Simple interest

Front

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

Back

Interest ($)

Front

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

Back

Time

Front

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

Back

Principal

Front

What is the formula for calculating simple interest?

Back

Simple Interest (SI) = Principal (P) × Rate (R) × Time (T) / 100

Front

If you deposit $1000 at an interest rate of 5% for 3 years, how much interest will you earn?

Back

$150

Front

What is the principal amount in a simple interest calculation?

Back

The initial amount of money deposited or borrowed.

Front

How does the interest rate affect the amount of simple interest earned?

Back

A higher interest rate increases the amount of interest earned.

Front

If you earn $200 in interest on a principal of $2000 over 4 years, what is the interest rate?

Back

2.5% per year

Front

What happens to the simple interest if the time period is doubled?

Back

The simple interest will also double.

Front

If you borrow $5000 at an interest rate of 6% for 5 years, how much total will you pay back?

Back

$6000 (Principal + $300 Interest)