## Simple interest rate word problems

The rate is usually given in percent, which you will need to change to a decimal value. Word Problems with one Simple Interest. Example 1: John wants to have an

What had been the interest rate? example 6: You deposit $\$350$into a bank account paying$1.2\%$simple interest$\text{per month}$. If you receiver$\$9$  Ramchacha takes a loan amount of 240000 from a bank for constructing a house at the rate of simple interest of 12% per annum. After 1 yr. of taking the loan he  The following word problems are the problems on the worksheets with answers on the second page. 1. If an investment over nine years at a rate of $288.00 results Simple Interest is the rate at which we lend or borrow money. Coin Toss. VST Permutations and Combinations Problem 1 and its Solution 16y + 12y + 36y = Rs. 320000 or in other words, we can write 64y = Rs. 320000 and y = Rs. 5000. where: I = simple interest. P = principal (amount invested) r = rate of interest per interest period (e.g., 10% per year) t = number of interest periods (e.g., 2 years). ## We observe from the above example that, the Interest cannot be calculated without Principal, Rate and Time. Therefore, we can conclude that Simple Interest (S.I.) We observe from the above example that, the Interest cannot be calculated without Principal, Rate and Time. Therefore, we can conclude that Simple Interest (S.I.) His bank offers him an interest rate of 6 % 6\% 6%6, percent per annum. How much money should he deposit in the bank? Problem: To buy a computer, Raquel borrowed$3000 at 9% interest for 4 years. Procedure: To find interest, take the product of the principal, the interest rate  Determine the simple interest rate applied to a principal over 20 years if the total interest paid equals the borrowed principal. Exercise 4. How long does it take a  The rate is usually given in percent, which you will need to change to a decimal value. Word Problems with one Simple Interest. Example 1: John wants to have an  A = Accumulated value (final value ). P = Principal (initial value of an investment). r = Annual interest rate. I = Amount of interest. n = number of years

### Understanding simple interest is fundamental to your financial health. When lending money: You typically set a rate and earn interest income in exchange for An easy trick for remembering this is to think of the word percent as "per 100.

Understanding simple interest is fundamental to your financial health. When lending money: You typically set a rate and earn interest income in exchange for An easy trick for remembering this is to think of the word percent as "per 100. What had been the interest rate? example 6: You deposit $\$350$into a bank account paying$1.2\%$simple interest$\text{per month}$. If you receiver$\$9$  Ramchacha takes a loan amount of 240000 from a bank for constructing a house at the rate of simple interest of 12% per annum. After 1 yr. of taking the loan he