Simple Interest
Maths: Edexcel GCSE Higher, topic 3.9.1
Simple Interest
Simple interest means that a percentage of the starting amount is paid at regular intervals.
,w_800.jpg)
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.
Calculating simple interest
- The amount paid from 9% simple interest per annum on a £200 saving over 3 years would be:
- 3 × 0.09 × £200 = £54.
Test yourself on Simple Interest
What type of interest is it when a percentage of the starting amount is paid at regular intervals?
What would be the amount paid from 20% simple interest per annum on a £200 saving over 2 years?
What would be the amount paid from 5% simple interest per annum on a £500 saving over 4 years?
What would be the amount paid from 10% simple interest per annum on a £800 saving over 10 years?