Simple Interest

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What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It is calculated using the formula I = Prt, where I is the interest, P is the principal, r is the rate of interest, and t is the time in years.

Tags

CCSS.7.RP.A.3

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What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is I = Prt.

Tags

CCSS.7.RP.A.3

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What does 'P' represent in the Simple Interest formula?

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'P' represents the Principal amount, which is the initial sum of money borrowed or invested.

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CCSS.8.EE.C.7B

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What does 'r' represent in the Simple Interest formula?

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'r' represents the rate of interest, usually expressed as a percentage.

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What does 't' represent in the Simple Interest formula?

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

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CCSS.6.EE.B.7

Front

Convert 4.3% to a decimal.

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0.043

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

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$192

Tags

CCSS.7.RP.A.3

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If Jenna borrowed $5,000 for 3 years and paid $1,350 in simple interest, what was her interest rate?

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9%.

Tags

CCSS.7.RP.A.3

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How do you calculate the total amount to be paid back after borrowing money with Simple Interest?

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Total Amount = Principal + Interest.

Tags

CCSS.7.RP.A.3

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If the principal is $1,000, the rate is 5%, and the time is 3 years, what is the Simple Interest?

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$150.

Tags

CCSS.7.RP.A.3