12/5 Do Now

Front

What is the formula for calculating simple interest?

Back

I = P x R x T, where I is the interest, P is the principal amount, R is the rate of interest (in decimal), and T is the time in years.

Front

If you have a principal of $2,000, a rate of 8%, and a time of 5 years, how much simple interest will you earn?

Back

$800

Front

Before using the rate in the simple interest formula, how must it be converted?

Back

To a decimal.

Front

What does 'P' represent in the simple interest formula?

Back

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

Front

What does 'R' represent in the simple interest formula?

Back

R represents the rate of interest, expressed as a decimal.

Front

What does 'T' represent in the simple interest formula?

Back

T represents the time the money is invested or borrowed for, measured in years.

Front

Convert 8% to a decimal for use in the simple interest formula.

Back

0.08

Front

If you earn $800 in simple interest over 5 years, what was your principal amount if the rate was 8%?

Back

$2,000

Front

What is the relationship between principal, rate, time, and interest in the context of simple interest?

Back

The interest earned is directly proportional to the principal amount, the rate of interest, and the time period.

Front

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

Back

Total Amount = Principal + Interest.