Simple Interest Quan Mod

Front

What is Simple Interest?

Back

Simple Interest is calculated using the formula: I = P * r * t, 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

How do you convert time from months to years for interest calculations?

Back

To convert time from months to years, divide the number of months by 12.

Front

What is the formula for calculating the total amount (A) after earning simple interest?

Back

The formula is A = P + I, where A is the total amount, P is the principal, and I is the interest earned.

Front

If Alina Davis can borrow $1945.53 at an annual rate of 5.60%, how much interest will she owe in 6 months?

Back

Using the formula I = P * r * t, I = 1945.53 * 0.056 * 0.5 = $54.49.

Front

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

Back

The relationship is defined by the formula I = P * r * t, showing that interest is directly proportional to principal, rate, and time.

Front

How long will it take to earn $1,125 in interest on a $2,500 investment at 5% annual interest?

Back

Using the formula t = I / (P * r), t = 1125 / (2500 * 0.05) = 9 years.

Front

What does the variable 'r' represent in the simple interest formula?

Back

In the simple interest formula, 'r' represents the annual interest rate expressed as a decimal.

Front

If Anna invested $2,500 at an annual rate of 5%, how much total money will she have after 9 years?

Back

Total amount A = P + I = 2500 + 1125 = $3625.

Front

What is the formula to solve for the principal amount (P) if you know the interest (I), rate (r), and time (t)?

Back

The formula is P = I / (r * t).

Front

In the equation S = 3F - 24, what does F represent?

Back

F represents the amount Abigail needs to save each month.