Simple Interest

Front

What is the formula for calculating simple interest?

Back

I = PRT, where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time in years.

Front

If you borrow $43,800 at a simple interest rate of 4.8% for 2 years, how much interest will you pay back?

Back

$4,204.80

Front

What does the 'P' in the simple interest formula I = PRT represent?

Back

The principal amount, which is the initial sum of money borrowed or invested.

Front

How much interest will Ann earn in 1 year if she deposits $300 at a 4% interest rate?

Back

$12.

Front

What does the 't' in the simple interest formula I = PRT represent?

Back

Time, measured in years.

Front

If Emilio borrows $1200 at an 8% simple interest rate for 2 years, what is the total amount he will have to pay back?

Back

$1,392.

Front

How do you calculate the total amount to be paid back on a loan using simple interest?

Back

Total Amount = Principal + Interest.

Front

What is the interest earned on a principal of $1000 at a rate of 6% over 2 years?

Back

$120.

Front

If the principal is $500 and the interest rate is 5% for 3 years, what is the interest earned?

Back

$75.

Front

What is the effect of increasing the interest rate on the total interest earned?

Back

Increasing the interest rate will increase the total interest earned.