Simple Interest/Commissions

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It is calculated using the formula: Simple Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: SI = P × R × T, where SI is Simple Interest, P is Principal, R is Rate (in decimal), and T is Time (in years).

Front

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

Back

$33.50

Front

How do you convert months into years for interest calculations?

Back

To convert months into years, divide the number of months by 12. For example, 8 months = 8/12 = 2/3 years.

Front

What is the total amount after earning Simple Interest?

Back

Total Amount = Principal + Simple Interest.

Front

If Javon has a credit card balance of $1,583 and an interest rate of 8.8%, how much interest does he owe after 3 years?

Back

$417.91

Front

What is the principal amount in the following scenario: Jerry borrowed $4,000 for 5 years at 6% simple interest?

Back

$4,000.

Front

How do you calculate the total amount in a savings account after earning Simple Interest?

Back

Total Amount = Principal + (Principal × Rate × Time).

Front

If a bank offers 2.5% simple interest on a $5,000 deposit for 3 years, what is the total amount in the account?

Back

$5,375.

Front

What is the interest earned on a principal of $800 at a rate of 3.5% for 6 months?

Back

$14.