Simple Interest

Front

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

Back

Interest

Front

The simple interest formula is I=Prt. What does the 't' represent?

Back

Time, in years

Front

What does the 'r' in the interest formula stand for?

Back

rate

Front

What is the formula for calculating simple interest?

Back

I = Prt

Front

If you invest $1000 at a rate of 5% for 3 years, how much interest will you earn?

Back

$150

Front

What is the principal in the simple interest formula?

Back

The initial amount of money borrowed or invested.

Front

If the interest rate is 10% per year, how would you express this as a decimal?

Back

0.10

Front

How do you calculate the total amount to be paid back after borrowing money?

Back

Total Amount = Principal + Interest

Front

If you borrow $500 at a 6% interest rate for 4 years, how much interest will you pay?

Back

$120

Front

What is the total amount to be paid back if you borrow $500 at 6% interest for 4 years?

Back

$620