Simple & Compound Interest

Front

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

Back

rate

Front

Change 0.16 into a percent.

Back

16%

Front

Find the simple interest paid on a loan of $750 with an 18% rate over 2 years.

Back

$270

Front

The simple interest formula is I=Prt. What does the 't' represent?

Back

Time, in years

Front

Damara invests $3500 at 2% compounded continuously for 5 years. How much will she have in her account after 5 years?

Back

$3864.28

Front

What is the formula for calculating simple interest?

Back

I = P * r * t

Front

Define principal in the context of interest calculations.

Back

The principal is the initial amount of money invested or loaned.

Front

What is the difference between simple interest and compound interest?

Back

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal and the accumulated interest.

Front

If you invest $1000 at a 5% simple interest rate for 3 years, how much interest will you earn?

Back

$150

Front

What does 'compounded annually' mean?

Back

Interest is calculated once a year on the principal and any accumulated interest.