Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the amount of money paid or earned on a principal amount over a specific period of time, calculated using the formula I = Prt.

Front

What does 'P' stand for in the simple interest formula I = Prt?

Back

'P' stands for the principal amount, which is the initial amount of money borrowed or deposited.

Front

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

Back

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

Front

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

Back

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

Front

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

Back

$100.

Front

If you deposit $200 at a 3% interest rate for 4 years, how much interest will you earn?

Back

$24.

Front

What is the formula to calculate Simple Interest?

Back

I = Prt.

Front

If the principal is $500 and the interest rate is 10% for 1 year, how much interest is earned?

Back

$50.

Front

What is the total amount after earning $30 interest on a $300 deposit at 10% for 1 year?

Back

$330.

Front

If you have $600 in a bank account earning 2% interest for 3 years, how much interest will you earn?

Back

$36.