The Vainona High School Social Club intends to raise funds for an end of year $2025$ party through investing in various projects. One such project involves lending money to teachers for a period of $3$ years beginning from January $2023.$ In this project the club lends $$1000$ to each teacher at the rate of $15\%$ per annum. However, they are still undecided about the most suitable method to use in calculating interest. You are required to give the club correct mathematical advice on the choice and use of a method for calculating interest.

The CALA

The CALA consists of two parts, Part A and Part B$.$ You are required to respond to both parts of the CALA.

Page $2$ of $1$

Part A

You are required to research and advise the club on:

$($i$)$ any two methods for calculating interest on an investment

$($ii$)$ the formula used in each of the methods in $($i$)$ above

$($iii$)$ the meaning of each of the letters used in the formulas in $($i$)$ above $.$

Part B

You are required to :

$($i$)$ Calculate the interest obtained by applying each of the methods.

$($ii$)$ Calculate the total amount that a teacher should repay to the club at the end of the three year period.

$($ii$)$ Write a short report, recommending the best method for calculating interest on an investment.

How you will be assessed.

The total number of marks is $20.$

Marks will be awarded for :

Stating methods for calculating interest on investments

$[2]$

Explaining the meaning of the letters used in their formulas.

$7$

Calculating interest earned by applying each of the methods.

$[6]$

Using the two methods to calculate the total amount to be repaid by each teacher.$[4]$

Recommendations.

CALA Tips:

$-$Remember how to calculate simple interest

$-$Remember how to calculate compound interest.

$-$Remember to check your solutions.

$-$Remember to present your work neatly.