Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the amount of money earned or paid on a principal amount over a specific period of time, calculated using the formula I = Prt.

Front

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

Back

P stands for Principal, which is the initial amount of money borrowed or deposited.

Front

What does r represent in the formula I = Prt?

Back

r represents the interest rate, expressed as a decimal.

Front

What does t represent in the formula I = Prt?

Back

t represents 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, divide the percentage by 100.

Front

If the principal is $800 and the interest rate is 3.5%, what is the interest earned in 6 months?

Back

$14

Front

If you invest $350 at an interest rate of 2.5% for 3 years, how much interest will you earn?

Back

$26.25

Front

How much interest will Tye earn if he puts $300 in a bank account earning 4% interest for 1 year?

Back

$12

Front

If AJ borrowed $4,000 for 5 years at a 6% simple interest rate, how much interest did he pay?

Back

$1,200

Front

What is the formula to calculate Simple Interest?

Back

The formula is I = Prt, where I is interest, P is principal, r is the rate, and t is time.