Simple interest
To find the simple interest, use this formula:
Interest = Principal × Rate of interest × Time
The principal is the amount of money you borrow or invest.
The rate of interest is the percent charged for the use of money
Exercises #1:
Compute the interest if the principal is 2000 dollars at a rate of interest of 5% for 4 years.
Using a calculator,
Interest = 2000 times 5% times 4 = 2000 times 0.05 times 4
Interest = 100 times 4 = 400
Exercises # 2
Compute the interest if the principal is 2,000,000 dollars at a rate of interest of 4 % for a year
Using a calculator,
Interest = 2,000,000 times 4 % times 1
Interest = 2,000,000 times 0.04 times 1
Interest = 80,000 times 1 = 80,000
If you have 2 millions dollars and your bank pay you 4% interest every year, you will earn 80, 000 dollars every year.
Great, you can quit your day time job!
Fun math game: Destroy numbered balls by adding to 10
