S
it is the interest calculated on the principal amount only, without compounding.
simple interest
it is the principal in a simple interest formula.
principal or principal amount
The percentage of the principal charged as interest over a specific period.
rate of interest
It is the duration for which the money is invested or borrowed, typically expressed in years.
time
The method of calculating interest using 365 days.
exact interest
Hope Slater borrowed $40,000 for office furniture. The loan was for 6 months at an annual interest rate of 4%. What is Hope’s interest?
$800
$40,000 x 0.04 x (6/12) = $800
How many days are there when calculating exact interest?
365 days
Karen borrowed $13,000 from Scott at 3.5% for 287 days. Using the exact-days method, How much is the interest for the loan?
Interest = 357.77 USD
Raini has $750 in a savings account that pays 3% simple interest. How much interest will he earn in 9 months?
16.88 USD
How many days are there when calculating ordinary interest??
360 days
Hope borrowed $40,000. The loan was for 18 months at a rate of 4%. What is the interest?
$40,000 x (18/12) x 0.04 = $2,400
$2,400
$250 invested at 2.85% for 3 years
$21.380
Claire deposits $3600 at 5% per annum for 2 years. How much simple interest does she earn?
$360
interest based on 360-day year or also called Banker's Interest
ORDINARY INTEREST
the amount of paid for the use of another amount of money
INTEREST
On March 4, Joe Bench borrowed $50,000 at 5%. Interest and principal are due on July 6.
Use exact interest!
27 days in March, 30 days in April, 31 days in May, 30 in June and 6 in July = 124 total days
$50,000 x 0.05 x (124/365) = $849.32
$849.32
Irene Invested P2,500 at 16% simple interest for 125 days. what is ordinary interest?
P 138.88
SIMPLE INTEREST
$3,000, 5.5%, 24 months
$330
Find Time when, Principal = $ 1500; Interest = $ 450; Rate = 5%
Time (T) = 6 years.
Andrew gained $230 interest on the balance in his account at 7% interest p.a after 6 years. What was the principle?
$547.62
On March 4, Joe Bench borrowed $50,000 at 5%. Interest and principal are due on July 6.
Use ordinary interest!
27 days in March, 30 days in April, 31 days in May, 30 in June and 6 in July = 124 total days
$861.11 interest
Marcus has $1,800 from his summer job to invest. Suppose he invests the $1,800 for 2 years and earns $144. What is the rate of interst?
rate = 4%
Irene Invested P2,500 at 16% simple interest for 125 days. what is exact interest?
136.98 PHP
300 days from February 28, 2018
December 25, 2018
Sydney invests $9200 in a 6-month saving account. The interest rate is 2% per month. what was the interest earned
$1,104