Via Times

Does the formula P(1+r)n mean anything to you? Unless you are a mathematician, the answer is probably no, and yet of all mathematical equations, it is arguably the most important to our daily lives because banks use it to determine how much we should receive on our savings and how much we owe on our debts.

It is the formula for basic compound interest, where P stands for principle, or the amount of capital, r is the interest rate and n is the number of years. Mercifully, most of us never have to use it because the banks do the calculation for us.

However, experts say that a grasp of more basic mathematics is key to managing money, and if taught as part of personal finance in schools, it could help to erode the UK's £1.4 trillion debt mountain.