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, where I is the interest, P is the principal, r is the rate of interest, and t is the time in years.

Tags

CCSS.7.RP.A.3

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is I = P * r * t.

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CCSS.7.RP.A.3

Front

If Anna invests $2,500 at an annual rate of 5%, how much interest will she earn in 9 years?

Back

Anna will earn $1,125 in interest.

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CCSS.7.RP.A.3

Front

How do you convert months to years?

Back

To convert months to years, divide the number of months by 12. For example, 18 months is 18/12 = 1.5 years.

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CCSS.4.MD.A.1

Front

What does 'P' stand for in the Simple Interest formula?

Back

'P' stands for Principal, which is the initial amount of money invested or borrowed.

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CCSS.8.EE.C.7B

Front

What does 'r' represent in the Simple Interest formula?

Back

'r' represents the rate of interest, expressed as a decimal or percentage.

Front

What does 't' represent in the Simple Interest formula?

Back

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

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CCSS.8.EE.C.7B

Front

If Emilio borrows $1200 at an 8% interest rate for 2 years, how much total will he pay back?

Back

Emilio will pay back a total of $1392.

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CCSS.7.RP.A.3

Front

What is the total amount paid back if the principal is $1200, the rate is 8%, and the time is 2 years?

Back

Total Amount = Principal + Interest = $1200 + ($1200 * 0.08 * 2) = $1392.

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CCSS.7.RP.A.3

Front

What is the interest earned on a principal of $2500 at a rate of 5% over 9 years?

Back

The interest earned is $1,125.

Tags

CCSS.7.RP.A.3