Interest
Objective:
Solve problems involving simple interest.
Simple interest is a method of interest that always applies to the original principal amount, with the same rate of interest for every time cycle. When we invest our money in any bank, the bank provides us interest on our amount. The interest applied by the banks is of many types and one of them is simple interest. Now, before going deeper into the concept of simple interest, let's first understand what is the meaning of a loan.
A loan is an amount that a person borrows from a bank or a financial authority to fulfil their needs. Loan examples include home loan, car loan, education loan, and personal loan. A loan amount is required to be returned by the person to the authorities on time with an extra amount, which is usually the interest you pay on the loan.
But take note that it is not limited to the concept of loan, it is also applicable in savings and investments.
Simple Interest formula's
I= Simple Interest
P=Principal/Initial Amount
r=rate
t=time
Exploring Simple Interest Value by Manipulating P R T
Calculating the Principal
How long will it take?
at what interest rate?
Thank you! Hope you enjoy our lesson today :D