Simple Interest Calculations

This video tutorial explains the concept of simple interest and demonstrates how to calculate it. Starting with a basic example of lending 200 pounds at a 3% interest rate, the video shows how to compute the interest for one year and extends the calculation to multiple years. It also covers a practical example involving Dora's investment in a bank account with a 2.1% interest rate over six years. The tutorial concludes with a summary and a call to action for viewers to like and subscribe.

What is the simple interest on a loan of 200 pounds at a rate of 3% for one year?

• 9 pounds

• 6 pounds

• 12 pounds

• 3 pounds

What is the first step in calculating simple interest?

• Convert the percentage rate to a decimal

• Multiply the principal by the rate

• Divide the principal by the rate

• Add the interest to the principal

If 200 pounds is lent at 3% simple interest, how much will be owed after two years?

• 224 pounds

• 206 pounds

• 212 pounds

• 218 pounds

If a loan is taken for 3 years at a simple interest rate, how is the total interest calculated?

• Divide the annual interest by 3

• Add the annual interest to the principal

• Multiply the annual interest by 3

• Subtract the annual interest from the principal

How do you calculate the total amount owed after 10 years at 3% simple interest on 200 pounds?

• Add 90 pounds to the original amount

• Add 60 pounds to the original amount

• Add 30 pounds to the original amount

• Add 120 pounds to the original amount

What is the total interest earned on a 200 pounds loan at 3% simple interest over 10 years?

• 120 pounds

• 90 pounds

• 60 pounds

• 30 pounds

What is the total amount Dora will have after investing 600 pounds at 2.1% simple interest for 6 years?

• 675 pounds 60 pence

• 612 pounds

• 750 pounds

• 700 pounds

How much interest does Dora earn each year on her 600 pounds investment at 2.1%?

• 13 pounds

• 12 pounds 60 pence

• 13 pounds 60 pence

• 12 pounds

In the example problem, what is the total interest earned over 6 years?

• 72 pounds

• 75 pounds 60 pence

• 80 pounds 60 pence

• 78 pounds

What is the final step in calculating the total amount owed with simple interest?

• Divide the total interest by the number of years

• Add the total interest to the principal

• Multiply the interest by the number of years

• Subtract the interest from the principal