Definition
What is interest?
The fee for borrowing money.
John borrowed $500,000 from a bank at an interest rate of %50 to be repaid within the next 8 years.
What is the principal of the question?
$500,000
The money borrowed.
Principal
James borrowed $100,000 from the bank, which was borrowed at an interest rate of 10% and he had 6 years to repay. How much money did James pay for interest to the bank?
$60,000
What is the principal?
This is the amount of money borrowed
James borrowed a total of $5000 from a bank and pays an interest of $900.
How much money did he pay the bank in total
$5900.
Written in percentage
Interest
Jenny borrowed $500,000 from the bank at an interest rate of 5% per annum, with 6 years to repay. Calculate the amount of interest Jenny would have to repay the bank.
$150,000
What is Simple Interest?
An easy method of calculating interest for a loan over a time frame.
Jayden signed a contract with the bank which gave him a loan of $300,000 to be repaid at an interest rate of 15% for the next 5 years.
What is the time?
5 years
Amount of time to repay the loan.
Time
Tom borrowed a sum of $30,000 from the bank. He had a total of 4 years to repay the bank with an interest rate of 8 percent? What is the amount of interest he had to repay?
$9600
What is the formula for simple interest?
principal x rate x time divided by 100
What is missing from the formula below?
P x R x T
divided by 100
The final amount after the calculation.
Niel loaned John a total of $50,000 and she told him 6 months to repay with an interest rate of 4%. How much money did Daniel collect for interest?
$12,000