SIMPLE INTEREST Archives | School Portal NG

Interest is the money paid for saving a particular amount of money. Simple interest can be calculated using the formula Simple interest I PRT/100 Where P principal, Rrate & T time Also total amount principal +interest Example 1 Find the simple interest on N60, 000 for 5 years at 9% per annum Solution Applying IPRT/100 P N 60,000 R9% T5 years I 60,000 x 9 x 5/100 N 27,000 Example 2 A man borrows N 1,600,000 to buy a house .He is charged interest at the rate of 11% per annum. In the first year, he paid the interest on the loan. He also paid back N 100,000 of the money borrowed. How much did he pay back altogether? If he paid this money by monthly instalment, how much did he pay per month? Solution P N 1,600,000 R11% T1 year Interest on N 1,600,000 I PRT/100 1600,000 x11x1/100 N 176,000 The total amount paid in the first year N 100,000 + N 176,000 N 276,000 Monthly payment 276.000/12 N 23,000 Class work Find the simple interest on the following: N 10,000 for 31/2 years at 4% per annum N 20,000 for 4 years at 4% per annum A man got N 1,800,000 loan to buy a house .He paid interest at a rate of 9% per annum. In the first year, he paid the interest on the loan. He also paid back N 140,000 of the money he borrowed. (a) How much did he pay in the first year altogether. Profit and loss percent Profit means gain, while loss is the inverse of profit. % Profit is the percentage of the gain made from a particular product or item % Profit profit/cost price x 100 To find the selling price of an article At loss cost price loss At gain cost price + profit Example A trader buys a kettle for N 800 and sells at a profit of 15%. Find the actual profit and the selling price Solution Profit 15 of N 800 15 x800 N 120 Selling price C. + profit 800+120 N 920 A hat is bought for N 250 and sold for N 220, what is the loss percent Solution Cost price C.P N 250 Selling price N 220 Lost N 250- N 220 N 30 % Loss loss/C.P x 100% 30/250 x100% 300/25 12% Class work Find the actual profit and the selling price of a material which cost #1000 sold at a profit of 15% A farmer buys a land for #40,000 and sells it for N 33,000 what is the percentage loss? A car that cost N 336,000 was sold at a loss of 17½%. What is the selling price Discount and Commission A discount is a reduction in price of goods or items. Discount are often given for paying in cash Commission: this is the payment for selling an item. Examples Find the discount price, if a discount of 25% is given on a market price of #9,200 Solution Discount 25% of N 9,200 25/100 x9, 2002,300 A radio cost N 5,400 .A 12½% discount is given for cash. What is the cash price Solution Discount 12 ½% of N 5,400 25/2x100 x 5400 25/2x100 x 5400675 Cash price N 5,400-675 N 4725 A bank charges 2½ % commission for issuing a bank draft to its customers, if a customer obtained a bank draft for N 84,000 from the bank, calculates the total cost of the bank draft. Solution Commission 22% of N 84,000 5/2/100 x 84,000 5/2x100 x 84, 000 N 2,100 Total cost of bank draft 84,000+ N 2,000 N 86,100 Class work Find the discount price if a discount of 20% is given on a market of N 2,915 The selling price of a table is N 14,000, the trader gives a 25% discount for cash, what is the cash price An insurance agent sells N 284,000 worth of insurance, his commission is 20% .How much money does he get WEEKEND ASSIGNMENT Calculate the simple interest on N 200 in 2 years at 4% per annum (a) N 160n (b) N 240 (c) N 16 (d) N 260 Calculate the simple interest on N 20,000 for 21/2 years at 2% per annum (a) N 10 (b) N10, 000 (c) N 1000 (d) N 2000 Find the simple interest on N 40,000 for 1 year at 5% per annum (a) N 100 (b) N 250 (c) N 2,590 (d) N 50 What is the simple interest on #70,000 for 1 year at 4% per annum (a) N 2,800 (b) N 2,000 (c) N 2,400 (d) N 2,300 Find the simple interest on N 10,000 for 3 years at 6% per annum (a) N 1,800 (b) N 1000 (c) N 1,850 (d) N 1,200 THEORY Find the simple interest on the following N 55,000 for 4 years at 60% per annum N 25,000 for 3 years at 5% per annum See also FRACTIONS H.C.F & L.C.M AND PERFECT SQUARES WHOLE NUMBERS AND DECIMAL NUMBERS BASIC OPERATION OF INTEGERS WEIGHT