Simple and Compound Interests

Front

What is the formula for simple interest?

Back

I=Prt

Front

What does the P in I =PRT mean?

Back

Principal

Front

In the formula I=P·R·T, what does r stand for in a loan?

Back

Rate: the interest percentage you will pay on a loan

Front

The simple interest formula is I=Prt. What does the t represent?

Back

Time, in years

Front

Write the decimal as a percent.
0.37

Back

37%

Front

9 months is how many years?

Back

0.75

Front

The rate is given as a percent (%). Before using it in the simple interest formula, you must first convert it to a______.

Back

Decimal

Front

Find the simple interest earned for principal of $2,000 at an 8% rate for 5 years.

Back

$800

Front

Mark took out a loan for $25,690 to purchase a new truck at a simple interest rate of 5.2%. How much interest will he pay on his truck after 5 years?

Back

$6,679.40

Front

The principle is ___________________.

Back

the amount of money borrowed or deposited