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 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 Ryan deposited $2,000 at an interest rate of 4% for 5 years, how much interest will he earn?

Back

$400

Front

How do you calculate the total amount to be repaid on a loan with Simple Interest?

Back

Total Amount = Principal + Simple Interest.

Front

If Garcia borrowed $4,000 at 8% for 2 years, how much did he repay?

Back

$4,640

Front

What is the principal amount in a Simple Interest calculation?

Back

The principal amount is the initial sum of money borrowed or invested before interest.

Front

If Tracy invested $3,500 at 4.5% for 8 years, how much interest does she earn?

Back

$1,260

Front

What does the term 'Rate' refer to in Simple Interest?

Back

The 'Rate' refers to the percentage of interest charged or earned on the principal amount per year.

Front

Calculate the Simple Interest for Principal = $1,500, Rate = 7%, Time = 8 years.

Back

$840

Front

If Mr. Peterson paid off a loan of $7,820 at 5% for 3 years, what was the original amount borrowed?

Back

$6,800