Hiyas,

now I will be talking about Simple interest.

Simple interest is interest payable on the principal alone. The interest is charged each year for the period of the loan.

Here's the example question:

Ali borrows $1000 from the local bank to buy a guitar at a simple interest rate of 6 per cent over a period of 5 years.
So,
How much simple interest does ali have to pay?

Answer:

Ali has to pay 6/100 x $1000 = $60 each year.

Ali has to pay a total amount of interest of $60 x $5 = $300.


Yup!

There you are!

Is it complicated? feel free to comment!

Signing off,

I <3 maths :)

Sean See fell apart on 4:42 AM.