Simple interest

Front

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

Back

Interest ($)

Front

What is the formula for simple interest?

Back

I = P*r*t

Front

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

Back

$150

Front

What does P represent in the simple interest formula?

Back

Principal amount (the initial amount of money)

Front

What does r represent in the simple interest formula?

Back

Rate of interest (as a decimal) per time period

Front

What does t represent in the simple interest formula?

Back

Time (in years) the money is invested or borrowed

Front

If you earn $200 in interest on a principal of $1000 over 4 years, what is the interest rate?

Back

5%

Front

How much interest will you earn on $500 at a rate of 6% for 2 years?

Back

$60

Front

If you borrow $3000 at an interest rate of 10% for 1 year, how much interest do you owe?

Back

$300

Front

What is the total amount to be paid back if you borrow $2000 at 4% interest for 5 years?

Back

$2400