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 I = PRT, where I is the interest, P is the principal, 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 I = PRT.

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If the principal is $1000, the rate is 6%, and the time is 2 years, what is the interest?

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$120

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How do you convert a decimal to a percent?

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To convert a decimal to a percent, multiply the decimal by 100 and add a percent sign. For example, 0.37 becomes 37%.

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How do you convert a percent to a decimal?

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To convert a percent to a decimal, divide the percent by 100. For example, 4.3% becomes 0.043.

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What is the total amount paid if the principal is $6500, the rate is 8%, and the time is 5 years?

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$9100

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How much interest is earned on a loan of $4000 at a 6% interest rate for 5 years?

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$1200

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

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Principal is the initial amount of money that is borrowed or invested, before any interest is added.

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What does 'Rate' refer to in Simple Interest calculations?

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Rate refers to the percentage of interest charged or earned on the principal amount, typically expressed as an annual rate.

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What does 'Time' represent in the Simple Interest formula?

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Time represents the duration for which the money is borrowed or invested, usually measured in years.