Simple Interest

Interest is paid for borrowing money. There are different ways of calculating interest. Simple interest is a fixed percentage of the amount borrowed and is calculated on the original amount. The formula used is I =Prn where I is the interest, P is the amount initially borrowed, r is the rate of interest and n is the number of time periods borrowed for. 

The video below helps explain concepts you might have been taught in your junior years and how they apply. 

How to Calculate Simple Interest

The following videos explain how to approach a variety of questions.

Part 1: How to Calculate Using the Formula

Part 2: How to Calculate Yearly Interest Using the  Formula

Part 3: How to Calculate Monthly Interest

Part 4: How to Calculate Interest on Credit Card Statements

Part 5: How to Rearrange the Simple Interest Formula to Find Unknown Values

Want to learn more? Check out more of our Preliminary Standard Maths resources here!