Simple Interest Practice

Front

What is Simple Interest?

Back

Simple Interest is a method of calculating the interest charge on a loan or financial product. It is calculated using the formula: Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: Interest = Principal × Rate × Time.

Front

If Mark took out a loan of $25,690 at a simple interest rate of 5.2% for 5 years, how much interest will he pay?

Back

$6,679.40

Front

Riley invested $1,000 at a simple interest rate of 6.75% for 15 years. What will be the total balance in her account?

Back

$2,012.50

Front

How much interest did Claire earn on her $1,800 deposit at 2.5% simple interest over 12 years?

Back

$540

Front

If Kennedy won $3,000 and invested it at 2.9% simple interest for 10 years, what will be her total amount?

Back

$3,870

Front

What is the total amount Rob will have after earning simple interest on $5,000 at 4.25% for 6 months?

Back

$5,106.25

Front

How do you convert a percentage to a decimal for calculations?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 5% becomes 0.05.

Front

What does 'Principal' mean in the context of Simple Interest?

Back

Principal is the initial amount of money that is either invested or borrowed before interest.

Front

What does 'Rate' refer to in the Simple Interest formula?

Back

Rate refers to the percentage of interest charged or earned on the principal, usually expressed as an annual rate.