Simple interest

Front

What does the t stand for in the simple interest equation?

Back

Time

Front

Howard borrowed $4,000 from the bank at an interest rate of 8%. He has to pay it back in 2 years. How much interest will he pay?

Back

$640

Front

What does the r stand for in the simple interest equation?

Back

Rate (% as decimal)

Front

Amy deposits $200 in the bank for 5 years. She earns 5% interest. How much did she make in interest?

Back

$50

Front

What is the formula for simple interest?

Back

I = P*r*t

Front

If you invest $1,000 at a 6% interest rate for 3 years, how much interest will you earn?

Back

$180

Front

What is the principal in a simple interest loan?

Back

The initial amount of money borrowed or invested.

Front

How do you convert a percentage to a decimal for the simple interest formula?

Back

Divide the percentage by 100.

Front

If the interest earned is $120 and the principal is $800, what is the rate if the time is 2 years?

Back

7.5%.

Front

What is the total amount to be paid back if the principal is $500 and the interest is $75?

Back

$575.