Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is a method of calculating the interest charged or earned on a principal amount over a specific period of time, calculated using the formula: Interest = Principal x Rate x Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for Simple Interest is: Interest = Principal x Rate x Time.

Front

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

Back

Interest = $1,000 x 0.05 x 3 = $150.

Front

How do you calculate the total amount to be repaid on a loan with Simple Interest?

Back

Total Amount = Principal + Interest.

Front

If Maria borrowed $3,000 at a simple interest rate of 4% per year for 4 years, how much interest did she pay?

Back

Interest = $3,000 x 0.04 x 4 = $480.

Front

What is the total amount Maria has to repay after 4 years?

Back

Total Amount = $3,000 + $480 = $3,480.

Front

How much interest will Sarah pay back on a $45,000 loan at 6% over 10 years?

Back

Interest = $45,000 x 0.06 x 10 = $27,000.

Front

If Christian opened a savings account with $3,250 at 5.2% simple interest for 6 years, how much interest will he earn?

Back

Interest = $3,250 x 0.052 x 6 = $1,014.

Front

What will be the total amount in Christian's account after 6 years?

Back

Total Amount = $3,250 + $1,014 = $4,264.

Front

How do you determine which loan option is the best deal?

Back

Compare the total amounts to be repaid for each loan option, including interest.