Simple interest

Front

What is Simple Interest?

Back

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

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 of interest per year, and t is the time in years.

Front

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

Back

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

Front

If you deposit $500 at a 4% interest rate, how much interest will you earn in 1 year?

Back

$20

Front

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

Back

Total Amount = Principal + Interest.

Front

If Maria borrowed $3,000 at a 4% interest rate for 4 years, how much interest does she owe?

Back

$480

Front

What is the interest earned on a principal of $1,000 at a 5% interest rate over 3 years?

Back

$150

Front

If the interest earned is $60 over 4 years, what is the interest rate if the principal is $500?

Back

3%.

Front

What is the total amount Emilio has to pay back after borrowing $1,200 at 8% interest for 2 years?

Back

$1,392.

Front

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

Back

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