Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the money paid for the use of borrowed money, calculated as a percentage of the principal amount.

Front

What is the formula for calculating Simple Interest?

Back

The formula is I = P * r * t, where I is the interest, P is the principal, r is the rate, and t is the time.

Front

What does 'P' stand for in the Simple Interest formula?

Back

P stands for Principal, which is the initial amount of money borrowed or invested.

Front

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

Back

r represents the rate of interest, expressed as a decimal.

Front

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

Back

t represents the time the money is borrowed or invested, usually in years.

Front

If you borrow $1,000 at a 5% interest rate for 2 years, how much interest do you pay?

Back

You pay $100 in interest.

Front

If you borrow $2,000 at a 3% interest rate for 4 years, how much interest do you pay?

Back

You pay $240 in interest.

Front

What is the total amount to be paid back if you borrow $500 at 4% interest for 3 years?

Back

You will pay back $620 in total.

Front

If you have $800 and earn 2% interest for 5 years, how much interest do you earn?

Back

You earn $80 in interest.

Front

What is the total amount if you borrow $1,500 at 6% interest for 1 year?

Back

You will pay back $1,590 in total.