Simple Interest Practice

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It can be 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 (in decimal), and T is the time in years.

Front

If a person borrows $1200 at an interest rate of 7% per year for 5 years, what is the Simple Interest?

Back

The Simple Interest is $420.

Front

Calculate the Simple Interest on a principal amount of $500 at an interest rate of 5% per year for 3 years.

Back

The Simple Interest is $75.

Front

What is the total value of an investment of $1800 at a 2.5% simple interest rate for 20 years?

Back

The total value of the investment is $2700.

Front

If $1000 is invested at an interest rate of 4% per year, what is the Simple Interest earned after 3 years?

Back

The Simple Interest earned is $120.

Front

Find the Simple Interest on a loan of $2000 at an interest rate of 6% per year for 4 years.

Back

The Simple Interest is $480.

Front

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

Back

Principal refers to the initial amount of money that is borrowed or invested, before any interest is added.

Front

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

Back

Rate refers to the percentage of interest charged on the principal amount, usually expressed as an annual rate.

Front

What does 'Time' refer to in the Simple Interest formula?

Back

Time refers to the duration for which the money is borrowed or invested, measured in years.