Simple Interest Formula Maths Literacy

Simple interest formula is given as.

Simple interest formula maths literacy. I prt i. Si p r t 100. This equals r80 00 interest that will be charged for the first year should he invest the r1 000 00 at 8. Simple interest initial loan amount x interest rate x number of payment intervals.

This may seem high but remember that in the context of a loan interest is really just a fee for borrowing the money. A p i p prt. R interest rate in percentage t time duration in years. Comparing simple and compound interest grade 11 simple and compound interest worksheet part a equations simple interest is always calculated on the original amount put in.

The formula for simple interest helps you find the interest amount if the principal amount rate of interest and time periods are given. Where si simple interest. If you put money into a bank or building society they will pay you interest on this money. Using the simple interest formula for future value.

A p 1 r t 10 000 1 0 075 8 16 000. We can use the simple interest formula to find a formula for the amount of money a that will be in a simple interest account after t years. To determine the accumulated loan amount we use the simple interest formula. Rate the interest rate given as a decimal.

The business will pay back a total of 16 000. I prt becomes r i pt remember to use 14 12 for time and move the 12 to the numerator in the formula above. The amount a is the original principal p plus the interest i earned over the period of time t. If you have borrowed money from a bank or building society for a mortgage.

Get your calculator and check to see if you re right. Begin align a p 1 in text r text 4 760 00 left text 1 text 0 14 times 2 right text r text 6 092 80 end align. Interest the amount of new money gained in the account p.