Section 1

Lesson 1 Summary

 

In this lesson you examined simple interest on loans and investments. To solve simple interest problems, you discovered that you had to know three of the four quantities: interest, annual interest rate, principal, and the term in years.

 

Interest on loans and investments has been part of human civilization for thousands of years. In ancient Babylon, regulations governed the interest lenders could legally charge. The same is true today in Canada. All charges and interest must be disclosed to the borrower, so that the borrower knows from the beginning how much interest the loan will cost. Remember to read the fine print before signing on the dotted line! And keep in mind that only legitimate borrowing is dealt with in this lesson.