Simple Interest 1

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated only on the principal amount, or the original amount of money borrowed or invested.

Front

What is the formula for calculating Simple Interest?

Back

The formula for Simple Interest is I = PRT, 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

If you borrow $10,000 at a 5% interest rate for 3 years, how much interest will you pay?

Back

$1,500.

Front

What does 'Principal' mean in the context of Simple Interest?

Back

Principal is the initial amount of money that is borrowed or invested before interest.

Front

How do you convert a percentage to a decimal for calculations?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 4% becomes 0.04.

Front

If you have $200 at an interest rate of 3% for 4 years, how much interest will you earn?

Back

$24.

Front

What is the total amount after earning Simple Interest?

Back

Total Amount = Principal + Interest.

Front

If you invest $1,000 at a 6% interest rate for 5 years, what will be the total amount?

Back

$1,300.

Front

What is the time period in years if you are currently 12 years old and will be 21 years old?

Back

9 years.

Front

How much interest will you earn on $350 at a 2.5% interest rate over 3 years?

Back

$26.25.