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

What does the R in I = PRT mean?

Back

Rate

Front

What does the T in I = PRT mean?

Back

Time (in years) for which the money is borrowed or invested.

Front

If you invest $100 at a rate of 5% for 3 years, how much interest will you earn?

Back

$15

Front

What is the principal in the formula I = PRT?

Back

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

Front

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

Back

Divide the percentage by 100.

Front

If Jenna borrowed $5,000 for 3 years and paid $1,350 in interest, what was her interest rate?

Back

9%.

Front

How much simple interest would be earned on a savings account of $4,500 at 5.5% interest per year after 24 months?

Back

$495.

Front

What is the total amount to be paid back if you borrow $1,000 at a 10% interest rate for 2 years?

Back

$1,200.