Episode 3 — Financial Maths

Simple Interest

Learners will be able to:

• Identify the formula for simple interest (A = P(1 + N*I)). • Explain the meaning of each variable in the simple interest formula (P, A, N, I). • Calculate the number of periods (N) when given a yearly rate and monthly repayment period. • Apply the simple interest formula to solve problems involving simple interest. • Determine the amount of simple interest earned using the formula SI = P*N*I.