Simple Interest Flashcard

Front

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.

Front

What is the formula for calculating Simple Interest?

Back

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

Front

If the Principal is $15,836, the interest rate is 8.23%, and the time period is 10 years, what is the simple interest?

Back

$13,033

Front

If the principal amount is $2000, the interest rate is 7%, and the time period is 4 years, what is the simple interest?

Back

$560

Front

A student borrowed $1000 from a bank at an interest rate of 8% per annum. If the student repays the loan after 2 years, what is the total amount to be repaid?

Back

$1160

Front

If the principal amount is $800, the interest rate is 4%, and the time period is 5 years, what is the simple interest?

Back

$160

Front

If the principal amount is $500, the interest rate is 5%, and the time period is 3 years, what is the simple interest?

Back

$75

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 any interest is added.

Front

What does 'Rate' refer to in Simple Interest calculations?

Back

Rate refers to the percentage of interest charged on the principal amount, usually expressed as an annual rate.

Front

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

Back

Time refers to the duration for which the money is borrowed or invested, typically measured in years.