SIMPLE INTEREST | GRADE 6

The video introduces the concept of simple interest and explains that it is the percentage of an amount invested or borrowed. The percentage of interest is referred to as the interest rate.

To calculate simple interest, you multiply the principal (total amount invested or borrowed) by the interest rate and the time in years. An example is given for calculating the interest earned on 5,500 pesos at a 1% interest rate for one year. It emphasizes converting the percentage to a decimal before multiplying.

A second example demonstrates calculating the total amount to pay back for a loan of 3,000 pesos at a 9% interest rate for four years. First, the interest is calculated, and then it is added to the principal to find the total amount to be repaid.

The video concludes by reiterating the steps and concepts covered for calculating simple interest.