3.3.5

Simple Interest

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Simple Interest

Simple interest means that a percentage of the starting amount is paid at regular intervals.

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Types of simple interest

  • Annual interest is paid once per year and can be described as an amount being paid ‘per annum’.
  • Monthly interest is paid once per month.
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Calculating simple interest

  • What is the amount paid from 9% simple interest per annum on a £200 saving over 3 years?
    • To find 9% we divide by 100 to find 1% then multiply by 9 to find 9%.
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Calculating Simple Interest

  • What is the amount paid from 9% simple interest per annum on a £200 saving over 3 years?
    • Multiply by the number of years.

Jump to other topics

1Number

1.1Place Value

1.2Factors & Multiples

1.3Operations

1.4Fractions, Decimals & Percentages

1.5Growth & Decay

1.6Measurements & Units

1.7Accuracy

2Algebra

3Ratio, Proportion & Rates of Change

4Geometry & Measures

5Probability

6Statistics

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