Consumer math review

Front

What is simple interest?

Back

Simple interest is a method of calculating the interest charge on a loan or financial product. It is calculated using the formula: Interest = Principal × Rate × Time.

Front

How do you calculate the total balance after applying simple interest?

Back

Total Balance = Principal + Interest, where Interest = Principal × Rate × Time.

Front

If you invest $1500 at an interest rate of 8.25% for 18 years, what is the interest earned?

Back

Interest = $1500 × 0.0825 × 18 = $2,227.50.

Front

What is the total balance after 18 years for an investment of $1500 at 8.25% simple interest?

Back

Total Balance = $1500 + $2,227.50 = $3,727.50.

Front

How do you calculate the interest earned on a savings account?

Back

Interest = Principal × Rate × Time.

Front

If Claire deposited $1,800 at 2.5% interest for 12 years, how much interest did she earn?

Back

Interest = $1,800 × 0.025 × 12 = $540.

Front

What is the formula for calculating the interest on a loan?

Back

Interest = Principal × Rate × Time.

Front

If Mark took a loan of $25,690 at 5.2% for 5 years, how much interest will he pay?

Back

Interest = $25,690 × 0.052 × 5 = $6,679.40.

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Original Price - (Original Price × Discount Rate).

Front

If a jacket costs $85 and is on sale for 40% off, what is the sale price?

Back

Sale Price = $85 - ($85 × 0.40) = $51.