Problem 1 : A person deposits $5,000 in a bank account which pays 6% simple interest per year
Let us plug these values in the above formula
If you borrow from the bank to buy a car, the bank will charge you interest for its use
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6-3 (E)Simple Interest
Example: calculate the simple interest on $1000 deposit at an annual interest rate of 5% for 2 years
of period (Years) SI= Simple Interest (Rupees) 5
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The manager of the bank informs Ron that $100 deposited in the bank one year before has now become $110
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This lesson teaches how to use the simplest interest formula to find interest earned or paid
Example 1: Finding Interest on a Loan First, find the interest she will pay
09 for 9%
The basic idea is that after the first interest period, the amount of interest is added to the principal amount and then the interest is computed on this higher principal
Interest is about $11
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This video explains how to solve a problem using the simple interest formula
Simple Interest Formula I = PRT I = PRT I = interest earned (amount of money the bank pays you) P = Principle amount invested or borrowed
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