Episode 2 — Financial Maths

Simple Interest

Learners will be able to:

• Calculate the amortized amount (A) using the simple interest formula A = P(1 + NI). • Determine the number of periods (N) for a two-year investment. • Identify the principal amount (P), interest rate (I), and number of periods (N) from a given problem statement. • Apply the simple interest formula to calculate the total amount after earning interest on an initial investment. • Calculate the amount of simple interest earned using the formula SI = PNI.