Term definitions such as principle, interest, time and rate.
How to manipulate formulas to re-arrange for unknown values.
How to convert between decimals, fractions and percentages.
That a quantity can grow by a set amount over a set period of time.
I can calculate the simple interest of a quantity.
What is a percentage?
Why is a percentage always out of 100?
What is Interest?
Interest is something that occurs when people borrow money.
When people borrow money, it usually costs them something in order to borrow a set amount of money. No businesses out there will be willing to lend people money without getting something back in return. In order to protect themselves, they charge something in return and what lenders charge is calledinterest.
Formula for Calculating Interest
I = PRT
I – Interest earned
P – Principle (amount starting/amount invested)
R- Rate (how much does it grow)
T – Time (length invested)
The formula in order to calculate interest is principle multiplied by the interest rate (usually per year) multiplied by the time.