Rate — the percentage
Explore why interest = P×R×T.
In this lesson
Rate — the percentage is part of Simple Interest Math. This preview shows how interest-growth connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Think about this money choice
Imagine this situation: Two savings accounts: Account A at 6%, Account B at 9%. You save 40000 in local currency for 1 year.
How it works
Interest = P×R×T. Rate and interest are directly proportional — double the rate, double the interest (with same principal and time). Comparing rates before saving or borrowing is always worthwhile.
Apply it to a real decision
Real-life money moment: You borrow 50000 in local currency at 24% APR for 1 year. A bank offers the same loan at 18% APR.
Activity preview
Connect the ideas
Use the lesson to complete this short practice activity.
Practice adding money to savings
Open Requests and make a deposit request into savings so you can see how saving starts. Parent approval can happen later.
Quiz preview
If a rate is 6% per year and you save for 1 year:
Two savings accounts: Account A at 6%, Account B at 9%. You save 40000 in local currency for 1 year. How much more does Account B earn?