INTEREST!
Interest is the money you pay back when you borrow money from the bank.
Its basically a formula of Principal x Rate x Time
Say that the Interest rate was at an annual rate of 8%
If you took out $100 for one year, it would be 1 (time) x 0.08 (rate) x $100 (Principal) which would equal $8 so you would have to pay $108 back to the bank for borrowing money instead of only $100
Now lets say you took out $500 for 8 years, that would make the formula...
8 (time) x 0.08 (rate) x $500 which would equal $320 that you would need to pay back
A way that you can remember the formula is by using letters...
P = Principal
R = Rate
T = Time
I = Interest
A way that I use to remember the letters is PRTI reminds me of party so I just think of an INTERESTing party:D works for me, thought it might help you during your next test.
6 comments:
Very Clear! Good Job!
GOOD JOB! I like the pictures and the color of the text, it is very easy to read. Keep up the good work!!
I think you did an excellent job! I could not have explained that any better, and that part that you added at the end to help us remember what the letters stand for is very intelligent and clever!
Hey! nice job:) love the pictures!
Nice post! I really liked the layout and the hint u gave at the end is very useful! Good Job! =)
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