Calculating Simple Interest Concepts

This video tutorial by Mrs. Apia covers lesson 10 from module 4 on simple interest. It explains the formula I = PRT, where I is interest, P is principal, R is the interest rate, and T is time. The tutorial emphasizes the importance of compatible units for interest rate and time, and provides exercises to calculate interest, convert time units, and solve for time in different scenarios.

What is the formula for calculating simple interest?

• I = P/R*T

• I = P*R/T

• I = P + R + T

• I = PRT

Why is it important for the units of interest rate and time to be compatible?

• To avoid using a calculator

• To make the formula easier to remember

• To ensure accurate calculation of interest

• To simplify the principal amount

In Exercise 1, what is the principal amount invested in the savings account?

• $875

• $500

• $375

• $1000

How much interest is earned in Exercise 1 after 10 years?

• $875

• $750

• $500

• $375

In Exercise 2, what is the interest rate per year for the savings bond?

• 7.5%

• 6.5%

• 4.25%

• 3%

How is the time converted in Exercise 2 to make it compatible with the interest rate?

• By adding 12

• By subtracting 12

• By dividing by 12

• By multiplying by 12

In Exercise 3, what is the principal amount invested?

• $1000

• $1500

• $450

• $200

What is the interest rate used in Exercise 3?

• 3%

• 7.5%

• 4.25%

• 6.5%

How many years does it take to earn $200 in interest in Exercise 3?

• 2 years

• 6.8 years

• 5 years

• 7 years

What is the key takeaway regarding the relationship between time, years, and interest?

• They are unrelated

• Interest is always greater than time

• They form a proportional relationship

• Time is always greater than interest