Introduction
You are going to learn about simple interest, the meaning of its concept and how to calculate it.
Task
Please watch the videos below and answer the questions.
Questions
1. What is meant by the concept '' simple interest'' ?. (2)
2. Ricardo takes a loan of R10000 from a bank for a period of 1 year. The rate of interest is 10% per annum. Find the interest and the amount he has to the pay at the end of a year. (4)
3. Namita borrowed R50,000 for 3 years at the rate of 3.5% per annum. Find the interest accumulated at the end of 3 years. (4)
4. Mohit pays R9000 as an amount on the sum of R 7000 that he had borrowed for 2 years. Find the rate of interest. (4)
5. What is the formula used to calculate simple interest?. (2)
Process
From the instructions above you are expected to watch the videos and develop a full understanding of simple interest.
Resources:
Morisson, K. 2011.Study & Master. Cape town. University Press
Evaluation
This rubric will be used for marking:
understanding the concept (2 marks)
Correct calculations (8 marks)
Applying the correct formula in all calculations (6 marks)
Conclusion
Write the summary of what you learnt from the above videos.
Comment on the above videos.
Make notes about the concept "simple interest".
Credits
Teacher Page
Simple interest is the interest paid or computed on the original principal only of a loan or on the amount of an account.
Some advantages for simple interest is when you have to find short term loans, which is easier to find and when you have to borrow money. Its disadvantages are ignoring the compound and when the interest on interest doesn't have to be paid for.
For any Queries: