Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the amount of money earned or paid on a principal amount over a specific period of time, calculated using the formula I = Prt.

Front

What does the 'P' in the formula I = Prt represent?

Back

The 'P' represents the principal amount, which is the initial sum of money borrowed or invested.

Front

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

Back

The 'r' represents the rate of interest, expressed as a decimal.

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What does the 't' in the formula I = Prt represent?

Back

The 't' represents the time the money is borrowed or invested, usually in years.

Front

How do you convert months into years for calculating simple interest?

Back

To convert months into years, divide the number of months by 12.

Front

If you borrow $1000 at a 5% interest rate for 3 years, what is the simple interest?

Back

The simple interest is $150.

Front

What is the total amount to be paid back if the principal is $1200 and the interest is $192?

Back

The total amount to be paid back is $1392.

Front

If Mrs. Kenny wants to buy a statue for $6500 with an 8% interest rate for 5 years, what will be the total cost?

Back

The total cost will be $9100.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is I = Prt.

Front

What is the principal amount in a loan?

Back

The principal amount is the original sum of money borrowed or invested.