Simple Interest

Front

The simple interest formula is I = Prt. What does 'P' represent?

Back

The amount of money borrowed or deposited.

Front

What is the formula to calculate simple interest?

Back

I = Prt, where I is interest, P is principal, r is rate, and t is time.

Front

If Ann puts $300 in a bank account earning 4% interest, how much interest will she earn in 1 year?

Back

$12.

Front

Calculate the simple interest on $26,500 at 12% for 7 years.

Back

$22,260.

Front

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

Back

Rate.

Front

If you deposit $225 at a rate of 1.5% for 2 years, what is the simple interest earned?

Back

$6.75.

Front

What is the time period in the simple interest formula?

Back

The duration for which the money is borrowed or invested.

Front

How do you convert a percentage to a decimal for calculations?

Back

Divide the percentage by 100.

Front

If the principal is $500 and the rate is 5% for 3 years, what is the interest?

Back

$75.

Front

What is the principal in a simple interest calculation?

Back

The initial amount of money that is borrowed or invested.