Simple Interest/Commissions

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What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It can be calculated using the formula: Simple Interest = Principal × Rate × Time.

Tags

CCSS.7.RP.A.3

Front

What is the formula for calculating Simple Interest?

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The formula for calculating Simple Interest is: SI = P × R × T, where SI is Simple Interest, P is Principal, R is Rate (as a decimal), and T is Time (in years).

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CCSS.7.RP.A.3

Front

If you invest $1,000 at a 5% interest rate for 2 years, what is the Simple Interest earned?

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Simple Interest = 1000 × 0.05 × 2 = $100.

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CCSS.7.RP.A.3

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What is a Commission?

Back

A commission is a fee paid to an employee or agent for services rendered, typically calculated as a percentage of sales.

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CCSS.6.RP.A.3C

Front

How do you calculate Commission?

Back

Commission can be calculated using the formula: Commission = Sales × Commission Rate.

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CCSS.6.RP.A.3B

Front

If a salesperson sells $2,000 worth of products with a 10% commission rate, how much commission do they earn?

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Commission = 2000 × 0.10 = $200.

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CCSS.6.RP.A.3C

Front

What is the total amount in a savings account after earning Simple Interest?

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Total Amount = Principal + Simple Interest.

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CCSS.7.RP.A.3

Front

If you deposit $1,500 at a 3% interest rate for 4 years, what will be the total amount in your account?

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Simple Interest = 1500 × 0.03 × 4 = $180. Total Amount = 1500 + 180 = $1,680.

Tags

CCSS.7.RP.A.3

Front

What is the Commission Rate?

Back

The Commission Rate is the percentage of sales that is paid as commission to the salesperson.

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CCSS.6.RP.A.3C

Front

How do you find the Commission Rate if you know the commission earned and total sales?

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Commission Rate = (Commission Earned / Total Sales) × 100.