Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It is calculated using the formula I = PRT, where I is the interest, P is the principal, R is the rate of interest, and T is the time in years.

Tags

CCSS.7.RP.A.3

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is I = PRT, where I is the interest, P is the principal amount, R is the rate of interest (in decimal), and T is the time (in years).

Tags

CCSS.8.EE.C.7B

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 7.25% becomes 0.0725.

Front

If the principal is $1000 and the rate is 5% for 3 years, what is the Simple Interest?

Back

I = PRT = 1000 * 0.05 * 3 = $150.

Tags

CCSS.7.RP.A.3

Front

What is the total amount to be paid back if the principal is $1200, the rate is 8%, and the time is 2 years?

Back

Total Amount = Principal + Interest = $1200 + ($1200 * 0.08 * 2) = $1392.

Tags

CCSS.7.RP.A.3

Front

What does 'Principal' mean in Simple Interest?

Back

Principal is the initial amount of money that is borrowed or invested, before any interest is added.

Tags

CCSS.7.RP.A.3

Front

What is the 'Rate' in the context of Simple Interest?

Back

The 'Rate' is the percentage at which interest is calculated on the principal amount, usually expressed as an annual rate.

Tags

CCSS.7.RP.A.3

Front

How many years until Allison is 21 if she is currently 12?

Back

Allison will be 21 in 9 years (21 - 12 = 9).

Tags

CCSS.3.OA.D.8

Front

What is the total amount if $50,000 is invested at 2% interest for 9 years?

Back

Total Amount = Principal + Interest = $50,000 + ($50,000 * 0.02 * 9) = $50,900.

Tags

CCSS.7.RP.A.3

Front

What is the interest earned on $10,000 at a rate of 7% over 20 years?

Back

I = PRT = 10,000 * 0.07 * 20 = $14,000.

Tags

CCSS.7.RP.A.3