SIMPLE INTERREST Archives | School Portal NG

Meaning of interest: interest means the extra money that you [ay back when ypu 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 deposit $14,500 in a savings Bank account at UBA which pays an interest rate of 15% per annum for 2 ½ years. What is the simple interest? Solution Principal $14,500 Rate 15% Time 2 ½ or 2.5 years SI P x R x T 100 14500 x 15 x 2.5 145 x 15 x 2.5 $5, 437.50 100 EXERCISE Copy and complete the table S/N Principlal Rate Time Simple interest 1. $23,00 5% 4 years 2. $19,000 6% 7 years 3. $28,000 3% 2 years 4. $30,000 4% $6,000 See also MONEY: PROFIT AND LOSS SIMPLE PROBLEMS ON PERCENTAGES RATIO AND PERCENTAGE PROFIT AND LOSS PROBLEM ON MULTIPLICATION OF MONEY