Mathematical Literacy - Grade 11 - Lesson 31 - Quizizz

Define the word interest by choosing the most suited answer below.

• The amount of money that is always calculated at 10%.

• The amount of money earned or owed for the use of borrowed money.

• The word interest means per year.

• Interest is the extra R500 that gets deposited into your account

The formula used to calculate simple interest is:

• SI = i × n

• SI = p × n × i

• SI = p × i × n

• SI = i × n x p

If Peter invests R1,000.00 at 8% simple interest per annum (per year).

How much interest does he earn after 10 years?

• 808080

• 88 000

• 8000

• 80 000

If Peter invests R1,000.00 at 8% simple interest per annum (per year).

How much interest does he earn after 10 years?

• 81 000

• 82 000

• 83 000

• 84 000

What does the 'i' represent in the simple interest formula?

• The inside rate.

• The interest rate being used (% per annum).

• The interesting rate being used (% per annum).

• The indigo rate.