Scribd Logo
Upload

Welcome to Scribd!

  • 0 views

    Inbound 7398298128487698071

    Uploaded by

    Lz Requiso

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Inbound 7398298128487698071

    Uploaded by

    Lz Requiso
    0 views14 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    0 views14 pages

    Inbound 7398298128487698071

    Uploaded by

    Lz Requiso

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 14

    Simple Interest

    By: Yenriel Rioja Recto

    1
    Definition
    Simple interest is interest that is computed
    on the original sum.

    Formula: Principal amount * Annual


    Interest rate* Number of years

    Simple Interest is used commonly in


    variable rate consumer lending and
    mortgage loans where a borrower pays
    interest on funds used

    2
    Simple Interest

    Time
    Interest Pr in
    cip
    al Rate
    3
    Ex) You want to borrow $8000 at 7% for only 90
    days. How much interest you would like to pay?

    • I=?
    • P= 8000
    • r =7% = 0.07
    • t= 90 days= 3 months= 0.25 Year
    • I= P * r * t
    • I = 8000 *0.07*0.25= $140

    4
    Ex) Tammy borrows $55,000 to buy a car at 2.2% interest.
    How much interest will she pay if the loan is for 5 years?

    I=P*r*t
    I = 55,000 (.022)(5) = $6050 interest

    How much total will Tammy pay for the car?


    55,000 + 6050 = $61050.

    How much will Tammy have to pay each month to the


    bank for the car?
    5 years • 12 months = 60 months
    61,050 ÷ 60 = $1017.5 5
    6
    7
    8
    9
    10
    11
    12
    13
    14

    You might also like