Simple Interest
Class 7–8 Maths: comparing quantities (simple interest)
Save money in a bank and watch it grow. How do the amount, the rate and the years change your interest?
Words to know
- Principal
- The money you put in or borrow.
- Rate
- The percent of the principal earned (or paid) each year.
- Simple interest
- P × R × T ÷ 100.
- Amount
- Principal + interest.
Quick check
Answer 3 questions to check what you learned.
Try at home
Ask an adult what interest rate a savings account gives. If you saved ₹1000 for 3 years at that rate, how much interest would you get?