COURSE OVERVIEW:
Interest is the cost of using somebody else’s money and works in two ways. When you borrow money, you pay interest. When you lend money, you earn interest.
Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments. When you make a payment on a simple interest loan, the payment first goes toward that month’s interest, and the remainder goes toward the principal. Each month’s interest is paid in full so it never accrues.
Simple interest, also known as nominal interest, is interest that can only be earned on the money you have deposited into an account (principal), not on the money you’re earning (interest). Alternatively, when you’ve borrowed money, you always repay the interest first, and then the required principal.
Simple interest is interest calculated on the principal portion of a loan or the original contribution to a savings account. Simple interest does not compound, meaning that an account holder will only gain interest on the principal, and a borrower will never have to pay interest on interest already accrued.
Investigating the impact of interest rates on savings and borrowing. Simple interest is calculated annually using the interest rate. Simple interest is always calculated using the original amount.
This course is designed to provide a sound introduction to the uses of mathematics in simple interest topics, principles, formulas and how they work. It has dual objectives of teaching both mathematics and financial literacy.
The first part of this course discusses the concept of the time value of money, and recognises the reasoning behind the payment of interest. Then shows you how to calculate the amount of simple interest for a given loan. Also, explains how to use the simple interest formula together with basic algebra techniques to find the principal, simple interest rate, or term, given the other details of a loan.
The second part shows you how to determine the number of days between any two calendar dates. Then explains how to apply these skills and concepts to real-world financial situations such as promissory notes.
LEARNING OUTCOMES:
By the end of this course, you will be able to understand:
- The concept of interest
- Simple interest and the time value of money - How to use this principle within real business situations?
- The simple interest as a per cents
- How to work with per cents? - How to use this principle within real business situations?
- How to deal with mixed number and fractional per cents when calculating simple interest?
- The impact of time on simple interest - How to use this principle within real business situations?
- The simple interest formula - How to use this formula within real business situations?
- What is meant by loans in disguise?
- How to calculate simple interest for a loan? - How to use this principle within real business situations?
- How to calculate loans with terms in months? - How to use this principle within real business situations?
- The exact method to calculate simple interest - How to use this principle within real business situations?
- How to calculate simple interest using the bankers’ rule? - How to use this principle within real business situations?
- How to calculate loans with terms in weeks? - How to use this principle within real business situations?
- How to find principal? - How to use this principle within real business situations?
- How to use the balance principle?
- How to find the simple interest rate? - How to use this principle within real business situations?
- How to find time? - How to use this principle within real business situations?
- The promissory notes
- How to find a note’s term from its dates? - How to use this principle within real business situations?
- How to calculate simple interest in leap years? - How to use this principle within real business situations?
- How to find loan dates and maturity dates? - How to use this principle within real business situations?
- How to find terms across multiple years? - How to use this principle within real business situations?
- How to find dates across multiple years? - How to use this principle within real business situations?
- How to use non-annual interest rates? - How to use this principle within real business situations?
- How to convert from a non-annual to an annual simple interest rate?
- How to convert from an annual to a non-annual simple interest rate? - How to use this principle within real business situations?
- How to convert between other units of time?
COURSE DURATION:
The typical duration of this course is approximately 3-4 hours to complete. Your enrolment is Valid for 12 Months. Start anytime and study at your own pace.
COURSE REQUIREMENTS:
You must have access to a computer or any mobile device with Adobe Acrobat Reader (free PDF Viewer) installed, to complete this course.
COURSE DELIVERY:
Purchase and download course content.
ASSESSMENT:
A simple 10-question true or false quiz with Unlimited Submission Attempts.
CERTIFICATION:
Upon course completion, you will receive a customised digital “Certificate of Completion”.