Introduction
Yesterday we learnt about interest and how to calculate interest. Today onwards we will be focusing on simple interest and compound interest.
Our main focus today is Simple interest.
There are three elements of simple interest :
- Principal
- Rate
- Time(in years)
Note:if the time is in months, t can be found using the ratio number of months devised by number of months (12).
This is the formula to express simple interest :
I=P(principal) ×R(rate) ×T(time)
Task
Activity
1. You retired at the end of the term and decided to borrow R50 000 to go on a trip to Japan. You go to the bank and borrow the money at 11% for two years.
(a) Find the interest rate you will pay on the loan.
(b) How much will you have to pay at the bank at the end of 2 years?
2. John invested R5 000 in Ana account to pay 5% interest if the interest is paid four times a year, how much is the interest payment.?
Process
Visit the following link to familiarize yours self on when in real life context you can use the formula for simple interest.
Evaluation
| Folling instructions | 1mark | ||
|---|---|---|---|
| Correct steps | 1mark | ||
| Correct final answer | 2marks |
TOTAL MARKS: 10
Conclusion
Simple interest consist of three components
Principal amount
Rate
Time.
Make sure you go through the rubric and you understand what is required from you.
You may begin with your class activity!
Credits
Teacher Page
Teacher: SIBISI TS 217125107
Email address:217125107@mycput.ac.za
Consultation time: 10-12
Note: don't consult me regarding the activity not unless there Typing errors, as I have provided the links for more information.