Financial Mathematics Part 1
Gr 12

The Grade 12 Financial Mathematics Part 1 module extends learners’ understanding of interest, growth, and depreciation by introducing more advanced financial concepts used in real-world banking, investment planning, and economic decision-making. This chapter deepens mathematical reasoning and prepares students for the more complex financial calculations required later in Grade 12.

Learners revise simple and compound interest before moving into effective and nominal interest rates, comparing investments with different compounding periods, and analysing the impact of inflation and real interest rates. The lessons guide students through using financial formulas accurately, understanding the time value of money, and interpreting financial scenarios using timelines and step-by-step reasoning. Emphasis is placed on selecting appropriate formulas, checking the validity of answers, and interpreting results in context.

By the end of this module, learners will be able to compare financial products confidently, calculate effective interest rates, and analyse the real value of money over time—skills that are essential for both the Grade 12 curriculum and real-life financial literacy.