## Financial Mathematics

Simple Interest

Financial Mathematics

*Percentage skills {revision}**Simple interest*Simple interest is the interest that is calculated each year as a fixed percentage of the original amount borrowed or invested. This fixed percentage is known as the interest rate and is usually given as per annum which means per year.

Simple interest can be calculated by using the following formula: \[I=Pin\] Where :

I = Interest

P = Principal

i = Interest rate per annum (as a decimal)

n = Time (years)

I = Interest

P = Principal

i = Interest rate per annum (as a decimal)

n = Time (years)