Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It is calculated using the formula: SI = P * r * t, where SI is the simple interest, P is the principal, r is the rate of interest per year, and t is the time in years.

Front

How do you convert time from months to years in simple interest calculations?

Back

To convert time from months to years, divide the number of months by 12.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: SI = P * r * t.

Front

If the principal is $2,000, the rate is 8%, and the time is 5 years, what is the simple interest?

Back

The simple interest is $800.

Front

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

Back

'P' represents the Principal amount, which is the initial sum of money borrowed or invested.

Front

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

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'r' represents the rate of interest, expressed as a percentage.

Front

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

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't' represents the time period for which the money is borrowed or invested, expressed in years.

Front

If a student borrows $1,000 at an interest rate of 8% per annum for 2 years, what is the total amount to be repaid?

Back

The total amount to be repaid is $1,160.

Front

Calculate the simple interest for a principal of $15,836 at an interest rate of 8.23% for 10 years.

Back

The simple interest is $13,033.

Front

What is the total amount if the principal is $1,000 and the simple interest earned is $160?

Back

The total amount is $1,160.