Simple interest

Simple interest

Lessons

I=PrtI = Prt where II = interest, PP = Principal, rr = interest rate, tt = 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?