3-6 Simple Interest

Front

What does the I in I = PRT mean?

Back

Interest

Front

What is the formula for calculating simple interest?

Back

I = PRT, where I is interest, P is principal, R is rate, and T is time.

Front

If you invest $1000 at a simple interest rate of 5% for 3 years, how much interest will you earn?

Back

$150

Front

What is the principal in the simple interest formula?

Back

The principal is the initial amount of money invested or borrowed.

Front

How do you convert a percentage to a decimal for calculations?

Back

Divide the percentage by 100.

Front

If you earn $20 in interest on a principal of $200 at a rate of 5%, how long did you invest the money?

Back

2 years

Front

What is the total amount after earning simple interest?

Back

Total Amount = Principal + Interest

Front

How much interest is earned on $575 for 3 months at 2.88% simple interest?

Back

$4.14

Front

What is the simple interest earned on a principal of $10,000 at a rate of 5% over 12 years?

Back

$6,000

Front

If Caiden earned $475 and deposited it at a 3.8% interest rate, how much interest will he earn in 15 years?

Back

$270.75