Understanding Simple Interest

This video tutorial by Gis covers the concept of simple interest, explaining how to calculate it using examples. It introduces the terms capital and interest rate, derives the formula for simple interest, and demonstrates its application through various examples, including loan and investment scenarios.

What is the primary focus of this class?

• Discussing financial planning

• Exploring investment strategies

• Learning about simple interest

• Understanding compound interest

In the example calculation, what is the principal amount used?

• 900 reais

• 950 reais

• 1000 reais

• 850 reais

How is the interest rate expressed in the example calculation?

• As a decimal

• As a fraction

• As a ratio

• As a percentage

What is the formula for calculating simple interest?

• Interest = Principal - Rate - Time

• Interest = Principal / Rate / Time

• Interest = Principal + Rate + Time

• Interest = Principal x Rate x Time

What is the difference between simple and compound interest?

• Simple interest is calculated on the initial principal only.

• Compound interest is calculated on the initial principal only.

• Simple interest includes interest on interest.

• Compound interest does not include interest on interest.

In the practice problem, what is the interest rate per month if the annual rate is 14.4%?

• 1.2%

• 1.4%

• 1.0%

• 1.5%

How do you convert an annual interest rate to a monthly rate?

• Multiply by 12

• Subtract 12

• Divide by 12

• Add 12

What is the total amount to be paid after 8 months for a loan of 2300 reais at 14.4% annual interest?

• 2400.00 reais

• 2500.00 reais

• 2520.80 reais

• 2600.00 reais

In the final example, how long does it take for an investment of 820 reais to earn 459.20 reais in interest at 8% per month?

• 8 months

• 9 months

• 7 months

• 6 months

What practical advice is given at the end of the class?

• Avoid saving money

• Invest in high-risk funds

• Save money before making purchases

• Always take loans for investments