Sign-up today to join over 5 million learners already on ALISON:

Introduction to Simple and Compound Interest


Introduction to Simple and Compound Interest
Introduction to Simple and Compound Interest

Learn more about simple and compound interest and how they are calculated.


Join 1,351 other students.
4 17

Course Description

Any person with a bank account, credit card or bank loan will come across aspects of simple interest and compound interest. However, many people have difficulty in distinguishing between the two types of interest and how they should be calculated. In this free online course you will learn why simple interest is called simple interest, how simple interest is used in daily life and how it is calculated. Compound interest, as the name implies, is a little more complicated but this course explains the concept clearly and covers the methods used for calculating compound interest. This course will be of great interest to all learners who are intimidated by financial concepts such as simple interest and compound interest, and would like to study a course that explains these concepts in a step-by-step and easy to follow manner.

Certification

To qualify for your official ALISON Diploma, Certificate or PDF you must study and complete all modules and score 80% or more in each of the course assessments. A link to your Diploma certificate will then appear under the My Certificates heading of your My Account page.

Learning Outcomes

Learning outcomes: - Understanding Simple and Compound Interest; - Examine how to calculate using Simple and Compound formulas; - Learn the key differences of each and when they are used; - Overall general concept of how Interest is calculated on loans.


Manage a Group of Learners

Share This Course!

 
Module Title
Module 1: Introduction to Simple and Compound Interest
Module 2: Introduction to Simple and Compound Interest Assessment

Study for Free at Your Own Pace! Start This Course

Course Rating (By Learners): 4 stars based on 17 reviews
Course Title: Introduction to Simple and Compound Interest
Course #: 457
Course Publisher: Khan Academy
Course Category: 2
Content Origin:
Course Description: Any person with a bank account, credit card or bank loan will come across aspects of simple interest and compound interest. However, many people have difficulty in distinguishing between the two types of interest and how they should be calculated. In this free online course you will learn why simple interest is called simple interest, how simple interest is used in daily life and how it is calculated. Compound interest, as the name implies, is a little more complicated but this course explains the concept clearly and covers the methods used for calculating compound interest. This course will be of great interest to all learners who are intimidated by financial concepts such as simple interest and compound interest, and would like to study a course that explains these concepts in a step-by-step and easy to follow manner.
License: This course is available from Khan Academy OpenCourseWare through the following Creative Commons licence:
Creative Commons License
Release Date: 10 August 2012
Content  
Course Duration (Avg Learner): 1-2 Hours
Video/Audio: High
Audio Only: High
Animation: None
Assessments: Yes
Education Level
Age appropriateness: 16+ Years
Minimum Grade/Class Level: Post-Secondary
Validation: Level 5
ALISON Testing: Yes
Certification Availability
PDF Download: Yes
Parchment: Yes
Framed Certification: Yes

Study for Free at Your Own Pace! Start This Course

  • Eric Kwame Osei
    Eric Kwame Osei United States of America Great lesson. 2015-05-31 01:05:53
  • Gary Short
    Gary Short United States of America Very informative. 2014-10-12 05:10:12
  • Dhanshree Kanhe
    Dhanshree Kanhe United States of America thank you 2014-07-14 20:07:22
  • Dhanshree Kanhe
    Dhanshree Kanhe United States of America This session is very excellent .......and its clear all my concept about simple and compound interest 2014-07-14 20:07:22
  • Joratio Jose Nuyda
    Joratio Jose Nuyda Philippines Good. 2014-05-12 07:05:12
  • Khan Sovannareth
    Khan Sovannareth Cambodia Course Module: Module 1: Introduction to Simple and Compound Interest
    Course Topic: Interest Part 2
    Comment: .Simple interest: FV = P+Pr = P(1+r) .P: Principle amount .r: Interest rate .I = FV-P or I = Pr Compound Interest FV = P(1+r)n P : Principle Amount r : Interest Rate n : number of period of investment 2012-10-01 10:10:40
More Comments and Reviews >>

Study for Free at Your Own Pace! Start This Course

Free, Online Introduction to Simple and Compound Interest Course.