## MYP Mathematics - Simple Interest

number, algebra, geometry and trigonometry, statistics and probability, discrete mathematics.

### MYP Mathematics - Simple Interest

MYP Mathematics, Financial Mathematics, Simple Interest

How can we calculate the amount borrowed if the interest paid for this loan is \$3000 at a rate of 5% per annum over 24 months?

Thanks
Lucas

Posts: 0
Joined: Mon Jan 28, 2013 8:05 pm

### Re: MYP Mathematics - Simple Interest

The simple interest is given by the following formula

$I=P \cdot r \cdot n$

Where I is the amount of interest, P is the principal, r is the simple interest rate per annum and n is the time in years.
Regarding your question about the calculation of the simple interest we have that

$\3000=P \cdot 0.05 \cdot \frac{24}{12}=>P=\frac{3000}{0.1}=\30000$

Hope these help!
miranda

Posts: 268
Joined: Mon Jan 28, 2013 8:03 pm

### Re: MYP Mathematics - Simple Interest

thanks miranda!!
Lucas

Posts: 0
Joined: Mon Jan 28, 2013 8:05 pm

### Re: MYP Mathematics - Simple Interest

thanks miranda!!
Lucas

Posts: 0
Joined: Mon Jan 28, 2013 8:05 pm