dreams happen – now!

Want to buy a motorbike? Competitive loans set up fast.

Need extra money fast?

How much does it cost to borrow money?

Do you know what APR means?

This activity will show you how the Annual Percentage Rate (APR) is worked out.

Reflect on your work

• Show that the formula C =

can be rearranged to give 11

n

C

Ai

ni1

A

• Use this formula to check your answers to ‘Try these A’.