Simple & Compound Interest (Mix)

Front

What is Simple Interest?

Back

Simple Interest is calculated using the formula: 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

How do you calculate the total amount after earning simple interest?

Back

Total Amount = Principal + Interest. Use the formula: A = P + (P * r * t).

Front

What is Compound Interest?

Back

Compound Interest is calculated on the initial principal and also on the accumulated interest from previous periods. The formula is A = P (1 + r/n)^(nt), where A is the amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.

Front

What is the difference between Simple Interest and Compound Interest?

Back

Simple Interest is calculated only on the principal amount, while Compound Interest is calculated on the principal plus any interest that has already been added.

Front

If Brent invests $96 at 4.3% simple interest for 6 years, how much interest will he earn?

Back

$24.77

Front

Bill borrowed $153 at 4.2% simple interest for 60 months. How much total will he have to repay?

Back

$185.13

Front

How much interest does Debbie earn from an $82 investment at 1.3% compound interest over 3 years?

Back

$3.24

Front

If you invest $823 at a 3% compound interest rate, how much interest will you earn after 9 years?

Back

$250.83

Front

How do you find the total amount after investing with compound interest?

Back

Total Amount = Principal * (1 + r/n)^(nt).

Front

What is the formula for calculating interest earned on a compound interest investment?

Back

Interest Earned = Total Amount - Principal.