# Simple interest

1 de Aug de 2015
1 de 6

### Simple interest

• 2. Amount of money borrowed from anywhere is known as the principal. The institution would then charge an amount/sum on lending out the money. The amount charge is calculate on a certain percent per annum or rate of interest (rate per cent per annum). This is simple interest only if the principal in the calculating interest, remains the same each year during the loan period. So amount to be repaid are: (a)amount borrowed (principal) and (b)interest payable on the loan.
• 3. Simple Interest Equation P = Principal R = Rate per cent per annum T = Time in years I = Interest
• 4. Mr. Esquivel makes a loan of \$12,000 at a local bank at a simple interest rate of 5% per annum for 4 years. (a)Calculate the simple interest payable? (b)Calculate accruing amount of the loan. (c)Calculate the monthly instalments. Facts: Principal = \$12,000 Rate = 5% Time = 4 years Interest = ? (a) Equation Interest payable (b) Accruing amount (c) Monthly instalment A = P + I A = \$(12,000 + 2,400) A = \$14,400 I = \$2,400.00
• 5. Please your comments or questions at the bottom for clarity if needed. Email castellanos72.hector@gmail.com or hcastellanos.glhsed@gmail.com.
• 6. Please your comments or questions at the bottom for clarity if needed. Email castellanos72.hector@gmail.com or hcastellanos.glhsed@gmail.com.