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Simple Interest

What is 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 for simple interest 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. This post will help you understand simple interest in Prelim Standard Math.

Simple interest broken down

The video below helps explain concepts you might have been taught in your junior years and how they apply to the Prelim Standard Math course.

How to calculate simple interest

The following videos explain how to approach a variety of simple interest problems.

Part 1: How to calculate simple interest

Part 2: How to calculate yearly interest using the simple interest 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