Episode 13 — Finance Growth and Decay

Simple Interest Question 2

Learners will be able to:

• Calculate the principal amount 'p' in a simple interest problem. • Apply the formula A = P (1 + i × n) to solve for 'P'. • Identify the correct formula to use when dealing with simple interest. • Solve for 'P' by dividing both sides of the equation by (1 + i × n). • Interpret the meaning of the principal amount 'p' in the context of a savings account.