# Simple interest

### Simple interest

#### Lessons

$I = Prt$ where $I$ = interest, $P$ = Principal, $r$ = interest rate, $t$ = time (in years)
• Introduction
Introduction to Simple Interest

• 1.
Discuss the Basic Concepts of Simple Interest

Thomas borrowed $100 from the bank, and the bank charges 10% annual interest rate on it. How much interest does Thomas have to pay after a year? • 2. Investigate the Advantages of Borrowing Money Dennis borrowed$1500 with an interest rate of 10% per annum to start his business. A year later he sold his business for $3000. What is his net profit? • 3. Determine the Impact of Borrowing Money for More Than One Year Hailey wants to borrow$5000 from the bank. If the interest rate is 15% annually, how much interest is she expected to be paying the bank after 3 years?

• 4.
Analyze Different Questions relating to Simple Interest

Nico is graduating high school and he decides to borrow \$800 to go on a graduation trip to Las Vegas. He wants to borrow the money at a bank with an annual interest rate of 11% for 2 years.

a)
Find the interest he will pay on the loan.

b)
How much will he have to pay the bank at the end of the two years?