Consumer mathematics deals with money — savings, investments, credit and debt.
Simple interest
$I = \frac{P \times R \times T}{100}$ where $P$ = principal, $R$ = rate (%), $T$ = time (years).
Example: RM1000 saved at 5% for 1 year earns $\dfrac{1000 \times 5 \times 1}{100} = \text{RM}50$ interest.
Remember
- Interest $= \dfrac{P R T}{100}$.
- Borrowing (credit) usually costs interest; saving earns it.