Analyze and Solve Percent Problems

Front

What is simple interest?

Back

Simple interest is calculated using the formula: Interest = Principal × Rate × Time. It is the interest earned or paid on the original principal amount only.

Front

How do you calculate the total interest earned on a principal amount over time?

Back

Total Interest = Principal × Rate × Time. For example, if you invest $1,000 at a 5% interest rate for 3 years, the interest earned would be $1,000 × 0.05 × 3 = $150.

Front

What is the formula to find the percentage of a part compared to a whole?

Back

Percentage = (Part / Whole) × 100. For example, if 18 out of 45 students play saxophone, the percentage is (18 / 45) × 100 = 40%.

Front

How do you find a percentage of a number?

Back

To find a percentage of a number, multiply the number by the percentage (in decimal form). For example, to find 160% of 98, calculate 98 × 1.6 = 156.8.

Front

What is the principal in a simple interest problem?

Back

The principal is the initial amount of money that is invested or loaned before interest is applied.

Front

What does the term 'rate' refer to in the context of interest?

Back

The rate is the percentage at which interest is calculated on the principal amount, usually expressed as an annual rate.

Front

What is the time period in a simple interest calculation?

Back

The time period is the duration for which the money is invested or borrowed, typically measured in years.

Front

If a bank offers a 1.1% interest rate, how do you express this as a decimal?

Back

To express a percentage as a decimal, divide by 100. So, 1.1% as a decimal is 0.011.

Front

How do you convert a fraction to a percentage?

Back

To convert a fraction to a percentage, divide the numerator by the denominator and multiply by 100. For example, 18/45 = 0.4, which is 40%.

Front

What is the total interest earned on a $700 investment at 1.8% for 6 years?

Back

Total Interest = Principal × Rate × Time = $700 × 0.018 × 6 = $75.60.