Simple interest

Front

What does the P stand for in the simple interest equation?

Back

Principal

Front

What does the r stand for in the simple interest equation?

Back

Rate (% as decimal)

Front

What is the formula for calculating simple interest?

Back

Simple Interest (SI) = P * r * t, where P is principal, r is rate, and t is time.

Front

If you invest $1000 at a 5% interest rate for 3 years, how much interest will you earn?

Back

$150

Front

What is the time period in the simple interest formula?

Back

The duration for which the money is invested or borrowed, usually expressed in years.

Front

How do you convert a percentage to a decimal for the simple interest formula?

Back

Divide the percentage by 100.

Front

If you earned $200 in interest on a principal of $1000 over 4 years, what was the interest rate?

Back

5%.

Front

What is the relationship between principal, rate, and time in simple interest?

Back

Interest earned is directly proportional to the principal amount, the rate of interest, and the time period.

Front

How can you find the principal if you know the interest earned, rate, and time?

Back

P = SI / (r * t), where SI is the simple interest.

Front

What happens to the interest earned if the time period is doubled, keeping principal and rate constant?

Back

The interest earned will also double.