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simple interest (When money is borrowed, interest is charged for the use…
simple interest
When money is borrowed, interest is charged for the use of that money over a certain period of time. The amount of interest charged depends on the amount of money borrowed, the interest rate and the length of time for which the money is borrowed.
Principal is the amount of money borrowed. The interest rate is given as a percent. Time is the length of time in years for which the money was borrowed.
To find interest, take the product of the principal, the interest rate and the time. Thus, the formula for finding interest is:
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To buy a computer, Raquel borrowed $3,000 at 9% interest for 4 years. How much money did she have to pay back?
simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments
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