(7) Simple Interest (3-6)

Front

What are the three elements needed to calculate Simple Interest?

Back

Principal, Rate, Time

Front

If Meghan borrows $8650 at 4.5% interest for 5 years, how much interest will she pay back?

Back

$1946.25

Front

Nan invested $6,000 at 3% annual interest. How much will she have after 4 years?

Back

$6720

Front

Bob deposited $15,000 at 15% annual interest. How much will he have after 1 year?

Back

$17,250

Front

Joe deposited $1000 into a College Fund at 4% annual interest. How much will he have after 18 years?

Back

$1720

Front

Define Simple Interest.

Back

Simple Interest is the interest calculated on the principal amount only, without compounding.

Front

What is the formula for calculating Simple Interest?

Back

Simple Interest = Principal × Rate × Time

Front

If the principal is $2000, the rate is 5%, and the time is 3 years, what is the Simple Interest?

Back

$300

Front

What does 'Principal' mean in the context of Simple Interest?

Back

Principal is the initial amount of money borrowed or invested.

Front

What does 'Rate' refer to in Simple Interest calculations?

Back

Rate is the percentage of interest charged or earned on the principal.