Simple Interest

Front

What does the 'p' stand for in the simple interest formula?

Back

p stands for principal, which is the amount of money you borrow.

Front

How do you calculate simple interest?

Back

Simple interest is calculated using the formula I = Prt, where I is interest, P is principal, r is rate (as a decimal), and t is time (in years).

Front

What is the formula for calculating simple interest?

Back

The formula for calculating simple interest is I = Prt.

Front

If you borrow $1,000 at an interest rate of 5% for 3 years, how much interest will you pay?

Back

You will pay $150 in interest.

Front

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

Back

r represents the interest rate.

Front

What does the 't' in the simple interest formula represent?

Back

t represents the time in years.

Front

If you invest $200 at a 10% interest rate for 2 years, how much interest will you earn?

Back

You will earn $40 in interest.

Front

What is the principal if you earn $60 in interest at a rate of 5% over 2 years?

Back

The principal is $600.

Front

If the interest earned is $30, the principal is $300, and the time is 2 years, what is the interest rate?

Back

The interest rate is 5%.

Front

What is the total amount to be paid back if you borrow $500 at a 6% interest rate for 4 years?

Back

The total amount to be paid back is $620.