Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It can be calculated using the formula: Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: I = P × r × t, 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).

Front

If Jane puts $875 in a bank with a 4% simple interest rate, how much interest will she earn in 7 years?

Back

$245

Front

Miles is considering two loan options. If Option A has a 10% interest rate for 3 years, what is the total interest he will pay?

Back

Total Interest for Option A = $1,150 × 0.10 × 3 = $345.

Front

What is the total amount paid back for a loan with Simple Interest?

Back

Total Amount = Principal + Interest.

Front

If Colton borrowed $17,240 at an 8.25% interest rate for 5 years, how much total will he have paid?

Back

$24,351.50

Front

How do you find the principal amount if you know the interest earned, rate, and time?

Back

Use the formula: Principal = Interest / (Rate × Time).

Front

What is the difference in interest earned between two banks with different rates?

Back

Calculate the interest for both banks using the formula and subtract the smaller from the larger.

Front

If Jonah earned $150.36 in interest at 1.4% over 12 years, what was the principal amount?

Back

$895

Front

How much more interest will Tom earn at City Bank (4.75%) than at First National (3.9%) with $500 after 12 years?

Back

$51