VOCABULARY
what does "t" represent when you find the interest owed when you borrow money
The amount of time money is borrowed
Emilio's father borrows P1,200 from the bank for a riding lawn mower. the interest rate is 8% per year. how much simple interest will he pay if he if he takes 2 years to repay the loan?
P192
P1050 4.6% 2 years
P96.60
1,000 x .87 x t = 1740
t = 2
The amount paid or earned for the use of money
simple interest
Rain has P750 in a savings account that pays 3% simple interest. How much interest will he earn in 9 months?
P16.88
Given P250 as the principal, 2.85% as interest rate, how much will the simple interest be after 3 years.
P21.380
Jasmine deposits ₱12,000 in a savings account that earns 4.5% simple interest per year. After 8 months, she deposits ₱8,000 more into the same account at the same rate. How much total interest does Jasmine earn after 1 year from the time of her first deposit?
₱660
the amount of money deposited, invested, or borrowed
principal
Cory charged a P600 TV on his credit card with an interest rate of 21%. If he has no other charges on the card, how much will he owe after one month?
P610.50?
P500, 3.75%, 1 year
P18.75
A businessman invests ₱50,000 in a fund that earns 5.2% simple interest per year. If he withdraws his investment after 275 days, how much interest did he earn? (Assume 1 year = 365 days.)
₱1,958.90
What is "r" in the simple interest formula?
annual interest rate written as a decimal
Marcus has P1,800 from his summer job to invest. Suppose he invests the P1,800 for 2 years and earns P144. What is the rate of interest?
4%
P3,000, 5.5%, 2 years
P330
Two friends invest in separate banks: Bank A offers 4% simple interest per year, Bank B offers 3.8% simple interest per year but allows interest to be withdrawn every 6 months.
If each invests ₱15,000 for 3 years, how much more interest will the friend at Bank A earn than the one at Bank B?
₱90