**what does p.a stand for? **per annum

**what does annum mean? **year

**what is simple interest?**

when the interest in pounds is the same amount each year and the percentage was worked out by the original amount in the bank.

**how to figure out simple interest:**

1.) figure out how much you would have at the end of the year (by doing simple percentage sums)

EXAMPLE: if the interest was 8% then figure out 8% of the original amount in the bank and add this to the amount in the bank originally.

2.) multiply this by the number of years

## Comments

No comments have yet been made