Simple Interest and Proportional Relationships

Front

What does the 't' represent in the simple interest formula I=Prt?

Back

Time, in years.

Front

What is the simple interest formula?

Back

I=prt.

Front

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

Back

Interest.

Front

What is simple interest?

Back

A method to calculate the interest charge on a loan based on the principal amount and the interest rate.

Front

What is the principal in the context of simple interest?

Back

The initial amount of money borrowed or invested.

Front

How do you calculate simple interest?

Back

Simple Interest (I) = Principal (P) × Rate (r) × Time (t).

Front

If you invest $1000 at a 5% interest rate for 3 years, what is the simple interest earned?

Back

$150.

Front

What is a proportional relationship?

Back

A relationship where two quantities maintain a constant ratio.

Front

How can you identify a proportional relationship from a graph?

Back

If the graph is a straight line that passes through the origin.

Front

If Emilio borrows $1200 at 8% simple interest for 2 years, how much total will he pay back?

Back

$1392.