SubjectPaid lesson
ARITHMETIC of FINANCE
CT
ClassNotes Team 5 MIN READUPDATED 13 JUL 2026Mathematics SSS 3 First Term
WEEK 3
ARITHMETIC of FINANCE
Performance Objectives
Student should be able to:
- Calculate simple and compound interest.
- Define and compute depreciation.
- Define and compute annuity.
Content
Simple interest and Compound interest
Interest is paid on either money paid or borrowed. The principal is the initial amount of money deposited or borrowed.
When an interest is calculated and added to the principal at the end of an agreed time interval e.g. 3 months, 6 months, 1 year etc. Is called simple interest (
or 
). This is given by the formula
Where 
principal, 
rate and 
time
The amount 
at the end of the investment period is
When an interest is calculated and added to the principal…