Simple Interest Success Criteria Learning Intention 1 To

Simple Interest Success Criteria Learning Intention 1. To introduce the terms Interest, Rate, pa and Deposit. 1. To be able to understand terms Interest, rate pa and Deposit 2. To show to calculate the simple interest for 1 year 2. Can calculate Simple Interest for 1 year. 3. To show to calculate the amount after interest is paid 3. Can calculate Simple Interest for part of a year 4. To show to calculate the interest for part of a year

What is Interest If you DEPOSIT money in a bank account then the bank will pay you a percentage as INTEREST The RATE of interest is given as a percentage per annum is another phrase for per year John DEPOSITS £ 200 SCOTIA BANK rate of interest 3. 2% p. a. Interest ( 1 yr ) = of Jill DEPOSITS £ 600 Interest ( 1 yr ) = of

How to Calculate Interest ( 1) The 1 st step in all Simple Interest questions is to calculate the Interest due for 1 year ( annum ) Find the Interest a bank will pay on a Principal of £ 400 when the Interest rate is 7. 5% p. a. Interest ( 1 Year ) = 7. 5% of £ 400 =7. 5 = £ 30 ÷ 100 % of x 400

How to Calculate Interest ( 2) The 1 st step in all Simple Interest questions is to calculate the Interest due for 1 year ( annum ) Find the Interest a bank will pay on a Principal of £ 400 when the Interest rate is 7. 5% p. a. Interest ( 1 Year ) = = = 7. 5% of £ 400 7. 5 100 400 x ÷ 100 = £ 30 7. 5% is 7. 5 out of 100 400 x 7. 5

Calculating Interest for 1 year (a) £ 730 at Rate of 2% p. a. = = (b) £ 290 at Rate of 4% p. a. = = £ 1000 at Rate of 3. 5% p. a. = = (c) (d) £ 300 at Rate of 5% p. a. = = (e) £ 880 at Rate of 7% p. a. = = (f) £ 140 at Rate of 8% p. a. = = £ 470 at Rate of 10. 5% p. a. = = (g) √ ² C x ÷ 5 6 7 8 9 + - On 0 1 2 3 4 . = Ans (-) Show Ans Start C Next 0

Amount in Bank after Interest Banks automatically add interest to your bank account AMOUNT = What you had in bank ( Principal ) + Interest Rate of Interest 10. 5% £ 600 p. a. Money in Bank Interest(1 yr) = = 10. 5 = Amount = = Original + 2. 1 Interest of √ ² C x ÷ 5 6 7 8 9 + - On 0 1 2 3 4 . = Ans (-) Setup Next 600 0

Amount = Principal + Interest Amount (a) £ 140 at Rate of 10. 5% p. a. = = (b) £ 920 at Rate of 8. 9% p. a. = = (c) £ 1050 at Rate of 3% p. a. = = (d) £ 720 at Rate of 7. 3% p. a. = = (e) £ 450 at Rate of 9. 5% p. a. = = (f) £ 800 at Rate of 4% p. a. = = (g) £ 560 at Rate of 1% p. a. = = Show Ans Start C Next √ ² C x ÷ 5 6 7 8 9 + - On 0 1 2 3 4 . = Ans (-) 0

Interest : Part of a year Karen deposited £ 2000 in her bank account in April. The bank pays a rate of 4% Interest per annum 6 months later she decided to buy a car and asked the bank teller how much interest she would get Half of the interest due for 1 year Interest for 1 year = 4% of £ 2000= £ 80 ÷ 2 = £ 40 Interest for 6 month = Total in Bank = £ 2000 + £ 40 = £ 2040 Part of …. . Fraction of …. 6 12 part total = 6 ÷ 12 = 0. 5 = a half 4 ÷ 100 x 2000 80

Part of a year Rate of Interest 4% p. a. Deposit £ 970 for months = = Interest(1 yr) = 4 As the money is left in for less than a year the Interest paid will be a fraction of that paid for 1 year part Interest 4 months 970 Setup Any Month 4 x = total = = 6 Months √ ² C x ÷ 5 6 7 8 9 + - On 0 1 2 3 4 . = Ans (-) 3 Months 4 Months of 0

Interest : Part of a Year Interest due = = (b) On £ 2400 at 10. 4% for 3 month = = (c) (a) On £ 1320 at 7% for 6 month On £ 3600 at 3% for 4 month = = (d) On £ 10320 at 8% for 9 month = = (e) On £ 7440 at 6% for 2 month = = (f) On £ 4200 at 9. 1% for 1 month = = (g) On £ 8520 at 4. 5% for 8 month = = Show Ans C 3, 4 or 6 Months Start √ ² C x ÷ 5 6 7 8 9 + - On 0 1 2 3 4 . = Ans (-) Next 0

0 (-) Ans On C √ ² 7 8 9 x √ ² C x ÷ 5 6 7 8 9 + - On 0 1 2 3 4 . = Ans (-) Test 0 4 5 6 ÷ 1 2 3 0 . - = +

(a) r = 16 ; s = 65 V= = (b) r = 7 ; s = 25 V= = (c) r = 18 ; s = 82 V= = (d) r = 10 ; s = 26 V= = (e) r = 12 ; s = 37 V= = (f) r = 11 ; s = 61 V= = (g) r = 13 ; s = 85 V= = Next