# 1 Press Ctrl-A ©G Dear 2010 – Not to be sold/Free to use Fixed Interest Stage 6 - Year 12 General Mathematic.

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1 Press Ctrl-A ©G Dear 2010 – Not to be sold/Free to use Fixed Interest Stage 6 - Year 12 General Mathematic

2 SI = P r n also known as Simple Interest. Click on the letters for their meaning. S imple I nterest P rincipal Money ` umber of Periods R ate of Interest per period Don’t Delete It is calculated as a percentage of money borrowed. You must repay the principal and the interest.

3 Mary borrowed \$5000 for 4 years at 7% p.a. to buy some sheep. SI = P r n = 5000 x 7 100 x 4 = \$1400 How much does she have to repay? Repay = \$5000 + \$1400 = \$6400

4 A chef need \$20 000 at 9% p.a for 4 years to refurbish his restaurant. He has a 10% deposit. i) How much was the deposit? Deposit = 10 100 x 20 000 = \$2000 ii) What is the balance borrowed? Balance = 20 000- 2 000= \$18 000 iii) How much is the interest? Interest = 18 000 x 9 100 x 4= \$6 480

5 A chef need \$20 000 at 9% p.a for 4 years to refurbish his restaurant. He has a 10% deposit. i) How much does he repay? Repay = 18 000 Borrowed + 6480 Interest = \$24 480 ii) What is the monthly repayment? Monthly Repay = 24 480 Repay ÷ 4 Years ÷ 12 Months = \$510 per month

6 Jane borrowed \$70 000 to open her detective agency. She repaid it at \$933.33 per month for 10 years. What was her flat interest rate? Total Repayments = \$933.33x 12 monthsx 10 years = \$ 112 000 Total Interest = \$112 000- \$70 000= \$42 000 Annual Interest = \$42 000÷ 10= \$4 200 Interest % = 4 200 70 000 x 100%= 6% p.a.

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