Money that is borrowed from a bank, credit union, or any other financial institution is charged. Similarly, money that is deposited into an account at a bank, credit union, or any other financial institution receives an interest
The sum borrowed is called the Principal (P).
The interest is calculated as a % of the Principal and is called the Rate (R)
The extra sum paid or charged is the Interest or Simple Interest (S.I or I)
Example:
Calculate the interest (I) paid on a loan of $1300 at a rate of 2% per annum for period of 2 year (T). Calculate the amount that is to be paid.
Interest on $1300 at 2% for 2 year
I = (1300 x 2 x 2)/ 100 = 5200/100= $52
Amount to be paid = $1300 +$52 = $1352
Exercises
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Question 1 of 6
1. Question
Mr. Williams deposited $4600 in the bank when the rate of interest was 6% per annum. How much interest would he receive after 3 years?

I = (PRT) ÷ 100
Amount of interest after 3 years = ( ) ÷ 100 = $ ⇐ Answer
CorrectIncorrect 

Question 2 of 6
2. Question
Sammy borrowed money for a bicycle. He intends to pay an interest of $340 for a period of 2 year at an interest of 10% per annum.
What sum of money did Sammy borrowed?

I = (PRT) ÷ 100
$340 = (P x 10 x 2) ÷ 100
P = ÷
P = ÷ = $
Answer = Sammy borrowed $
Correct 6 / 6 PointsIncorrect / 6 Points 

Question 3 of 6
3. Question
Mr. Harry took a loan from the bank to purchase a car. he was given four years to repay the loan and the interested amounted to $9000 charged at a rate of 8% per annum. How much money did he borrow?

I = (PRT) ÷ 100
$9000 = ( ) ÷ 100
P = ÷
P = ÷ = $
Answer = Mr. Harry borrowed $
CorrectIncorrect 

Question 4 of 6
4. Question
Complete the simple interest table below.

Principal Rate Time Interest p.a Amount $200 5% 3 years 10% 6 months $18 $800 5 years $1280
Correct 6 / 6 PointsIncorrect / 6 Points 

Question 5 of 6
5. Question
Mark has save $7000 in a bank for the past 30 months at 11% per annum. How much interest has he earned to date?

I = (P x R x T) ÷ 100
I = ) ÷
I = ÷ = $ ⇐ Answer
Correct 5 / 5 PointsIncorrect / 5 Points 

Question 6 of 6
6. Question
Jillian wants to buy a new phone worth $1200. She had deposited $800 in an account at a rate of 8% per year for 3 years. Does she have enough to buy the new phone? Yes or no?

I = ÷ = $
She has in the account = $ = $
Answer =
Correct 6 / 6 PointsIncorrect / 6 Points 