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: Simple Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for Simple Interest is: SI = P × R × T, where SI is Simple Interest, P is the principal amount, R is the rate of interest (in decimal), and T is the time (in years).

Front

Calculate the Simple Interest on $100 at 5% for 10 years.

Back

$50

Front

Calculate the Simple Interest on $840 at 3.5% for 9 months.

Back

$220.5

Front

If Cara puts $4,000 in a college savings account with a 5% simple interest rate, how much will she have after 5 years?

Back

$5000

Front

Calculate the Simple Interest on $2400 at 3.5% for 5.25 years.

Back

$441

Front

Calculate the Simple Interest on $750 at 3% for 15 years.

Back

$337.50

Front

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

Back

Principal is the initial amount of money that is invested or loaned, before any 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, usually expressed as an annual rate.

Front

What does 'Time' represent in the Simple Interest formula?

Back

Time represents the duration for which the money is invested or borrowed, typically measured in years.