Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is a method of calculating the interest charge on a loan or financial investment. It is calculated using the formula: Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

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

Front

If Jane puts $875 in a bank with a 4% simple interest rate, how much interest will she earn in 7 years?

Back

$245

Front

Ethan borrowed $2,190 at a simple interest rate of 2.5%. How much interest will he pay back in 3 years?

Back

$164.25

Front

Colton borrowed $17,240 at an 8.25% simple interest rate. What will be the total amount he pays back after 5 years?

Back

$24,351.50

Front

Stefan borrowed $8,950 for an engagement ring at a 6.85% simple interest rate. How much will he pay back after 6 years?

Back

$12,628.45

Front

Veronica took a loan of $5,500 at a simple interest rate of 3.25% for 48 months. What is the total amount she will pay?

Back

$6,215.00

Front

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

Back

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

Front

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

Back

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

Front

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

Back

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