Simple Interest

Front

What is Simple Interest?

Back

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

Tags

CCSS.7.RP.A.3

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.

Tags

CCSS.7.RP.A.3

Front

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

Back

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

Tags

CCSS.6.EE.B.7

Front

If you invest $1000 at a 5% simple interest rate for 2 years, how much interest will you earn?

Back

You will earn $100 in interest.

Tags

CCSS.7.RP.A.3

Front

How do you calculate the total amount after interest is added?

Back

Total Amount = Principal + Interest.

Tags

CCSS.7.RP.A.3

Front

What is the interest earned on a $2000 investment at 3% simple interest for 4 years?

Back

The interest earned is $240.

Tags

CCSS.7.RP.A.3

Front

If Store A sells a TV for $500 with 8% interest for 2 years, what is the total cost?

Back

Total cost = $500 + ($500 * 0.08 * 2) = $580.

Tags

CCSS.6.RP.A.3C

Front

If Store B sells the same TV for $550 with 5% interest for 2 years, what is the total cost?

Back

Total cost = $550 + ($550 * 0.05 * 2) = $605.

Tags

CCSS.7.RP.A.3

Front

What is the difference in total cost between Store A and Store B?

Back

Store A costs $580 and Store B costs $605, so the difference is $25.

Tags

CCSS.2.NBT.B.7

CCSS.3.NBT.A.2

Front

What is the balance on an account with $5000 at 6% simple interest for 9 months?

Back

The balance is $5225.

Tags

CCSS.7.RP.A.3