Simple Interest Explained: Formula and Tips for Beginners

When you lend money to someone, deposit it in a bank, or invest it, you can earn interest based on the rate of interest and the time your money is invested. The most basic type of interest is simple interest, where the principal amount remains unchanged—meaning the interest earned does not become part of the principal.

In this video, I break down the concept of simple interest in an easy-to-understand way, perfect for beginners. The video also includes several examples to show how to apply the simple interest formula to real-life problems. Watch the entire video to fully grasp the concept, and feel free to share any questions or point out errors in the comments.

Also, there is a quiz based on the concept of simple interest, and its link is given below. Solve those questions to see how much you understood.

Links to the related quiz are here:

  1. Quiz 1

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