Page 114 - Demo

Review Numbers & Money Exchange│ Unit1114C) Simple Interest -Years & MonthsIn some cases, the borrowing/ investment period is in years and months. The Simple Interest formula will have to be adjusted by converting year to months as in Example 4-3-4:1.Calculate the simpleamount interest on BHD900 at an annual simple interest rate 6¾% for one year and two months.2.Nawal wants to borrow BHD4,000. If she was charged simple interest rate of 7% annually and the loan duration is three years and 8 months, how much will she repay?3.An investment of BHD5,000 with simple interest rate of 9% annually. How much is it worth at the end of 4 years and 9 months?Exercises4-3-4:►BHD7,500is deposited at simple interest rate 12% per year. Find the balance after 2 years and 5 months.Solution:S.I = P ×R ×T= 7,500 ×12% ×09 ÷ 80= BHD2,175A = P + S.I= 7,500 + 2,175= BHD 9,675Example 4-3-4:2 years × 12 = 24 months+ 5 months29 monthsSimple Interest│ Unit 4