Interest & hire purchase

<p><strong>Simple interest</strong> is the interest calculated on the principal amount over a period of time.</p>
<p>In general,</p>
<p style="text-align: center">\(I = \frac{PRT}{100}\)</p>
<p>where:<br>\(I\) = Simple Interest<br>\(P\) = Principal (initial amount)<br>\(R\) = Annual interest rate (\(\%\))<br>\(T\) = Time in years, because the stated rate is annual</p>
<p><strong>Key Points:</strong></p>
<ul class="bullet-list"><li data-list-item-id="item-1" data-list-item-path="item-1"><div class="list-item-paragraph">The interest is constant for each period (year).</div></li><li data-list-item-id="item-2" data-list-item-path="item-2"><div class="list-item-paragraph">Total Amount \(= P + I\)</div></li></ul>

**Simple interest** is the interest calculated on the principal amount over a period of time.

where:
\(I\) = Simple Interest
\(P\) = Principal (initial amount)
\(R\) = Annual interest rate (\(\%\))
\(T\) = Time in years, because the stated rate is annual

Simple Interest

Simple Interest

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