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Compare the three amounts of interest to see if they are reasonable.
Simple interest formula maths literacy grade 10. In one year the interest he will earn is i 500 0 06 1 30. Simple interest formula is given as. When buying on credit you have to borrow money to pay for the object meaning you will have to pay more for it due to the interest on the loan. R interest rate in percentage t time duration in years.
Similarly in 6 months the interest he will earn is i 500 0 06 6 12 15. 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. Improve your skills with free problems in simple interest and thousands of other practice lessons.
Si p r t 100. As a general rule it is not wise to buy items on credit. 9 4 calculations using simple and compound interest ema6q hire purchase ema6r. Simple interest or simple interest p n i where p the initial amount n time period r interest rate and.
If the investment or loan is over a longer period we need to take this into account. If the soccer player takes a loan of r3 000 from a bank at a simple interest rate of 18 per annum calculate the amount of interest that he would have to pay if he repays the loan over 1 year using the formula.
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