Simple Interest

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What is Simple Interest?

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Simple Interest is the interest calculated on the principal amount only, without compounding. It is calculated using the formula I = Prt, where I is the interest, P is the principal, r is the rate of interest, and t is the time in years.

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What is the formula for calculating Simple Interest?

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The formula for calculating Simple Interest is I = Prt.

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In the formula I = Prt, what does 'P' stand for?

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In the formula I = Prt, 'P' stands for Principal, which is the initial amount of money borrowed or invested.

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In the formula I = Prt, what does 'r' represent?

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In the formula I = Prt, 'r' represents the rate of interest per year, expressed as a decimal.

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In the formula I = Prt, what does 't' represent?

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In the formula I = Prt, 't' represents the time in years for which the money is borrowed or invested.

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Convert 0.37 to a percent.

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0.37 as a percent is 37%.

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Convert 4.3% to a decimal.

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4.3% as a decimal is 0.043.

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If Emilio borrows $1200 at 8% simple interest for 2 years, how much interest will he pay?

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Emilio will pay $192 in interest.

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What is the total amount Emilio has to pay back after borrowing $1200 at 8% simple interest for 2 years?

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Emilio has to pay back a total of $1392.

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

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'I' stands for Interest, which is the amount earned or paid for the use of money.