SIMPLE INTEREST

Get Started. It's Free
or sign up with your email address
SIMPLE INTEREST by Mind Map: SIMPLE INTEREST

1. DEFINITION

1.1. A method to calculate the amount of interest based on the rate of interest,period of the interest, and the principle. Usually we can find the interest when we make a loan.

2. THE FORMULA

2.1. SI=P(Principle/deposite) x T(Time in years) x R(Rate of interest) /100

3. PRESENT VALUE

3.1. Amount of old money or deposites

4. FUTURE VALUE

4.1. Amount of new money or the amount of present money plus with the amount of simple interest.

5. THE PROBLEMS

5.1. 1. The first question we just need use the formula of simple interest . But we need to bear in mind that time of interest must in year

5.2. 2.Second question just use the formula also . Identify the simple interest. time of interest and the principle . then , find the rate of the interest

5.3. 3.Then, the question ask us to find the rate of interest .Given that two years simple interest. Then we find the difference of simple interest and time of interest between that years. Then we find simple interest in 1 year . Simple interest 1 year equal to 104 the for two years 208 . Then we can proceed by using the formula .

5.4. 4.The question also asked the rate of interest . If the new money equal to double of old money plus simple interest . That's mean simple interest equal to the principle . Then . just proceed using the formula.

5.5. 5.The question ask the amount of prnciple between the bank . The difference between these bank are the rate of interest . Then just use the formula and simple mathematics to solve the question

5.6. 6 The question ask the present value or the principle . since we know that the new money equal to old money minus simple interest . Then, just use these two formula to solve the question .

5.7. 7,The question ask for the rate interest . Snce rate interest same with the period . Then we just use the formula to solve it

5.8. 8.The questions ask for the principle . Just use the formula since we know that the simple interest is 100 . The answer will be in algebra

5.9. 9.This question ask for how much need to pay . For the first need to be pay 210 then he pay 100 . then the remainder is 110 . Then just use the formula

5.10. 10. The question ask the rate . The new money are equal to 4 times old money . then just used the formula .