Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the amount of money paid for borrowing or earned from lending money, calculated using the formula I = Prt.

Front

What does 'P' stand for in the formula I = Prt?

Back

'P' stands for the principal, which is the amount of money borrowed or deposited.

Front

What does 'r' represent in the formula I = Prt?

Back

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

Front

What does 't' stand for in the formula I = Prt?

Back

't' stands for the time the money is borrowed or invested, usually in years.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, move the decimal point two places to the left.

Front

If you borrow $4,000 at a 6% interest rate for 5 years, how much interest do you pay?

Back

$1,200

Front

If Mrs. Kenny buys a statue for $6,500 with an 8% interest rate for 5 years, what is the total amount she will pay?

Back

$9,100

Front

What is the formula to calculate Simple Interest?

Back

The formula is I = Prt.

Front

If you start with $350 and have an interest rate of 2.5% for 3 years, how much interest do you earn?

Back

$26.25

Front

What is the total amount paid if the principal is $4,000, interest is $1,200, and time is 5 years?

Back

$5,200