Simple interest and interest rates
Simple interest and interest rates
The principal is the original amount saved or borrowed. The interest rate determines the reward received by a saver or the cost paid by a borrower.
Step-by-step lessons on OCR GCSE Economics 2.8.5 Effect of interest rate changes. Each one builds up to exam-style questions. Build a solid grasp of supply and demand and cost/revenue calculations before tackling the evaluation-heavy policy topics.