Simple Interest Flashcard

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It can be calculated using the formula: Simple Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: SI = P × R × T, where SI is Simple Interest, P is the Principal amount, R is the Rate of interest per year, and T is the Time in years.

Front

If the principal amount is $800, the interest rate is 4%, and the time period is 5 years, what is the simple interest?

Back

$160

Front

If the principal amount is $2000, the interest rate is 7%, and the time period is 4 years, what is the simple interest?

Back

$560

Front

A student borrowed $1000 from a bank at an interest rate of 8% per annum. If the student repays the loan after 2 years, what is the total amount to be repaid?

Back

$1160

Front

If the principal amount is $500, the interest rate is 5%, and the time period is 3 years, what is the simple interest?

Back

$75

Front

Sara invested $5000 in a bank at an interest rate of 4% per annum. How much interest will she earn after 2 years?

Back

$400

Front

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

Back

Principal is the initial amount of money that is invested or borrowed before interest is added.

Front

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

Back

Rate refers to the percentage of interest charged or earned on the principal amount, typically expressed as an annual rate.

Front

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

Back

Time refers to the duration for which the money is borrowed or invested, usually measured in years.