SHS Math Club Online Tutorial Classes

Topic:
SIMPLE INTEREST

Prepared :

Rinoel Vicoy
Ayesha M Buale
SHS Math Club officers
Rowel R. llaca
SHS Math Club Adviser
Simple interest is a quick and easy method to calculate
interest on the money, in the simple interest
method, interest always applies to the original
principal amount, with the same rate of interest for
every time cycle. When we invest our money in any
bank, the bank provides us interest on our amount.
The interest applied by the banks is of many types ,one
of them is simple interest. 
 Simple Interest Formula
Simple interest is calculated with the
following formula: I = P × r × t, where P =
Principal, r = Rate of Interest in % per
annum, and t = Time, usually calculated as
the number of years. The rate of interest is
in percentage r% and it is going to be r/100.
• Principal: The principal is the amount that initially borrowed
from the bank or invested. The principal is denoted by P.
• Rate: Rate is the rate of interest at which the principal
amount is given to someone for a certain time, the rate of
interest can be 5%, 10%, or 13%, etc. The rate of interest is
denoted by R.
• Time: Time is the duration for which the principal amount is
given to someone. Time is denoted by T.
• Amount: When a person takes a loan from a bank, he/she
has to return the principal borrowed plus the interest
amount, and this total returned is called Amount.
Percentage to Decimal

30%
 

30%
 
Tip: Move the decimal point
=0.3 twice to the left.
100 %
10.5%
 

5%
 

10.5%
 

5%
 

=0.05 =0.3
100% 100 %
SIMPLE INTEREST FORMULA
   
To get I: To get r:
I=Prt
r= To get the total amount:
To get P:
To get t: A=P+I
P=
t=
Deriving Simple Interest formula:
To get the time, principal, or rate.
We can derive:
I=Prt
     
To get P: To get r: To get t:

  𝐈   𝐈   𝐈
𝐏= 𝐫= 𝐭=
𝐫𝐭 𝐏𝐭 𝐏𝐫
Problem: 
Micheal's father had borrowed Php30,000 from
the bank and the rate of interest was 5%. What would
the simple interest be if the amount is borrowed for:
a.8 months
I=Prt   8 months to year:
=(30,000)(.05)(0.66)
= Php 990   rate(%) to decimal:

b.9 months   9 months to year:

I=Prt
=(30,000)(.05)(0.75)
= Php 1,125
Problem
Robert deposits Php 30,000 in State Bank
of India for 3 year which earn him an
 
To get r: interest of Php.7,200.What is the rate of
the amount deposits?
Solution:    𝐈
𝐫=
𝐏𝐭
 

=
=0.08
r=8%
Quiz: Solve the given Problem
1. Paul purchased a car worth Php1,200,000, he
borrowed the money from the bank at 10%
per annum for a period of 5 years.

a.Find the interest earned.

b.How much amount he has to pay after the
period?
  
2. A 4 months loan of Php.5,000 is made with a
total of Php.1,600 simple interest. Find the rate
.
 Thank You For Attending
this SHS Math Club Online Tutorial,
We hope you learn something.

See you next time!

- SHS Math Club Officers
- SHS Math Club Adviser