Interest and Interest Rate Calculation
Learn how to calculate interest using the formula Interest = Principal × Rate. Let’s get started! 🚀
Video Lesson
Watch and learn the basics
Flashcards
Review key concepts visually
%20Interest%20and%20Interest%20Rate%20Calculation.webp)
%20Calculating%20Interest.webp)
%20Calculating%20Interest%20Rate.webp)
%20Calculating%20Principal.webp)
🛎️ Understanding Interest
- Interest is the extra money earned or paid on an original amount.
- The original amount is called the principal.
🛎️ The Interest Formula
- You use interest = principal × interest rate for one year.
- If the time is shorter, you take the fraction of a year.
🛎️ Calculating the Interest Rate
- You scale the interest to one year first.
- You then rearrange to find interest rate = interest ÷ principal.
🛎️ Calculating the Principal
- You rearrange the formula to make the principal the subject.
- You divide the interest by the interest rate to find it.
Practice Questions
Test your understanding
Interactive Activity
Experiment with different values to see how interest grows
Loading interactive widget...
Click here to open ChatCat