Quick Reference ~ A maths Dictionary for Kids by Jenny Eather Email jeather@iprimus.com.au A Maths Dictionary for Kids by Jenny Eather at www.amathsdictionaryforkids.com


Ii

interest

• interest is a fee paid for borrowing money or other assets.
• the amount borrowed is called the principal.
•  the interest is expressed as a percentage rate of the principal
for a given time interval.
• two common types of interest are simple interest
and compound interest

simple interest formula
I = P x R x T
I = Interest, P = Principle, R = Rate, T = Time

EXAMPLE:
interest, interest rate
compound interest
compound interest


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