Simple interest

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It is given by the formula: Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: I = P × r × t, where I is the interest, P is the principal amount, r is the rate of interest per year, and t is the time in years.

Front

If the principal is $500 and the interest earned in 4 years is $60, what is the interest rate?

Back

The interest rate is 3%.

Front

How much interest will Julie earn if she borrows $3,500 for 3 years at a 7% simple interest rate?

Back

Julie will earn $735 in interest.

Front

Maria borrowed $3,000 at a simple interest rate of 4% per year. How much will she repay after 4 years?

Back

Maria will repay $3,480 after 4 years.

Front

What is the total amount to be repaid if the simple interest is $1,350 on a loan of $5,000 for 3 years?

Back

The total amount to be repaid is $6,350.

Front

If you pay your loan quarterly, how many times a year must you make your payment?

Back

You must make your payment 4 times a year.

Front

What is the principal amount if the interest earned is $60 at a rate of 3% over 4 years?

Back

The principal amount is $500.

Front

What is the interest rate if Jenna borrowed $5,000 for 3 years and paid $1,350 in simple interest?

Back

The interest rate is 9%.

Front

How do you calculate the total amount to be repaid on a loan?

Back

Total Amount = Principal + Interest.