WEEK FOUR

TOPIC: SIMPLE INTEREST

Meaning of interest: interest means the extra money that you [pay back when you borrow money that you receive when you invest money.

EXAMPLE 1      

find the simple interest on $1,000 for 5 years at 3% per annum.

SOLUTION

Principal = $1,000 ( the amount borrowed

Time = 5 years ( the period for which the money is borrowed before it is paid back in full)

Rate = 3% ( extra money paid)

 Simple interest = P  x R x T

                                  100

                                = 1,000 x 3 x 5

                                             100

                      = 10 x 3 x 5 = $150

EXAMPLE 2

 Seun deposits $14,500 in a savings.... View More