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
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