12/11/24 Pract. 3-6 Simple Interest

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: Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: Interest = Principal × Rate × Time.

Front

If Jerry borrowed $4,000 for 5 years at 6% simple interest, how much interest will he pay?

Back

$1,200

Front

Emilio borrows $1,200 at 8% simple interest for 2 years. How much will he pay back in total?

Back

$1,392

Front

What is the Principal in a simple interest calculation?

Back

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

Front

What does the Interest Rate represent in a simple interest calculation?

Back

The Interest Rate represents the percentage of the principal charged as interest over a specific period.

Front

How do you convert years into months for calculating simple interest?

Back

To convert years into months, multiply the number of years by 12.

Front

If the Principal is $800, the Interest Rate is 3.5%, and the Time is 6 months, what is the interest earned?

Back

$14

Front

What is the total amount to be paid back if the starting money is $350, the interest rate is 2.5%, and the time is 3 years?

Back

$376.25

Front

How do you calculate the total amount to be paid back in a simple interest loan?

Back

Total Amount = Principal + Interest.