Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is a method of calculating the interest charged or earned on a principal amount over a specific period of time, typically expressed as a percentage.

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, and t is the time in years.

Front

If Abby earned $600 and wants to double her money at a 5% interest rate, how long will it take?

Back

It will take 20 years to double her money.

Front

How do you calculate the total amount paid back on a loan with Simple Interest?

Back

Total Amount = Principal + Interest, where Interest is calculated using the formula I = P * r * t.

Front

Stefan borrowed $8,950 at a 6.85% interest rate for 6 years. How much total will he pay back?

Back

He will pay back $12,628.45.

Front

What is the principal amount in a Simple Interest calculation?

Back

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

Front

Colton borrowed $17,240 at an 8.25% interest rate for 5 years. What is the total amount he will pay?

Back

He will pay a total of $24,351.50.

Front

What does the interest rate represent in Simple Interest?

Back

The interest rate represents the percentage of the principal that is charged as interest over a specific period of time.

Front

If Scott paid $8,925 in interest on a $35,000 loan, what was the interest rate?

Back

The interest rate was 4.25%.

Front

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

Back

He will pay $164.25 in interest.