Simple Interest

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What is Simple Interest?

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Simple Interest is the interest calculated on the principal amount only, without compounding. It can be 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.

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What is the formula for calculating Simple Interest?

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The formula for calculating Simple Interest is I = Prt.

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In the formula I = Prt, what does 'P' represent?

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

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In the formula I = Prt, what does 'r' represent?

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

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In the formula I = Prt, what does 't' represent?

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

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How do you convert a percentage to a decimal?

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To convert a percentage to a decimal, divide the percentage by 100. For example, 25% becomes 0.25.

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How do you convert a decimal to a percentage?

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To convert a decimal to a percentage, multiply the decimal by 100. For example, 0.75 becomes 75%.

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Calculate the simple interest on $5,000 at 4.25% for 6 months.

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The simple interest is $106.25.

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Calculate the simple interest on $3,070 at 8.65% for 2.25 years.

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The simple interest is $597.50.

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Calculate the simple interest on $834 at 7.25% for 1.5 years.

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The simple interest is $90.70.