Simple Interest

[Admin]

#15256

Simple Interest

I = PRN
where: I = interest
P = principal, original amount borrowed or invested
r = interest rate as a decimal ie. divide the percent by a hundred
n = length of the loan or investment

 

[Admin]

#18598

Samantha invested $4500 in an account for 3 years at an annual flat rate of interest. At the end of the 3 years, the original investment had grown to $5310.

Find the amount of interest by subtracting the new amount from the initial investment
Interest = $5310 – $4500
= $810

Interest Rate = $$\frac{interest}{investment}\times 100$$
R = $$\frac{810}{4500}\times100$$
= 18% which is for the 3 years
18 ÷ 3
= 6% pa

[Admin]

#18600

Anusha borrows $9900 in a flat-rate loan over 3 years, with interest changed at 9% per annum. Calculate the amount of each monthly repayments.
I = 9900 × 9% × 3 = $2673	find the flat/simple interest using I = PRN
= 9900 + 2673 = $12 573	To find total repaid = loan + interest
monthly repayment = 12573 ÷ 36 = $349.25	the monthly repayment will be the total divided by the number of months: 3 years = 36 months

[Author]

Posts