This document discusses interest in business and provides formulas for calculating simple interest. It defines interest as the charge for borrowing money, explains the key terms in calculating interest including principal, interest rate, time, and introduces the formulas: I=Pxrxt S= P+I S= P+Prt S = P ( 1+ r t ) The document explains how to use these formulas to calculate simple interest and simple amount based on the given conditions and provides an example calculation as an exercise.

1. Miss Nurul Aidha
Mathematics Lecturer

2. What do you know about INTEREST
in business?
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3. charge of borrowing money
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4. 1 Year
12 months
52 weeks
360 days
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5. Amount of money
Principal borrowed
Percentage charged
INTEREST Rate by lender
Borrowing period
Time
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6. I=Pxrxt
Where P = principal
r = interest rate
t = time in year
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7. Sum of principal and interest
S= P+I
Where S = simple amount
P = Principal
I = Simple Interest
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8. But most of the time…we deduce the simple
amount formula
S= P+I
S= P+Prt
S = P ( 1+ r t )
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9. So we can choose either formulae but must based
on the conditions given
S= P+I or S = P ( 1+ r t )
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10. It’s time to do an exercise.
GOOD LUCK
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