Interest: Interest is the amount of money we pay for the use of some amount of money.
Types of interest: There are two types of interests,
a) simple interest
b) compound interest
Simple interest: Simple interest is the Interest paid / compensated only on the original principal, not on the interest accrued
Compound interest:Compound interest means that the interest Which includes the interest calculated on principal amount using the Compound Interest Formula .
Algebra Simple interest Formula :
Algebra Formula to find simple interest :
Simple interest I = PNR
Where, P is the Principal amount, R is the Rate of interest, N is Time duration.
When we knows interest I we can find p, n or r using the same formula ,
Different forms of algebra simple interest formula
P= `(I)/(NR)`
N=`(I)/(PR)`
R=`(I)/(PN)`
Algebra Problems on Simple Interest formula:
Ex 1:Interest Rate: 1% each year ,Starting Balance: $147 ,Time Passed: 6 year . Find the simple interest? What is the new total balance?
Solution:Algebra Formula for Simple Interest: I = PRT
P = principle = starting balance = $147
R = interest rate = 1%
T = time = 6 years
I = interest = principle × interest rate × time = 147 × `(1)/(100)` × 6 = $8.82
New Balance = starting balance + interest accrued = $147 + $8.82 = $155.82
I= $ 8.82, New Balance = $155.82
Ex 2:Interest Rate is 2% each year, Starting Balance is $184 ,Time Passed was 3 years .How much interest has ensued if we are
using simple interest? What is the new total balance?
Solution:algebra simple interest formula = PRT
P = principle = starting balance = $124
R = interest rate = 2 %
T = time = 9 year
I = interest = principle × interest rate × time = 124 × `(2)/(100)` × 9 = $22.32
New Balance = starting balance + interest accrued = $124 + $22.32 = $146.32
Interest = $22.32, New balance = $146.32
Ex 3 :John invests 1200 at the rate of 6.5 percent per annum. How long it will take john earns 195 in interest ?
Solution : Algebra Simple interest formula = I = PTR/100
195 = (`(1200 * T*6.5)/(100)`) / 100
T = 2.5
John will earn $195 in interest in 2.5 years.
Types of interest: There are two types of interests,
a) simple interest
b) compound interest
Simple interest: Simple interest is the Interest paid / compensated only on the original principal, not on the interest accrued
Compound interest:Compound interest means that the interest Which includes the interest calculated on principal amount using the Compound Interest Formula .
Algebra Simple interest Formula :
Algebra Formula to find simple interest :
Simple interest I = PNR
Where, P is the Principal amount, R is the Rate of interest, N is Time duration.
When we knows interest I we can find p, n or r using the same formula ,
Different forms of algebra simple interest formula
P= `(I)/(NR)`
N=`(I)/(PR)`
R=`(I)/(PN)`
Algebra Problems on Simple Interest formula:
Ex 1:Interest Rate: 1% each year ,Starting Balance: $147 ,Time Passed: 6 year . Find the simple interest? What is the new total balance?
Solution:Algebra Formula for Simple Interest: I = PRT
P = principle = starting balance = $147
R = interest rate = 1%
T = time = 6 years
I = interest = principle × interest rate × time = 147 × `(1)/(100)` × 6 = $8.82
New Balance = starting balance + interest accrued = $147 + $8.82 = $155.82
I= $ 8.82, New Balance = $155.82
Ex 2:Interest Rate is 2% each year, Starting Balance is $184 ,Time Passed was 3 years .How much interest has ensued if we are
using simple interest? What is the new total balance?
Solution:algebra simple interest formula = PRT
P = principle = starting balance = $124
R = interest rate = 2 %
T = time = 9 year
I = interest = principle × interest rate × time = 124 × `(2)/(100)` × 9 = $22.32
New Balance = starting balance + interest accrued = $124 + $22.32 = $146.32
Interest = $22.32, New balance = $146.32
Ex 3 :John invests 1200 at the rate of 6.5 percent per annum. How long it will take john earns 195 in interest ?
Solution : Algebra Simple interest formula = I = PTR/100
195 = (`(1200 * T*6.5)/(100)`) / 100
T = 2.5
John will earn $195 in interest in 2.5 years.
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