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 simple interest 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 simple interest 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 simple interest formula I = P * r * t?

Back

't' represents the time the money is borrowed or invested, typically measured in years.

Front

Convert 18 months to years.

Back

1.5 Years

Front

If Jenna borrowed $5,000 for 3 years and paid $1,350 in simple interest, what was the interest rate?

Back

9%.

Front

Calculate the simple interest earned on a principal of $500 at a rate of 10% over 8 years.

Back

$400.

Front

Starting money = $350, Interest rate = 2.5%, Time = 3 years. How much interest is earned?

Back

$26.25.

Front

What is the formula for calculating Simple Interest?

Back

I = P * r * t.

Front

If the principal is $1,000, the rate is 5%, and the time is 4 years, what is the simple interest?

Back

$200.