Interest and Interest Rate Calculation

🎬 Video Tutorial

  • Understanding Principal and Interest: The principal is the initial amount of money invested, while interest is the extra amount earned based on a set interest rate, typically yearly.
  • Calculating Simple Interest: Interest is calculated by multiplying the principal by the interest rate. For example, £100 at 5% interest results in £5 interest after 1 year.
  • Determining Principal from Interest Earned: To find the initial investment when interest and rate are known, divide the interest by the rate (e.g., £30 at 5% interest implies an initial principal of £600).

Membership Required

You must be a member of Math Angel Plus or Math Angel Unlimited to watch this video.

Join Now

Already a member? Log in here

📂 Revision Cards

💬 ChatCat (AI Math Tutor)