Maths Dictionary · JSS 3
Simple interest
Simple meaning
Interest paid only on the original amount (the principal), the same every year.
Example
₦10,000 at 5% for 3 years earns ₦1,500.
See it
From the Simple Interest lesson. Try moving things around.
Years →PrincipalInterest: the same ₦1,000 every year
Principal P₦20,000
Rate R5%
Time T3 yrs
I = PRT ÷ 100 → 20,000 × 5 × 3 ÷ 100 = ₦3,000
A = P + I = ₦20,000 + ₦3,000 = ₦23,000