Simple Interest

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 I = Prt, where I is the interest, P is the principal, r is the rate (as a decimal), and t is the time in years.

Front

How do you calculate Simple Interest?

Back

Simple Interest (I) is calculated using the formula: I = Prt, where P is the principal amount, r is the annual interest rate (in decimal), and t is the time in years.

Front

Convert 5% to a decimal.

Back

0.05

Front

If the principal is $2000 and the interest rate is 3% for 4 years, how much interest is earned?

Back

$240

Front

What does the variable 'r' represent in the formula I = Prt?

Back

'r' represents the annual interest rate, which must be expressed as a decimal when using the formula.

Front

If Maria borrowed $3,000 at a simple interest rate of 4% per year, how much interest will she earn in 4 years?

Back

$480

Front

What is the total amount to be repaid if the principal is $3,000 and the interest earned is $480?

Back

$3,480

Front

What is the time period if the principal is $1500, the interest is $270, and the rate is 12%?

Back

1.5 years

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100.

Front

What is the principal if the interest earned is $100, the rate is 5%, and the time is 2 years?

Back

$1,000