Mastering Simple Interest: Solving Word Problems with Formulas

The Organic Chemistry Tutor

This educational video provides a clear, step-by-step tutorial on how to solve word problems involving simple interest using the formula I = Prt. The instructor walks through four distinct examples, starting with a basic application of calculating interest earned and total account value. The video progresses in difficulty, demonstrating how to manipulate the formula to solve for other variables, such as the time period (t) and the interest rate (r), and how to handle problems where the total future value is given rather than just the interest amount. The key themes explored include algebraic manipulation of formulas, percentage-to-decimal conversion, and financial literacy concepts related to savings and investments. The video emphasizes the importance of identifying known variables (Principal, Rate, Time, Interest) from a text-based problem and substituting them correctly into the equation. For educators, this resource serves as an excellent modeling tool for Algebra 1 or Financial Math classes. It effectively bridges the gap between algebraic skills and real-world financial applications. The clear handwriting on a blackboard style background makes it easy for students to follow along with the calculations. Teachers can use this video to introduce the concept of simple interest or as a review station for students practicing variable isolation in formulas.