Simple Interest

Front

What is 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

The formula is I = P * r * t, where I is the interest, P is the principal, r is the rate of interest (as a decimal), and t is the time in years.

Front

If the principal is $350, the interest rate is 2.5%, and the time is 3 years, how much interest is earned?

Back

$26.25

Front

Emilio borrows $1200 at an 8.5% interest rate for 2 years. How much will he pay back in total?

Back

$1,404

Front

Tina invested $2,000 at an 8% interest rate for 5 years. What is the interest earned?

Back

$800

Front

In the formula I = P * r * t, what does P represent?

Back

P represents the principal, which is the amount of money borrowed or deposited.

Front

Convert 4.3% to a decimal.

Back

.043

Front

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

Back

The 'r' represents the rate of interest per year, expressed as a decimal.

Front

If you have a principal of $500 and an interest rate of 5% for 4 years, what is the interest?

Back

$100

Front

What is the total amount to be paid back if the principal is $1,000, the interest rate is 6%, and the time is 3 years?

Back

$1,180