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: Simple Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: SI = P × R × T, where SI is Simple Interest, P is the principal amount, R is the rate of interest per year, and T is the time in years.

Front

If Anna invests $2,500 at an annual rate of 5%, how much interest will she earn in 9 years?

Back

Anna will earn $1,125 in interest.

Front

How do you calculate the time required to earn a certain amount of interest?

Back

To calculate the time required to earn a certain amount of interest, rearrange the Simple Interest formula: T = SI / (P × R).

Front

What is the principal amount if Lisa earned $20 in interest at a 5% interest rate for 1 year?

Back

Lisa deposited $400.

Front

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

Back

Use the formula: R = SI / (P × T).

Front

What is the interest earned on a loan of $1,500 at a rate of 19% for 15 months?

Back

The interest earned is $356.25.

Front

If Danny earned $100 in interest on $800 over 5 years, what was the interest rate?

Back

The interest rate was 2.5%.

Front

What is the time period in years if the principal is $2,500, the rate is 5%, and the interest earned is $1,125?

Back

The time period is 9 years.

Front

How do you convert months into years for interest calculations?

Back

To convert months into years, divide the number of months by 12.