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Miss Nurul Aidha
Mathematics Lecturer
What do you know about INTEREST
in business?




        MAT 1013                  2
charge of borrowing money




     MAT 1013               3
1 Year

      12 months

       52 weeks

       360 days




MAT 1013            4
Amount of money
                      Principal       borrowed

                                  Percentage charged
INTEREST                Rate           by lender


                                   Borrowing period
                       Time


           MAT 1013                                    5
I=Pxrxt

Where P = principal
       r = interest rate
      t = time in year




 MAT 1013                  6
Sum of principal and interest

           S= P+I
Where         S = simple amount
              P = Principal
              I = Simple Interest




        MAT 1013                    7
But most of the time…we deduce the simple
              amount formula

                 S= P+I
                 S= P+Prt
                 S = P ( 1+ r t )




            MAT 1013                        8
So we can choose either formulae but must based
            on the conditions given



S= P+I                   or   S = P ( 1+ r t )




              MAT 1013                            9
It’s time to do an exercise.

       GOOD LUCK




     MAT 1013                  10

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