My Ssec Capstone Project The simple interest is given by Is = P rt The maturity value is given by F = P + Is where Is = simple interest F = maturity or future value P = principal r = rate of interest t = time or term EXAMPLE 1

# The simple interest is given by Is = P rt The maturity value is given by F = P + Is where Is = simple interest F = maturity or future value P = principal r = rate of interest t = time or term EXAMPLE 1

The simple interest is given by
Is = P rt
The maturity value is given by
F = P + Is
where
Is = simple interest
F = maturity or future value
P = principal
r = rate of interest
t = time or term
EXAMPLE 1. H&G Company offers 15% annual simple interest rate for a
particular deposit. If John deposited 1 hundred thousand pesos, (a)how much
will be the interest earned in his savings account for 1 year? (b) How much
will be the total amount on his account?
Given:
P = 100, 000
r = 15% = 0.15
t = 1 year
Is = P rt
= (100000)(0.15)(1)
= 15000
F = P + Is
= 100000 + 15000
= 115000
EXAMPLE 2. How much interest is charged when P35,000 is borrowed for
9 months at an annual simple interest rate of 10%? Find the maturity value.
Given:
P = 35, 000
r = 10% = 0.1
t =
9
12 = 0.75 year
Is = P rt
= (35000)(0.1)(0.75)
= 2625
F = P + Is
= 35000 + 2625
= 37625
EXAMPLE 3. At an annual interest of 8% an amount earned P35,500 of
simple interest in 5 years. Find the principal money invested.
Given:
r = 8% = 0.08
t = 5years
Is = 35500
P =
Is
rt
=
35500
(0.08)(5)
= 87500