Topic : Simple Interest

YR: 9    

9/24/20
 Learning objective:
1.To understand what simple
interest is.
2.Work out simple interest.
3. To apply simple interest and
find the rate of interest
Curriculum reference/
curriculum standards
Define percentage as 'number
of parts per hundred', interpret
percentages and percentage
changes as a fraction or a
decimal, interpret these
mulitiplicatively,express one
quantity as a percentage of
another ,
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 3 min

List of key words

Lender
Simple interest

Write a definition in your own words.

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 Success criteria

I can understand what simple interest is.

I can Work out simple interest.

I can find the rate of interest from simple

interest

9/24/20
5 min
STARTER/PRE ASSESSMENT

Mental Math
1. 7 x 1000 + 8 x 100+ 5x 10 + 2 x 1 =
2. Workout ( 5 +7) x (12-9)
3. Which of these numbers are prime
19 21 23 25 29
4. Half of 29 .
5. Subtract five from negative four.

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Joe borrows £200 from the bank at 6% simple
interest for 3 years. What interest does he owe,
and what is his total balance (amount to payback)?
P  200
r  6%  0.06
t3
Interest Balance
I  P r  t Balance = P + I
I  (200)(0.06)(3) Balance = 200 + 36
I  36 Balance = 236
Interest owed  $36 Balance = $236
Find the annual simple interest rate.
1) $2000 earns $420 simple interest over 3 years.
P  2000
I  420
t  3 years
I  P r  t
420  (2000)(r)(3)
420  6000r
6000 6000
0.07  r
Annual Interest Rate  7%
Find the annual simple interest rate.
2) $625 simple interest is earned on a 2 year loan
of $5000. P  5000
I  625
t  2 years
I  P r  t
625  (5000)(r)(2)
625  10,000r
10,000 10,000
0.0625  r
1
r  6.25% or 6 %
4

1. Sam takes a loan of £ 400.
He pays simple interest of 4 %
per month for nine months .
a. Work out the amount of
interest Sam pays each
month.
b. Work out the total amount
of interest Sam pays
2. Harry pays 2.5% monthly
interest on a loan of £ 3800.
He pays interest for one year.
c. Work out the amount of
interest he pays each month
. payment as a percentage of the
d. Work out the total amount
of interest Sam pays .
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Activity
1. Rebecca takes out a loan
1. Graham has a loan of £ 600.
of £630 and pays 2.1%
He pays £ 10.80 simple interest
simple interest every week
per month.
for 12 weeks .
Work out the rate of interest
2. Ntuse takes out a loan of
2. Aaliyah takes out a loan of
£720 and pays 1.7%
£3600 to buy a new car.
simple interest every week
She pays £ 691 20 simple
for 14 weeks.
interest monthly for two years .
3. Kezia takes out a loan of £
a.Work out the rate of interest .
790 and pays 1.4% simple
b. Work out her total interest
interest every week for 15
weeks.
original loan .
4. Workout who pays the
most interest.
 SELF ASSESSMENT

ANSWERS
ANSWERS ANSWERS

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STRETCH AND CHALLENGE

. Elspeth took out a loan.

She paid 2.2% simple interest monthly for eight months,then 3.5% simple interest
monthly for the next eight months.
The total amount of interest she paid was 1710.
How much was the loan?
 CROSS CURRICULAR LINK/RLA/UAE LINK

1) Browse the link

https://
www.investopedia.com/terms/p/personal-interest.asp
2. Search for ..
Unsecured vs. Secured Loans
Average Interest Rate on a Personal Loan

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 Success criteria

I can understand what simple interest is.

I can Work out simple interest.

I can find the rate of interest from simple

interest

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 PLENARY

1. . You deposit £400 in to a bank account paying 5% simple interest per year. How much interest would you
have earned after 3 years? (3 Marks)
2. Angelie pays £16.08 monthly interest on a loan of £ 670.Work out the rate of interest. (4 marks)

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 NEXT STEPS
Percentage increases and decreases..

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