Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It is calculated using the formula: Simple Interest = Principal × Rate × Time.

Front

What does the formula for Simple Interest look like?

Back

The formula for Simple Interest is: SI = P × R × T, where SI is Simple Interest, P is Principal, R is Rate (in decimal), and T is Time (in years).

Front

If the principal amount is $500, the interest rate is 5%, and the time period is 3 years, what is the simple interest?

Back

$75

Front

A student borrowed $1000 from a bank at an interest rate of 8% per annum. If the student repays the loan after 2 years, what is the total amount to be repaid?

Back

$1160

Front

If the principal amount is $3000, the interest rate is 5%, and the time period is 4 years, what is the simple interest?

Back

$600

Front

Sara invested $5000 in a bank at an interest rate of 4% per annum. How much interest will she earn after 2 years?

Back

$400

Front

What does the P stand for in the simple interest equation?

Back

Principal

Front

How do you convert a percentage to a decimal for calculations?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 5% becomes 0.05.

Front

What is the total amount to be repaid if the principal is $2000, the interest rate is 6%, and the time is 3 years?

Back

$2480

Front

If you invest $1500 at an interest rate of 3% for 5 years, how much interest will you earn?

Back

$225