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UCE (O-Level) Mathematics — practice by topic

Browse 83 questions across 42 Mathematics topics. Choose what you want to revise, then open a question to check its answer and worked solution.

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Simple interest is worked out on which amount?

  1. Only the amount invested
  2. The interest earned only
  3. The interest and the rate
  4. The number of years only
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Correct answer: A. Only the amount invested

1. Interest is the money charged for borrowing money, or earned for lending it. 2. Simple interest is interest calculated only on the initial amount that you invested. 3. That opening balance is called the principal in financial calculations. 4. Interest already earned is never added to the principal under simple interest. _Source: Siyavula Mathematics Grade 10 (Everything Maths, CC BY 4.0), Chapter 9: Finance and growth_

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What makes compound interest different from simple interest?

  1. It earns no interest at all
  2. It earns interest on interest
  3. It ignores the time period
  4. It always uses a fixed sum
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Correct answer: B. It earns interest on interest

1. Under simple interest only the original investment ever earns interest. 2. Compound interest is the interest earned on the principal amount and on its accumulated interest. 3. Each year's closing balance therefore becomes the opening balance for the next year. 4. This is good news for an investor but bad news for anyone repaying a loan. _Source: Siyavula Mathematics Grade 10 (Everything Maths, CC BY 4.0), Chapter 9: Finance and growth_

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Two investments are plotted against time on the same axes. Which one gives a straight line graph?

  1. Compound interest growth
  2. Population growth
  3. Simple interest growth
  4. Price inflation growth
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Correct answer: C. Simple interest growth

1. Simple interest adds the same amount of interest in every year. 2. Adding a constant amount each year produces a straight line graph. 3. Compound interest adds a growing amount each year and produces an exponential graph. 4. Population growth and inflation both follow the compound pattern, so neither of those plots as a straight line. _Source: Siyavula Mathematics Grade 10 (Everything Maths, CC BY 4.0), Chapter 9: Finance and growth_

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