Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It is calculated using the formula I = P * R * T.

Front

What does the variable 'P' represent in the formula I = P * R * T?

Back

'P' represents the Principal amount, which is the initial sum of money borrowed or invested.

Front

What does the variable 'R' represent in the formula I = P * R * T?

Back

'R' represents the Rate of interest, expressed as a decimal.

Front

What does the variable 'T' represent in the formula I = P * R * T?

Back

'T' represents the Time the money is borrowed or invested, usually expressed in years.

Front

Calculate the simple interest for a principal of $6,000 at an interest rate of 5% for 6 months.

Back

$150

Front

Convert the decimal 0.37 to a percent.

Back

37%.

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Calculate the simple interest for $250 at 6.5% for 3 years.

Back

$48.75.

Front

Calculate the simple interest for $725 at 4.5% for 4 years.

Back

$130.50.

Front

In the formula I = P * R * T, what does 'R' stand for?

Back

Rate: the interest percentage you will pay on a loan.

Front

What is the formula to calculate Simple Interest?

Back

I = P * R * T.