Simple interest

Front

What is simple interest?

Back

Simple interest is a method of calculating the interest charged or earned on a principal amount over a specific period of time, using a fixed interest rate.

Front

What is the formula for calculating simple interest?

Back

I = P * r * t, where I is the interest, P is the principal amount, r is the rate of interest per year, and t is the time in years.

Front

If you deposit $1000 at an interest rate of 5% for 3 years, how much interest will you earn?

Back

$150

Front

What does 'P' stand for in the simple interest formula?

Back

P stands for the principal amount, which is the initial sum of money deposited or borrowed.

Front

What does 'r' represent in the simple interest formula?

Back

r represents the annual interest rate, expressed as a decimal.

Front

What does 't' represent in the simple interest formula?

Back

t represents the time the money is invested or borrowed for, measured in years.

Front

If you earn $200 in interest on a principal of $2000 over 5 years, what is the interest rate?

Back

The interest rate is 2%.

Front

How much interest will you earn on $500 at an interest rate of 4% over 4 years?

Back

$80

Front

If you borrow $3000 at an interest rate of 6% for 2 years, how much interest will you pay back?

Back

$360

Front

What is the total amount to be paid back if you borrow $2000 at 5% interest for 3 years?

Back

$2300 (Principal + Interest = $2000 + $300)