# SIMPLE INTERREST

Meaning of interest: interest means the extra money that you [ay back when ypu borrow money that you receive when you invest money.

EXAMPLE 1

find the simple interest on \$1,000 for 5 years at 3% per annum.

SOLUTION

Principal = \$1,000 (the amount borrowed

Time = 5 years (the period for which the money is borrowed before it is paid back in full)

Rate = 3% (extra money paid)

Simple interest = P  x R x T

100

= 1,000 x 3 x 5

100

= 10 x 3 x 5 = \$150

EXAMPLE 2

Seun deposit \$14,500 in a savings Bank account at UBA which pays an interest rate of 15% per annum for 2 ½ years. What is the simple interest?

Solution

Principal = \$14,500

Rate= 15%

Time= 2 ½ or 2.5 years

SI = P x  R x T

100

= 14500 x 15 x 2.5 = 145 x 15 x 2.5 = \$5, 437.50

100

EXERCISE

Copy and complete the table

 S/N Principlal Rate Time Simple interest 1. \$23,00 5% 4 years 2. \$19,000 6% 7 years 3. \$28,000 3% 2 years 4. \$30,000 4% \$6,000

MONEY: PROFIT AND LOSS

SIMPLE PROBLEMS ON PERCENTAGES

RATIO AND PERCENTAGE

PROFIT AND LOSS

PROBLEM ON MULTIPLICATION OF MONEY