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 the 'P' in the formula I = Prt represent?

Back

The 'P' represents the principal, which is the initial amount of money borrowed or deposited.

Front

What does the 'r' in the formula I = Prt represent?

Back

The 'r' represents the interest rate, which is the percentage of the principal charged as interest for one year.

Front

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

Back

The 't' represents the time, usually measured in years, for which the money is borrowed or invested.

Front

If Tye puts $300 in a bank account earning 4% interest, how much interest will he earn in 1 year?

Back

$12

Front

If the principal is $800, the interest rate is 3.5%, and the time is 6 months, how much interest is earned?

Back

$14

Front

Emma borrowed $4,000 for 5 years at a 6% simple interest rate. How much interest did she pay?

Back

$1,200

Front

What is the formula for calculating Simple Interest?

Back

The formula is I = Prt.

Front

What is the principal in a loan?

Back

The principal is the amount of money that is borrowed or invested.

Front

How do you calculate the interest earned on a principal amount?

Back

Multiply the principal (P) by the interest rate (r) and the time (t): I = Prt.