Simple Interest

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What is Simple Interest?

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Simple Interest is the interest calculated on the principal amount only, without compounding. It is calculated using the formula: SI = P * r * t, where SI is the simple interest, P is the principal amount, r is the rate of interest per year, and t is the time in years.

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What is the formula for calculating Simple Interest?

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The formula for calculating Simple Interest is: SI = P * r * t, where SI is the simple interest, P is the principal amount, r is the rate of interest per year (in decimal), and t is the time in years.

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How do you convert a percentage to a decimal?

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To convert a percentage to a decimal, divide the percentage by 100. For example, 8% becomes 0.08.

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If the principal is $2,000, the rate is 8%, and the time is 5 years, what is the Simple Interest?

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The Simple Interest is $800. (SI = 2000 * 0.08 * 5 = 800)

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If the principal is $225, the rate is 1.5%, and the time is 2 years, what is the Simple Interest?

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The Simple Interest is $6.75. (SI = 225 * 0.015 * 2 = 6.75)

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If the principal is $500, the rate is 10%, and the time is 8 months, what is the Simple Interest?

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The Simple Interest is $33.50. (SI = 500 * 0.10 * (8/12) = 33.33)

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If the principal is $750, the rate is 18%, and the time is 2 years, what is the Simple Interest?

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The Simple Interest is $270. (SI = 750 * 0.18 * 2 = 270)

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If the principal is $1,500, the rate is 19%, and the time is 15 months, what is the Simple Interest?

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The Simple Interest is $356.25. (SI = 1500 * 0.19 * (15/12) = 356.25)

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What is the time period in years if the time is given in months?

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To convert months to years, divide the number of months by 12. For example, 15 months is 15/12 = 1.25 years.

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What does 'principal' mean in the context of Simple Interest?

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The principal is the initial amount of money that is either invested or borrowed before any interest is added.